THE PENSKE FILE JULY 9
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The ASX looks set to continue yesterdays downward pressure with Sept SPI Futures retreating 31 points at 5370.
European markets finished higher reversing earlier heavy selling. DAX was .65% higher, FTSE .9% higher
US stocks ended sharply lower on Wednesday as market turmoil in China eclipsed Greece's debt crisis, while the New York Stock Exchange suffered a major outage.
Fears that a rout in Chinese stocks could seriously harm the country's economy and spread beyond its borders pushed the S&P 500 below its 200-day moving average for the first time since October and into negative territory for 2015.
The NYSE, a unit of Intercontinental Exchange Inc, resumed trade late in the session after a technical problem forced a suspension for more than three hours in the biggest outage to strike a US financial market in nearly two years.
Chinese shares have fallen more than 30 per cent in the last three weeks, and some investors fear China's turmoil is now a bigger risk than the crisis in Greece.
The Dow Jones industrial average fell 261.49 points, or 1.47 per cent, to end at 17,515.42. The S&P 500 lost 34.65 points, or 1.66 per cent, to 2046.69 and the Nasdaq Composite dropped 87.70 points, or 1.75 per cent, to 4909.76.
All 10 major S&P 500 sectors were lower, with the materials index down 2.17 per cent.
Iron ore retreated to the lowest level in at least six years as a rout in China's stock markets threatened to hurt demand in the largest buyer just as the biggest producers plan to raise output.
Ore with 62 per cent content delivered to Qingdao sank 10 per cent to $US44.59 a dry metric ton on Wednesday.
"We see increased freight activity at major iron ore terminals and a halt of port inventory drops," Goldman Sachs said in a report received on Wednesday that forecast prices at $US44 next year and $US40 in 2017. Low prices are required to trigger closures in an oversupplied environment, it said.
Gold gained $2 at $1158
$AUD at 74.26
metalscopper gained .6%, nickel .8%, the others relatively unchanged
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