Thursday, November 10, 2011

Dow JONES tumbles THREE PER CENT amid growing concerns in Europe - 10th Nov 2011

Trouble on two fronts in Europe's debt crisis dragged the Dow Jones industrial average down 389 points Wednesday.

The S&P 500 lost 3.7 per cent, its biggest one-day drop since August, after Italy's borrowing costs soared and talks collapsed in Greece on forming a new government.

The euro dipped 2 per cent against the dollar and Treasury yields sank as money moved out of Europe and traders bought U.S. government bonds.

Goldman Sachs, Morgan Stanley and other large banks were hit hard on worries over their ability to handle a financial crisis that might be brought on by trouble in Europe.

Only one stock in the S&P 500 rose: Best Buy Co. Inc., up 1.4 per cent.

The yield on the benchmark Italian government bond spiked above 7 per cent, evidence that investors are losing faith in the country's ability to repay its debt. Read More