Today's Coming Crisis Movie

Wednesday, May 16, 2012

Shares, dollar slide amid Greek poll drama

Australian financial markets were again rocked by the unfolding drama in the eurozone, with the share market dropping to a two-month low and the dollar continuing its slide.

The All Ordinaries slumped 2.4 per cent to 4,215 and the ASX 200 matched that loss to close on 4,166.

Germany's finance minister Wolfgang Schaeuble says there is no possibility of re-negotiating an international aid plan for Greece.

Meanwhile, the leaders of Greece's main political parties have failed to form a new government, forcing them to a new election and continued uncertainty about whether the country will repay its debts.

Investors were further spooked by bad economic news from China.

Resource stocks led the falls from the outset, and comments from BHP Billiton chairman Jac Nasser that commodity demand was likely to keep easing pushed mining shares further down.

BHP Billiton ended off 4 per cent at $32.49, Rio Tinto declined 3.9 per cent, while Fortescue Metals lost 5 per cent to $4.84.

ANZ Bank led the falls among the big four banks, giving up 2.3 per cent to $21.61.

But Suncorp retreated almost 5 per cent to $8.03.

Telstra was not spared - it lost 2.2 per cent to $3.63. Read More