Global stocks slip in populist tide

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

Stocks on Wall Street joined a global selloff as weak eurozone economic data was compounded by political uncertainty in France and the Netherlands.

European markets were also sharply lower as the eurozone's private sector contracted the most in five months in April.

In France, President Sarkozy trails socialist challenger François Hollande after the first round of the presidential election, with the Front National holding a 20% voting share that could decide the final result.

All are promoting populist economic policies that oppose government debt reduction programmes. The Dutch coalition government collapsed on similar opposition to austerity policies.

The Dow Jones Industrial Average dropped 102.09 points, or 0.8%, to 12,927.17 at the close (8am NZ time).

The S&P 500 index shed 0.8%, to 1366.94 as all 10 of the index's sectors declined. The Nasdaq Composite fell 1.0%, to 2970.45.

Other markets: Europe, Asia down; commodities fall
The Stoxx Europe 600 index sank 2.3% to 251.75, its lowest close since mid-January.

French stocks slid into the red for the year as the CAC 40 index dropped 2.8% to 3098.37. The Amsterdam AEX index plunged 2.6% to 301.27.

Germany's DAX dropped 3.4% 3.4% to 6523.00, the UK’s FTSE 100 index ended 1.85% lower at 5665.57 and Spain's IBEX 35 fell 2.8%.

Asian markets also fell. China's Shanghai Composite was down 0.8% to 2388.59 after manufacturing activity continued to contract in April, although at a slower rate than in March.

Hong Kong's Hang Seng Index dropped 1.8% to 20624.39 and Australia's S&P/ASX 200 index fell 0.3% to 4352.40.

Japan's Nikkei Stock Average lost 0.2% to 9542.17 in its third-straight drop, Korea's Kospi slipped 0.1% to 1972.63 and Taiwan's Taiex shed 0.3% to 7481.09.

Commodities: Oil, gold down
Crude futures slumped on investor sentiment that falling oil demand is likely to continue.

Light, sweet crude for June delivery settled 77USc, or 0.7%, lower at $US103.11 a barrel in New York, after falling as low as $US101.82 earlier in the session.

Brent crude on the ICE futures exchange traded 20USc lower at $US118.65 a barrel.

A rise in the US dollar dented demand for gold and pushing the precious metal to its lowest price in more than two weeks.

The most actively traded contract, for June delivery, fell $US10.20, or 0.6%, to settle at $US1632.60 an ounce in New York, the lowest settlement price since April 5.

Currencies: Euro crumbles
The euro crumbled on political developments in Europe that are unfavourable to markets. The euro was at $US 1.3154 compared with $US1.3218 late on Friday.

The dollar was at ¥81.18 compared with ¥81.55, while the euro was at ¥106.78 compared with ¥107.83.

The pound bought $US1.6129 from $US1.6123, while the dollar fetched 0.9138 Swiss franc from 0.9091 franc.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.7552 -0.0013 -0.17%
AUD 0.9678 0.0004 0.04%
EUR 0.6746 -0.0006 -0.09%
GBP 0.4897 0.0000 0.00%
HKD 5.8641 -0.0002 -0.00%
JPY 90.3380 -0.0320 -0.04%


Commodity Price Change Time
Gold Index 1212.6 3.670 2015-02-27T00:
Oil Brent 62.6 1.590 2015-02-27T00:
Oil Nymex 49.8 1.310 2015-02-27T00:
Silver Index 16.5 -0.022 2015-02-27T00:


Symbol Open High Last %
NZX 50 5861.7 5878.5 5847.5 0.53%
NASDAQ 4985.0 4989.2 4987.9 -0.49%
DAX 11337.1 11401.7 11327.2 0.66%
DJI 18213.3 18213.3 18214.4 -0.45%
FTSE 6949.7 6967.2 6949.7 -0.04%
HKSE 24902.6 25102.0 24902.1 -0.32%
NI225 18844.3 18865.4 18785.8 0.06%