Global shares plunge as Greece misses targets

Stocks on Wall Street and around the world plunged after Greece said over the weekend that it would miss its deficit targets this year.

Europe's sovereign debt woes overshadowed better-than-expected readings on manufacturing and construction spending in the US.

A manufacturing index in Europe added to positive economic news, while oil prices dipped to their lowest in a year and gold futures rose.

At the close (9am NZ time) the Dow Jones Industrial Average iwas down 258.08 points, or 2.4%, to 10,655.30. Banks were hardest hit with Bank of America, Morgan Stanley and Citigroup all fallimg more than 7%.

The Dow's losses were larger that Friday's 241 points on Friday, which capped a 12% decline for the third quarter. It was the Dow's worst quarterly percentage drop since the first quarter of 2009.

The S&P 500 index was down 2.9% to 1099.23, led lower by the healthcare and financial sectors. It is now down more than 20% from its 2011 high, putting it technically in bear territory.

The technology-oriented Nasdaq Composite was down 3.3%, to 2335.83. Yahoo climbed 4.4% after Jack Ma, chief executive of Chinese internet company Alibaba, said he was interested in buying.

Other markets: Europe, Asia down
European stocks fell sharply, though the negative tone was lessened with the release of the final euro-zone manufacturing Purchasing Managers Index which was marginally better than first published.

The benchmark Stoxx Europe 600 Index was 1.5% lower at 222.85. Frankfurt's DAX was 2.5% lower at 5363.91, Paris' CAC-40 Index dropped 2.1% to 2918.25 and London's FTSE 100 Index fell 1.4% to 5057.69.

Asian stock markets end sharply lower. Fears China's nonperforming loans may rise spurred a selloff in Hong Kong shares.

Manufacturing activity in Taiwan and Australia continued to contract in September.

Hong Kong's Hang Seng Index shed 4.4%, extending Friday's 2.3% decline to touch a 28-month low at 16,822.15. Mainland markets are closed this week for a holiday.

Japan's Nikkei Stock Average fell 1.8% to 8545.48, Australia's S&P/ASX 200 lost 2.8% to 3897.0 India's Sensex lost 1.8% to 16,151.45. Korean markets were closed for a holiday.

Commodities: Oil down, gold up
Oil futures slumped despite a report showing US manufacturing activity was better than expected.

Light, sweet crude for November delivery settled $US1.59, or 2%, lower at $US77.61 a barrel in New York -- the lowest settlement since September 28, 1010.

Brent crude was down $US1.05 to $US101.71 on the ICE futures exchange.

Gold futures rose after Greece added to concerns that Europe may be headed toward a default-spurred credit crunch.

The most-active contract for December delivery settled up $US35.40, or 2.2%, at $US1657.70 an ounce in New York while the October contract was also up 2.2% at $US1656.

Currencies: Euro tumbles
The euro fell a new 10-year low against the yen to ¥101.54 from Y103.12 late on Friday in New York. The euro also dipped below $US1.33 on the potential for a market destabilising Greece default. The euro was at $US1.3259 from $US1.3388.