Wall St plunges as debt deal passes

Stocks on Wall Street plunged in the longest losing streak in nearly two years as new signs of economic weakness trumped approval of the debt deal.

The Dow Jones Industrial Average lost more than 100 points in the last hour of trading, dropping 2.2%, or 265.87 points, to 11,866.62 at the close (9am NZtime).

This was eighth consecutive decline, which would be its longest since October 2008.The Dow has lost 6.7% during the skid, dating back to July 22.

Stocks traded near session lows after the US Senate voted to approve legislation to raise the country's debt ceiling and cut the budget deficit.

But data showing Americans cut spending by the most in nearly two years and saved at a faster rate during June underscored the economy's lack of vigour.

The S&P 500 index was down 2.6% to 1254.05, led lower by industrial and consumer-discretionary stocks. All 10 sectors in the S&P 500 traded in negative territory.

The technology-oriented Nasdaq Composite slumped 2.8% to 2669.24.

Other markets: Europe, Asia drop on economic concerns
European stocks tumbled as gloomy US economic data added to global growth concerns.

The Stoxx Europe 600 index dropped 1.9% to 256.98, its third consecutive decline, as relief over the debt-ceiling deal was eclipsed by new economic concerns.

The Stoxx Europe 600 touched levels not seen since October 2010.

The UK's FTSE 100 lost 0.7% to 5733.49, Germany's DAX fell 2.3% to 6796.75, and France's CAC-40 dropped 1.8% to 3522.79.

Asian stock markets fell as fresh worries over the global growth outlook emerged.

Stocks in Tokyo were hurt by a strong yen. The Nikkei Stock Average fell 1.2% to 9844.59.

In Sydney, the S&P/ASX 200 lost 1.4% to 4433.60 after the Reserve Bank of Australia left rates unchanged at 4.75% for a 10th month.

But the Australian dollar lost ground after the RBA issued a less hawkish than expected statement, citing downside risks to global growth.

Korea's Kospi fell 2.3% to 2121.27, Hong Kong's Hang Seng Index shed 1.1% to 22,421.46 and China's Shanghai Composite declined 0.9% to 2679.26.

Commodities: Oil falls, gold rises on growth fears
Crude oil futures were pushed lower by fresh signs of a slowing US economy and lower demand growth.

Light, sweet crude oil for September delivery in New York was 45USc lower at $US94.45 a barrel. ICE September Brent crude was 34USc down at $US116.48 a barrel.

Gold futures pushed to record highs as investors remained cautious on the chance that the US could see its credit rating downgraded.

The most actively traded gold contract, for December delivery, climbed $US22.80, or 1.4%, to settle at a record $US1644.50 an ounce in New York. The contract climbed to a record intraday high of $1,646.80 an ounce as well.

Currencies: Euro tumbles
The euro tumbled against the US dollar as fundamental challenges remain for the world's largest economy, including slower growth and loose monetary policy.

The euro fell to session lows beneath $US1.42 before recovering. The euro and dollar both plunged to new record lows against the Swiss franc at 1.0845 and 0.7642 franc, respectively.

The dollar also briefly poked below ¥77 but recovered amid jitters about intervention.

The euro was at $US1.4202 from $US1.4250 late on Monday. The dollar was at ¥77.09 from ¥77.21.

The euro traded at ¥109.48 compared with ¥110.01. The UK pound bought $US1.6286 from $US1.6296, while the dollar fetched 0.7675 franc from 0.7835 franc.