KEY POINTS:
Australia and Japan have joined the global lurch downwards hitting international bourses today.
Worldwide, stockmarkets are reeling today, as the fallout from the US sub-prime mortgage crisis continues to spread unabated. The commodities market is also a factor - OPEC's oil prices hovering near the US$100 mark are also contributing to weakness in the equity markets.
AUSTRALIA
The Australian share market has launched into trade lower today, failing to shake off this week's losing streak triggered by losses on Wall Street.
At 1015 AEDT, the benchmark S&P/ASX200 index was down 37.1 points or 0.58 per cent to 6347.2, while the All Ordinaries had lost 46.5 points or 0.72 per cent to 6403.7.
The major miners both opened sharply lower, with BHP Billiton down 76 cents or 1.83 per cent to A$40.29 and Rio Tinto down A$1.64 or 1.25 per cent to A$129.26.
JAPAN
Japan's Nikkei tumbled to a new 16-month low this afternoon (NZ time), battered down by a Wall Street fall on growing credit worries and a rapidly strengthening yen that hit exporters such as Canon.
The Nikkei was down 0.63 per cent at 14,744.44 after touching a new 16-month low of 14,726.62 at the open.
EUROPE:
European shares fell sharply overnight (NZ time) as fresh concern about the fallout of a credit crunch hit banks, while the record high euro dragged down shares of major exporters.
The FTSEurofirst 300 index of top European shares ended at an unofficial close of 1,445.18 points, showing a 2.35 per cent fall on the day.
Banks were the biggest declining sector, driven by a sharp fall in Societe Generale which shed about 7 per cent in its largest one-day fall in five years after a broker downgrade.
UNITED STATES:
US stocks tumbled this morning (NZ time), driving the benchmark S&P 500 briefly into negative territory for the year, on fears that the credit crisis and fallout from the housing slump will hurt economic growth, while a surge in fuel costs threatened to squeeze holiday spending.
Shares of financial services companies, including Goldman Sachs, led the sell-off, while those of big manufacturers and retailers sunk on concern about the impact of crude oil prices nearing $100 a barrel.
US Treasury Secretary Henry Paulson said the number of potential US home-loan defaults will be significantly bigger in 2008 than in 2007. His comments in an interview with The Wall Street Journal added to the market's negative tone.
CURRENCY
The New Zealand dollar fell against the greenback, euro and yen overnight as investors' aversion to risk grew.
By 8am today the kiwi was buying US75.04c, having been above US76.60c around noon yesterday, and overnight dropping to below US74.60c for the first time in more than a week.
ANZ bank today said the NZ dollar had been dragged along for the ride as heavy exiting from carry trades, where cheaply borrowed yen is used to buy higher-yielding currencies, saw the Australian dollar sold off.
- REUTERS, NZPA