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Johannesburg/New York - South African stocks tumbled to their lowest close in nearly two months on Tuesday, falling 2.6% as global growth concerns and fears of contagion from the Greek debt crisis hit prices across the board, including safe-haven gold miners.
The JSE's Top 40 - (Tradeable) [JSE:J200] index of blue chips shed 692.37 points to close at 25 919.58, its lowest finish since early August, while the broader All Share [JSE:J203] index gave up 2.3% to 29 178.27.
Asian markets closed in negative territory.
US stocks tumbled and the S&P 500 entered bear market territory soon after the opening.
Wall Street fell about 2%, extending the previous day’s decline to 13-month lows as investors feared the crisis in Europe could throw the United States into a new recession
Oil down
Oil hit new annual lows for the third straight day with the economic crisis in Europe pushing Goldman Sachs to trim a once bullish outlook for energy demand.
Sachs, which had predicted sharp increases in oil prices this year, cut forecasts for benchmark and Brent crudes on Tuesday. The investment bank said energy demand growth will slow down as Europe's debt crisis raises the specter of a second recession.
Benchmark crude dropped for the third day, giving up $1.73 to $75.88 a barrel in morning trading in New York. Brent crude fell below $100 per barrel for the first time since August. It lost $1.97 to $99.74 in London.
European shares sharply fell to flirt with a 26-month closing low as European officials discussed making banks take bigger losses on Greek debt and delayed a key aid payment to Athens, with concerns growing that Greece could default.
Dexia plunged as much as 38% to record lows at one point on concerns about the Franco-Belgian financial group’s high exposure to Greece. Its shares fell 20.4%lower in heavy volumes, despite the fact that France and Belgium promised to support it via guarantees.
The European banking sector, down 4% featured among the top decliners, after the 17 finance ministers, meeting in Luxembourg, called for a review of a July 21 debt swap agreement with private holders of Greek bonds. The banking index has slumped 36.4% this year.
“Markets are nervous because there is a lot of political uncertainty. As long as we haven’t found a solution for the situation in Greece, the environment would remain challenging,” said Klaus Wiener, chief economist at Generali Investments, which manages $438bn.
“There is not an easy solution to the problem which has developed over many years. On the one hand, you can argue we need to give the money that is needed to the countries which have higher level of debt. At the same time, you have the problem of governance. You have to walk a fine balance here.”
The FTSEurofirst 300 index of top European shares provisionally ended 2.7% lower after falling as much as 4% to a one-week low earlier in the day. The index hit a 26-month closing low in late September and is down nearly 21% so far this year.
The JSE's Top 40 - (Tradeable) [JSE:J200] index of blue chips shed 692.37 points to close at 25 919.58, its lowest finish since early August, while the broader All Share [JSE:J203] index gave up 2.3% to 29 178.27.
Asian markets closed in negative territory.
US stocks tumbled and the S&P 500 entered bear market territory soon after the opening.
Wall Street fell about 2%, extending the previous day’s decline to 13-month lows as investors feared the crisis in Europe could throw the United States into a new recession
Oil down
Oil hit new annual lows for the third straight day with the economic crisis in Europe pushing Goldman Sachs to trim a once bullish outlook for energy demand.
Sachs, which had predicted sharp increases in oil prices this year, cut forecasts for benchmark and Brent crudes on Tuesday. The investment bank said energy demand growth will slow down as Europe's debt crisis raises the specter of a second recession.
Benchmark crude dropped for the third day, giving up $1.73 to $75.88 a barrel in morning trading in New York. Brent crude fell below $100 per barrel for the first time since August. It lost $1.97 to $99.74 in London.
European shares sharply fell to flirt with a 26-month closing low as European officials discussed making banks take bigger losses on Greek debt and delayed a key aid payment to Athens, with concerns growing that Greece could default.
Dexia plunged as much as 38% to record lows at one point on concerns about the Franco-Belgian financial group’s high exposure to Greece. Its shares fell 20.4%lower in heavy volumes, despite the fact that France and Belgium promised to support it via guarantees.
The European banking sector, down 4% featured among the top decliners, after the 17 finance ministers, meeting in Luxembourg, called for a review of a July 21 debt swap agreement with private holders of Greek bonds. The banking index has slumped 36.4% this year.
“Markets are nervous because there is a lot of political uncertainty. As long as we haven’t found a solution for the situation in Greece, the environment would remain challenging,” said Klaus Wiener, chief economist at Generali Investments, which manages $438bn.
“There is not an easy solution to the problem which has developed over many years. On the one hand, you can argue we need to give the money that is needed to the countries which have higher level of debt. At the same time, you have the problem of governance. You have to walk a fine balance here.”
The FTSEurofirst 300 index of top European shares provisionally ended 2.7% lower after falling as much as 4% to a one-week low earlier in the day. The index hit a 26-month closing low in late September and is down nearly 21% so far this year.
