Overnight Markets Weak On Greek Default Worries| March 7, 2012

The Australian equity market is pointed to for heavy losses at the start of trading day after overnight markets added sharp losses on fears of a Greek default.

The Dow finished the session down 210 points at 12750 while the S&P500 index finished the day down 21 points at 1343.36. Earlier in the session German stock index the Dax (see above chart) fell over 3.7 percent and closing at 6613.50.

The euro declined to a two week low against the USD after a report showed that the region’s economy contracted last quarter adding to signs the European debt crisis is hindering global growth. The EURUSD has traded down from overnight highs of 1.3206 to recent lows 1.3104

Gold traded down from overnight highs 1703.50 to recent five week lows of 1663.20 as the USD rallied eroding demand for the metal as an alternative investment.

WTI crude oil dropped to a two week low as the European Union offered to restart negotiations with Iran over its nuclear program. WTI crude traded down from yesterday highs of 107.01 to recent lows of 104.76.

The Volatility Index which is widely considered the best gauge of fear in the market has jumped over 16 percent to close at 21.1.

Last Traded
SPI 200 future 4145
S&P500 Index 1343.36
Dow Jones 12750
FTSE 100 Index 5765.80

Last Traded
Gold 1672.18
Oil (Nymex) 104.85

Last Traded
AUDUSD 1.0550
EURUSD 1.3117
GBPUSD 1.5718
USDJPY 80.81
Bloomberg, Dow Jones News