Thursday, March 10, 2011

Dow sinks below 12,000 on Saudi, economy fears

Fears about the economy and unrest in Saudi Arabia darkened the outlook for equities, pushing major indexes below key technical levels.

The Dow Jones industrial average fell 228.48 points, or 1.87 percent, to end at 11,984.61. The Standard & Poor's 500 Index lost 24.91 points, or 1.89 percent, to end at 1,295.11. The Nasdaq Composite Index dropped 50.70 points, or 1.84 percent, to close at 2,701.02.

European shares fell to their lowest closing level so far this year, on sovereign debt and economic recovery concerns.

The pan-European FTSEurofirst 300 index of top shares closed 1.1 percent lower at 1,131.78 points.

Japan's Nikkei average fell to a five-week low, breaking below a key support level after an overnight rise in oil prices and uncertainty about the Middle East sparked futures selling.

The benchmark Nikkei ended the day down 1.5 percent, or 155.12 points, at 10,434.38. It fell to a five-week low, breaking below its 13-week moving average, a key support level, after data showed China ran a surprise trade deficit of $7.3 billion in February, triggering some jitters about the outlook for global growth and pushing Chinese stocks lower.

The broader Topix index fell 1.4 percent to 930.84.