Wednesday, November 9, 2011

Global shares tumble on Italian uncertainty

US stocks tumbled 3 percent in the market's worst day since mid-August as a spike in Italian bond yields signaled the European debt crisis had worsened.

The Dow Jones industrial average was down 389.24 points, or 3.20 percent, at 11,780.94. The Standard & Poor's 500 Index was down 46.82 points, or 3.67 percent, at 1,229.10.

European shares also extended falls, with Italian stocks tumbling and bond yields topping 7%, on concerns about political uncertainty ahead after Italian Prime Minister Silvio Berlusconi said he would step down.

The FTSEurofirst 300 index of top European shares ended down 1.8% at 966.61 points after falling as low as 964.12. It hit a high of 993.44 in early trade.

Italy's benchmark index was down 4.2%.

The Nikkei stock average, on the other hand, rose following news that Italy's prime minister would resign, paving the way for austerity reforms to ease the euro zone's debt crisis, while scandal-hit Olympus Corp skidded another 20% after it admitted it hid losses.

The broader Topix index gained 1.5% to 747.40. Volume was in line with recent levels, with 1.8 billion shares changing hands, compared with today's 1.85 billion shares. About 5 shares rose for each one that fell.