Ford losses weigh on global markets
Posted
United States stocks have fallen more than 2 per cent after disappointing economic news and a big slump in profit from Ford, the country's third largest car-maker.
Ford shares dropped the most since September 2001 after it reported a record loss for the quarter of more than $9 billion, almost matching regional bank Wachovia's quarterly loss earlier this week.
Building stocks also declined as existing home sales fell to the lowest level in a decade.
The New York Attorney-General has filed a civil case against investment bank UBS accusing it of deceptively selling auction rate securities to customers.
UBS says it will vigorously defend the charges.
On Wall St, the Dow Jones Industrial Average lost 283 points to 11,349, while the Nasdaq composite index fell 46 points to 2,280.
European stocks also suffered after bad news from local car-makers.
But Swiss bank, Credit Suisse, posted a smaller than expected fall in earnings.
In London, the FT-100 index fell nearly 2 per cent or 88 points to 5,362.
In yesterday's trade, local financial stocks rose after the US House of Representatives approved a rescue plan for troubled mortgage finance providers, Fannie Mae and Freddie Mac.
The All Ordinaries index put on 27 points to 5,188 and the ASX 200 gained 39 points to 5,144.
Gold producer Newcrest Mining lost more than 5 per cent after it said gold production had dropped in the June quarter.
Overnight on the Sydney Futures Exchange, the Share Price Index 200 contract fell more than 2 per cent to 5,036.
The 10-year bond contract was up seven points to 93.69.
About 7:00am AEST, the Australian dollar was buying around 95.88 US cents.
On the cross currencies it was worth 61.13 euro cents, 102.75 Japanese yen, 48.26 pence Sterling and against the New Zealand dollar it was at $1.29.
Gold jumped to $US927.44 an ounce and West Texas crude oil rose $1 to $124.74 US a barrel.
