17 May 2012

Wall Street falls on Europe worries

9:56 am on 17 May 2012

US stocks and the euro slid on Wednesday on news that some Greek banks face emergency funding needs.

The European Central Bank stopped funding operations for some Greek banks as they are undercapitalized, the bank said.

The funding needs highlighted the weak state of the banking sector in Greece, where many Greeks are withdrawing money out of fear their country may soon leave the euro zone.

The euro slid and shares in Europe closed lower as worries mounted over the stability of the euro zone.

On Wall Street, the Dow Jones industrial average closed down 33.45 points (0.26%) at 12,598.

The Standard & Poor's 500 Index fell 5.86 points( 0.44%) to 1,324 while the Nasdaq Composite Index shed 19.72 points( 0.68%) to 2,874.

US stocks were also affected by minutes from a Federal Reserve meeting which showed several members of the US central bank's policy-setting committee had indicated that additional monetary policy accommodation could still be necessary.

The euro slid for a fourth straight session, dropping to a four-month low against the US dollar, closing at $US1.2713.

Crude oil futures tumbled and Gold sank to a 2012 low before paring losses