18 Nov 2008

European shares down

8:32 am on 18 November 2008

European shares further declined on Monday amid mounting concerns about a global recession.

The pan-European FTSEurofirst 300 index ended 2.6% lower at 837.41 points. The index is down more than 44% to date this year.

Banking shares and mining companies were down.

Sentiment worsened after reports that Japan, the world's second-largest economy, is now in recession.

The euro zone is also in formal recession, with two consecutive quarters of contraction.

Across Europe: Germany's DAX lost 3.3% and France's CAC fell 3.4%. In Britain, the FTSE 100 fell 2.7%.

On Wall Street, by 1:30pm, the Dow Jones industrial average was down 62.69 points, or 0.74%, at 8,434.62.

Standard & Poor's 500 Index was down 4.84 points, or 0.55%, at 868.45. The Nasdaq Composite Index was down 10.36 points, or 0.68%, at 1,506.49.

Other markets

In Australia, the market closed down 2.5% on Monday.

The S&P/ASX200 index was down 95.1 points, or 2.54%, at 3,653, while the All Ordinaries index lost 86.5 points, or 2.32%, to 3639.5.

On the Sydney Futures Exchange, the December share price index futures contract was 62 points lower to 3,695 on a volume of 28,232 contracts.

In New Zealand, the NZX 50 index slipped 25 points to 2741 on turnover of $47 million.

Telecom closed down 1 cent to $2.42; Contact Energy remained unchanged at $7.25, and Fletcher Building dipped 13c to $5.64.

Rakon lost 14c to close at $1.11. Infratil lost 3c to $1.81 after its half-year results.

The New Zealand dollar was trading at US55.37 cents, 85.49 Australian cents, 37.48 pence, 53.99 yen and 0.4398 euro. The Trade Weighted Index was 56.76.