Barratt Developments down 9 percent on housing data
Equities markets in Europe saw significant declines Tuesday as investors were disappointed that the announcement of a new US government plan to rescue the financial sector there did not contain more details.
The FTSE 100 was down 2.19 percent to 4,213.08 in London, while the FTSE 250 dropped 2.46 percent to 6,495.66.
Home builders were lower after the Royal Institution of Chartered Surveyors said UK house prices dropped in December from November, with Persimmon (LSE: PSN) falling 8.1 percent while Barratt Developments was down 9.2 percent on the session.
The FTSE Eurofirst 300 fell 2.38 percent to 810.34 while the IBEX was down 2.18 percent to 8,397.3, the Dax was 3.46 percent lower to 4,505.54 and the CAC-40 dropped 3.65 percent to 3,020.75.
Asia-Pacific region markets were mixed on the session.
In Tokyo, the Nikkei 225 was down 0.29 percent to 7,945.94 and the Topix index was 0.1 percent lower to 778.1 but the Mothers market of small and mid-caps added 0.29 percent to 320.51 on light trade ahead of a Wednesday day off for the markets in recognition of National Foundation Day.
India’s Sensex was up 0.66 percent to 9,647.47 while the Taiex added 0.7 percent to 4,526.1, the Hang Seng was 0.81 percent higher to 13,880.64, the Straits Times Index advanced by 1.25 percent to 1,703.29 and the Shanghai Composite gained 1.82 percent to 2,265.16.
In South Korea, however, the Kospi was down 0.32 percent to 1,198.87 while in Australia the Sydney Ordinaries fell 0.5 percent to 3,428.6 and the S&P/ASX200 dropped 0.57 percent to 3,488.7.
Banks and insurers were lower on Wall Street after the announcement of the US government plan to rescue the US financial sector.
The Dow Jones Industrial Average was down 4 percent to 7,940.41 in afternoon trade in New York while the Nasdaq Composite was 3.46 percent lower to 1,536.5 and the S&P 500 had dropped 4.18 percent to 833.52.
The announcement of the US rescue plan by US Treasury Secretary Timothy Geithner also affected the oil and metals markets, sending crude oil and copper prices lower on demand concerns in case the plan isn’t enough to right the economy while taking precious metals higher as investors worry that bailout spending will boost inflation.
Grains prices were lower on the Chicago Board of Trade.
The dollar weakened on worries related to the bailout, while the pound was down on more bad news from the property sector.