The Australian sharemarket continued its downward trend in June, with the All Ordinaries Index falling 2.9% to close at 4,324.8 points. International markets were also down as European government debt concerns continued to weigh on the market.
The Dow Jones Index closed down 3.6%, the FTSE closed down 5.5% and the Nikkei 225 closed down 4.0% for the month. The Hang Seng bucked the global trend and increased by 1.8% in the month.
US stocks fell on Wednesday in the final session of the second quarter as a report on private-sector jobs disappointed investors and Moody's warned that it may cut its credit rating on Spain. Alcoa, Walt Disney and Hewlett-Packard were among the decliners.
The Dow Jones Industrial Average dropped 96.28 points (0.98%) to 9,774.02. The Dow fell 3.58% for the month, its second-consecutive monthly drop. For the quarter, it tumbled 9.97%, breaking a streak of four quarterly gains and marking the measure's worst second-quarter since 2002.
Growth in house prices has slowed in recent months. The RP Data-Rismark capital cities home value index rose 0.6% in May from April, a pace well down on that seen at the start of 2010.
Outside of the capital cities, house prices fell 0.9% in May. RP, said it was the second successive month showing slowing price growth, suggesting the housing sector is in transition. Also, the Housing Industry Association reported new home sales fell 6.4% in May from April, more evidence that demand has weakened sharply.
US stocks tumbled broadly on Tuesday as renewed concerns about global growth sent investors away from companies such as Boeing, Alcoa and Caterpillar, toward the safety of the US dollar and Treasuries.
The Dow Jones Industrial Average dropped 268.22 points (2.65%) to 9,870.30, its second-lowest close this year. Tuesday also represented the Dow's biggest one-day drop since June 4. It is now down 5.35% for the year to date.
US stocks closed slightly lower on Monday, with Boeing among the decliners as investors grew concerned about the potential impact on global growth from the Group of 20's pledge to cut deficits. Still, a Supreme Court decision lifted tobacco companies including Reynolds American and Altria Group.
The Dow Jones Industrial Average fell 5.29 points (0.05%) to 10,138.52. JP Morgan Chase was the measure's worst performer with a decline of 90 cents (2.3%) to $38.54. Boeing slipped $1.47 (2.1%) to $67.30, and Alcoa dropped 20 cents (1.8%) to $11.03.
A recovery in new home building is set to stall in 2011, according to a report.
The Housing Industry Association, which represents home builders, said housing starts are likely to fall 3% in 2011, reversing part of the expected 20% rise in 2010, ensuring the industry continues to build homes at a rate far below what is being demanded.
In its quarterly National Outlook Report it said Australia needs to build over 190,000 dwellings in 2010 alone to meet underlying demand. Current estimates put total building at 165,940 houses.
US blue-chip stocks slipped on Friday, weighed down by consumer-staples companies such as Coca-Cola as investors grew more concerned about consumer spending. However, the Standard & Poor's 500 index eked out a small gain, led by financial stocks including JP Morgan Chase and Bank of America, as an agreement on a financial-regulation overhaul removed some of the uncertainty that had been weighing on the sector.
US stocks skidded lower on Thursday as uncertainty over the final shape of the financial-overhaul bill weighed on JP Morgan Chase and Bank of America and disappointing earnings from Bed Bath & Beyond sent a wide swath of retail stocks tumbling.
Falling for a fourth straight session, the Standard & Poor's 500-share index posted its longest losing streak in seven weeks, since the four-day period that ended May 7. The S&P 500 fell 18.35 points (1.68%) to 1,073.69.
Business confidence edged down in the second quarter of 2010 compared with the previous quarter, a private sector survey showed.
The Westpac Australian Chamber of Commerce & Industry expected composite index fell to 56.6 from 57 in the first quarter. In the prior survey, expectations had been for a reading of 64.7 for the second quarter.
US blue-chip stocks eked out a tiny gain on Wednesday after the Federal Reserve kept interest rates at record lows, supporting a rise in JP Morgan Chase, but energy companies Chevron and Exxon slid as oil-prices fell.
The Dow Jones Industrial Average edged up 4.92 points (0.05%) to 10,298.4, paring an early jump after the Fed's statement prompted the euro to strengthen.