Australian stocks have sunk to their lowest level this year as investors begin to panic over the crisis in Europe after reports of a run on Spanish banks.
US stocks have closed with losses well above one per cent as negative news continued from Europe, with Greece's woes deepening and Spain falling into recession.
Greece's exit from the euro zone would not have the same impact on the world as the events that led to the global financial crisis (GFC), the head of Commonwealth Bank says.
US stocks gave up early gains on positive US economic data to sink lower Wednesday as worries over Greece's future in the euro zone hit investor sentiment.
Australian stocks have opened more than one per cent lower amid broad based declines as local market players took their cues from a poor night on Wall Street and ongoing troubles in Europe.
US stocks have sunk as speculation about Greece's potential exit from the eurozone continues after the country's political parties failed to forge a government.
The Australian dollar rose back slightly above parity with the US dollar after a boost in late afternoon trade on official data showing Germany avoided a recession.
A drop in the Australian currency below parity with the US dollar and a recent cut in domestic interest rates will help manufacturers, the Australian Industry Group says.
Slowing economic growth, inflation, and interest rate hikes by commercial banks gave the Reserve Bank of Australia (RBA) the impetus to cut the cash rate in May.
Australian stocks have opened lower, with local market players taking their cues from a poor night on Wall Street as the political gridlock in Greece dominated trading.
US stocks have closed firmly in the red as Greece's political stalemate and Spain's banking problems drove new fears about the strength of the eurozone.
The once-mighty Aussie dollar is losing purchasing power as it slips below its US counterpart, but TVs and electrical gadgets are likely to stay dirt cheap - for a while at least.
Local stocks have opened firmer with market players buoyed by the Chinese central bank's actions to support lending in one of Australia's key trading partners.
US stocks took a beating last week, only to face more turbulence from Europe as Greece grapples with rising political uncertainty that could cost the country's crucial EU-IMF bailout.
Fears of a new financial crisis in the wake of Greece's elections have dragged the Australian dollar perilously close to parity with its US counterpart.
The High Court will hear a class action by customers of the ANZ Bank alleging it charged excessive fees for overdrafts, overdrawn accounts, dishonour fees and over-the-limit credit card accounts.
