Alex Tarrant presents 90 seconds at 9 am in association with BNZ. Stock markets fell heavily overnight on concerns about the European debt crisis, with the Dow down 3.6% in late trade. The S&P 500 also fell, and is now down by more than 10% since its high in April, sparking talk a correction in stock markets is certainly underway, Reuters reports. Concerns are that the debt crisis will choke economic growth and could lead to a double-dip global recession, Bloomberg reports:
The S&P 500 was down more than 10 percent today from an April 23 high on concern measures aimed at avoiding a Greek default will choke economic growth. In a worst-case scenario, contagion could spark another credit crunch reminiscent of the September 2008 financial collapse, leading to a double-dip global recession, according to New York University professor Nouriel Roubini.
Oil prices also slumped overnight, Reuters reports. It was a rough night for the New Zealand dollar, which started the night at just under 68.2 USc, but fell to as low as 66.2 USc. After a brief recovery above 67.5 USc, the dollar fell again in the early morning to about 66.6 USc. In New Zealand, the broad reaction to yesterday's budget seemed postive. You can follow reactions from business leaders here.