Volatilities in other markets when the DOW plunged almost 1000 points

Offshore overnight

In one of the most dizzying half-hours in stock market history, the Dow Jones industrial average plunged almost 1000 points amid worries about European debt.

The Dow managed to recover two-thirds of its losses before the end of Thursday's Wall Street session, but all major indices closed sharply lower on a day that recalled the market turmoil of the 2008 financial crisis.

There were reports that a technical glitch hastened the selling.

Even so emotions ran high, with traders concerned that Greece's economic problems will hurt other European countries and ultimately, the US recovery.

Only 173 stocks rose on the New York Stock Exchange while 3002 fell.

Volume came to an extremely heavy 2.57 billion shares.

When markets settled, the Dow Jones Industrial Average had fallen 347.80 points, or 3.20 per cent, to 10,520.32 points.

The Standard & Poor's 500 index closed down 37.72 points, or 3.24 per cent, at 1128.15 points.

The Nasdaq composite closed down 82.65 points, or 3.44 per cent, at 2319.64 points.

European stock markets lost ground on Thursday as remarks on the Greek crisis by the head of the European Central Bank failed to reassure anxious investors.

ECB head Jean-Claude Trichet ruled out a Greek debt default and insisted that the problems besetting Greece were different from those faced by Spain and Portugal.

The London FTSE 100 closed down 80.94 points, or 1.52 per cent at 5260.99 points.

The German DAX 30 closed down 50.19 points, or 0.84 per cent, at 5908.26 points.

The French CAC 40 index closed down 79.92 points, or 2.20 per cent, at 3,556.11 points.

Commodities

Oil prices dropped to levels not seen since February on Thursday, as the stock market posted huge losses.

The benchmark crude oil for June delivery contract fell $US2.86 to settle at $US77.11 a barrel on the New York Mercantile Exchange.

Oil hit $US73.71 on February 16 and has lost almost $US10 a barrel since Monday.

Crude was lower at noon and the price slide picked up speed as the stock market tumbled and Investors flew to safer havens in gold and bonds.

Europe's debt problems got much of the blame for the drop in stocks and commodities. The ongoing crisis also has undermined the euro and strengthened the US dollar.

Commodities priced in US dollars, such as oil, become more expensive for investors holding euros as the US dollar rises.

In London, Brent crude gave up $US2.78 to settle at $US79.83 on the ICE futures exchange.

Gold for June delivery rose $US22.30 to settle at $US1197.30 an ounce on the Comex division of the New York Mercantile Exchange.

Silver for July delivery fell 1.9 US cents to settle at $US17.515 per fine ounce.

Copper for July delivery settled down 3.45 US cents at $US3.1170 per pound.

AAP, with Chris Zappone BusinessDay

http://www.smh.com.au/business/markets/stocks-set-to-plunge-after-us-freefall-20100507-uhc0.html