June 20, 2013
Global shares plunge on Spain bailout speculation
US stocks fell for a second straight session on Monday, as Spain appeared closer to needing a national bailout and poor corporate results weighed on the market.
The Dow Jones industrial average fell 101.11 points, or 0.79 percent, to 12,721.46 at the close. The Standard & Poor's 500 Index declined 12.14 points, or 0.89 percent, to 1,350.52. The Nasdaq Composite Index shed 35.15 points, or 1.20 percent, to close at 2,890.15.
European stocks sank, with a key blue-chip index tumbling to a three-week low and piercing through a major support level, hurt by mounting fears that Spain could soon become the fourth euro zone member to request a full bailout.
The FTSEurofirst 300 index of top European shares closed 2.4 percent lower at 1,024.27 points, while the euro zone's blue-chip Euro STOXX 50 index dropped 2.6 percent to 2,179.31 points, breaking below its 50-day moving average, a key support level.In Asia, Japan's Nikkei share average posted its biggest fall in a month and a half as it sank to a six-week low on Monday, hit by renewed fears that Spain may need a full-blown bailout and by the subsequent rise in the yen.
The Nikkei shed 1.9 percent to 8,508.32, the lowest close since June 8. The broader Topix index fell 1.8 percent to 720.62, having fallen in 11 of the past 12 sessions.