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GLOBAL MARKETS-U.S. worries hit stocks, commodities and the euro
November 28, 2012 / 3:15 PM / 5 years ago

GLOBAL MARKETS-U.S. worries hit stocks, commodities and the euro

* Investors focus on U.S. fiscal risks, Greek uncertainty
    * Stocks fall around the world
    * Commodities ease on worry over U.S. growth
    * Euro down, dollar falls vs yen

    NEW YORK, Nov 28 (Reuters) - Stocks, commodities and the
euro fell on Wednesday on investor frustration with a lack of
progress in U.S. budget talks and as  doubts crept in over
Greece's new debt deal. 
    Lack of progress in the U.S. budget talks compounded
investor caution about the plan agreed late Monday by the EU,
ECB and IMF to reduce Greece's debts. The deal opened the way
for more aid to Athens to avoid a chaotic default, but details
remain unclear and analysts worry it will not do enough to make
Greece's debt viable. 
    U.S. Senate Majority Leader Harry Reid expressed
disappointment on Tuesday over the progress of talks between
Democrats and Republicans on avoiding the so called "fiscal
cliff" consisiting of $600 billion in automatic tax rises and
spending cuts due to start early next year.
     Chief executives from top U.S. corporations, including
Goldman Sachs, Deloitte LLP, and Caterpillar Inc,
will meet with President Barack Obama on Wednesday to discuss
U.S. fiscal problems, the White House said. 
    "These CEOs know that the market will selloff without any
resolution, so I think it's encouraging that they are meeting
with the President. But more importantly, the market would want
to see them actually meeting with the congressional leadership,
those that are actually making negotiations and compromises,"
said Sal Arnuk, co-founder at Themis Trading at Chatham, New
    The Dow Jones industrial average was down 85.89
points, or 0.67 percent, at 12,792.24. The Standard & Poor's 500
Index  was down 10.83 points, or 0.77 percent, at
1,388.11. The Nasdaq Composite Index  was down 25.13
points, or 0.85 percent, at 2,942.66. 
    The MSCI index of global stocks was down 0.8
    In currency markets, the euro was down 0.6 percent to
$1.28917 as some traders bet recent gains made in the run up to
the Greek deal were too far, too fast. 
    Commodity markets also reflected the worries of a possible
U.S. budget crisis and how this could tip the world's biggest
economy into recession.
    Gold fell for a third straight day, copper 
dropped from a three-week high and Brent crude lost
$1.15 cents to $108.70 per barrel.   
    U.S. crude oil futures fell 1.6 percent to $85.56.
    U.S. data did nothing to improve sentiment. New U.S.
single-family home sales fell slightly in October and the
government revised sharply lower its estimate for the prior
month's sales, casting a small shadow over what has been one of
the brighter spots in the U.S. economy..

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