Marcus Evans Group | Worldwide Headquarters | American Offices | Latin America | European Offices | African / Asian Offices

Dow Jones falls 95 points in early trading as eurozone crisis and high oil prices unsettle investors

Wall Street follows European markets lower after unconvincing G20 statement at the weekend

It’s definitely a risk-off day. An opening fall on Wall Street has helped accelerate falls on the European markets after an inconclusive G20 meeting at the weekend and stubbornly high oil prices.

The Dow Jones Industrial Average is down more than 95 points in early trading, with the FTSE 100 now 67.09 points lower at 5868.04 and French and German markets both down more than 1%.

As the German parliament votes on whether to back the €130bn Greek bailout – it probably will but not without some disagreements – investors are nervous once more about the eurozone crisis. Comments from the G20 suggesting that the IMF’s firepower to deal with the current situation was unlikely to be increased unless Europe raised the amount of its own firewall – something the Germans are reluctant to embrace – has unsettled sentiment. Joshua Raymond, chief market strategist at City Index said:

Clearly the statement from the G20 meeting is concerning enough to convince investors to cash in their gains and reduce exposures on European stocks. The statement indicates that the appetite for the G20 countries to increase the IMF’s fiscal power is not a foregone conclusion, whilst the stubbornly high oil prices have also started to escalate concerns that this could derail growth prospects due to escalating business costs.

Brent is currently around 1% lower at just over 4 a barrel, but that is still high enough to cause concern. Raymond also points out that the FTSE volatility index – a key gauge of investor fear – has risen around 11%, suggesting further market falls are possible. © 2012 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds