The Australian equities are pointed to a weaker start on the open today as hopes for a solution to the European debt crisis faded following the cancellation of a scheduled meeting for the European Union lawmakers.
The Dow fell 207 points to close 11706.62 while the S&P500 index lost 25.14 points to finish the trading day at 1229.05. Each of the index's 10 sectors dropped.
The selloff followed a report that a Wednesday meeting scheduled for the EU finance officials were cancelled, although a scheduled summit among European leaders seeking a way out of the debt crisis is still planned.
The yen once again touched a post World War II high against the USD and rallied against the majority of its trading counterparts as investors sought cover in the currency as a safe haven. USDJPY (see above chart) traded down from overnight highs of 76.32 to as low 75.74.
WTI crude oil continued to trade up and settled at 93.17, this is its highest levels in nearly three months on strong fund buying encouraged by tightening US oil inventories.
Gold traded up to one month highs of 1705.22 as the precious metal broke ties with riskier assets due to the uncertainty over the upcoming European Union summit.
The volatility index rallied over 10 per cent to close the session above 32.00.
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