The Australian equities are pointed to a weak start to the trading day as US stocks tumbled for a second consecutive session, as Greece's plans for a vote fuelled worries that the euro-zone bailout plan might fall apart.
The Dow (see above chart) fell 297.05 points to finish the session at 11657.96. The Dow has dropped 4.7% over the last two trading days. The S&P500 index sank 35.02 points to close at 1218.28. The index has now declined 5.2 per cent over the last two days.
The euro weakened for the third straight day touching the lowest level in almost three weeks after the Greek Prime Minister George Papandreou pledged to put the European Union's latest crisis accord to a vote risking default if tis rejected by the voters. EURUSD traded down from yesterday highs of 1.3859 to lows of 1.3603.
Gold fell to a one week low of 1681 as worsening prospects for Europe's debt crisis led to a rally in the USD dollar eroding demand for the precious metal as an alternative investment before recovering in late trade and settling.
The volatility index rallied over 16 per cent to settle at 34.77 due to ongoing global sovereign debt fears.
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