World sharemarkets took a negative cue yesterday from the United States bourses' reaction to a slight gain in oil prices and more uncertainty about bail-out funding for stricken mortgage companies.
The three major indexes in the US each closed down, with the Dow Jones losing 239 points at 1.91%, the Standard & Poors 500 1.86% or 23 points down and Nasdaq Composite down 46 points or 2% down.
The Australian All Ords index and Standard & Poors were both down about 1.2% during trading late yesterday while the New Zealand SE50 index finished down 0.6%, or 21.07 points at 3235.50 yesterday.
ABN Amro Craigs broker Peter McIntyre said there was more US investor concern about how the Federal Reserve would provide promised funding, if necessary, to beleaguered mortgage brokers Fannie Mae and Freddie Mac which hold about $NZ6.5 trillion, or 50%, of the US mortgage market.
While oil had come off its recent highs and had beentrading down for the past week into the low $US120 per barrel range - down from $US147 almost three weeks ago - it surged a little yesterday.
"Bear markets will often have rallies after sell-offs, creating plenty of volatility," Mr McIntyre said.
Only the French CAC market closed up, 0.5%, with the German Dax down 1.33 %.
The Asian bourses all traded down - Japan's Nikkei by 1.91%, Korea's Kospi 2.99%, Singapore Straits Times 1.16% and Hong Kong's Hang Seng 2.35%.
