Wall Street continues slide on Europe woes

Stocks tumbled again on Wednesday, leaving the benchmark S&P 500 on pace for a sixth straight decline, as frustration with the euro zones debt crisis coupled with weak Chinese factory data sank investor sentiment.Debt problems that have plagued Europe and the United States have pressured markets, knocking the S&P down more than seven per cent over the last six sessions.Reuters reported that world stocks hit their lowest in six weeks on Wednesday, as weak demand in a German bond auction heightened fears that the euro zone crisis would worsen, although a German official downplayed those worries."Clearly Europe is continuing to drive the bus. The market is exhausted, it is tired of the lack of leadership on both sides of the pond, it is tired of the continuing drama that is playing out there that no one seems to be paying attention to," the Managing Director, ICAP Equities, New York, Ken Polcari said."The path of least resistance is lower because the market is starting to say to you it is getting disgusted with the lack of any concrete plan. Whether it is the ECB monetising the debt, whatever it is, the market is not getting anything."Data showed Chinese manufacturing shrank the most in 32 months in November, intensifying concerns about a global economic slowdown. United States crude oil fell by 2.6 per cent on fears of reduced demand from China, the worlds number two economy.US data painted a mixed picture and showed little reason for optimism. New unemployment benefit claims rose last week and consumer spending barely increased in October, while other reports showed new orders for a range of long-lasting manufactured goods rose.The Dow Jones industrial average dropped by 192.65 points, or 1.68 per cent, to 11,301.07. The Standard & Poors 500 Index fell by 21.25 points, or 1.79 per cent, to 1,166.79. The Nasdaq Composite Index lost 50.51 points, or two per cent, to 2,470.77.All 10 S&P sectors were negative, with financials among the biggest decliners over concerns about exposure to European debt. JPMorgan Chase and Company dropped by 3.1 per cent to $28.49 and Citigroup Incorporated lost 4.4 per cent to $23.38.Economically sensitive stocks, such as energy and commodity-related issues were also lower. The PHLX oil service sector index dropped by 3.2 per cent and the S&P materials sector fell by 2.3 per cent. Schlumberger Limited slipped by 3.3 per cent to $66.66 and DuPont dipped by 2.2 per cent to $44.42.
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