2/10/2012 9:52 AM ET
(RTTNews) - Stocks moved sharply lower at the start of trading on Friday, as traders expressed renewed concerns about the financial situation in Greek. The major averages showed notable moves to the downside after closing modestly higher in each of the three previous sessions.
The major averages have not seen much follow-through on their initial downward move but remain stuck in the red. The Dow is down 102.59 points or 0.8 percent at 12,787.87, the Nasdaq is down 21.00 points or 0.7 percent at 2,906.23 and the S&P 500 is down 10.87 points or 0.8 percent at 1,341.08.
The initial weakness on Wall Street came amid news that European finance ministers were unimpressed with the austerity agreement reached by Greek political leaders on Thursday, calling for an additional 325 million euros in savings.
The other eurozone countries are also calling for guarantees that the measures will be implemented before signing off on a new 130 billion euro bailout for the debt-plagued nation.
A report showing a notable drop in Chinese imports in the month of January has also contributed to the early weakness, with the data raising concerns about the level demand in the communist country.
The worries about Chinese demand have contributed to considerable weakness among steel stocks, with the NYSE Arca Steel Index tumbling by 2.6 percent. Gold stocks are also posting steep losses, moving sharply lower along with the price of the precious metal.
Most of the other major sectors have also moved to the downside, reflecting broad based selling pressure. Electronic storage, railroad, and energy stocks are seeing significant weakness.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Friday. Japan's Nikkei 225 Index fell by 0.6 percent, while Hong Kong's Hang Seng Index ended the day down by 1.1 percent.
The major European markets have also shown notable moves to the downside on the day. While the U.K.'s FTSE 100 Index is down by 0.8 percent, the French CAC 40 Index and the German DAX Index are falling by 1.2 percent and 1.7 percent, respectively.
In the bond market, treasuries have rebounded after coming under pressure in the previous sessions. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 6.9 basis points at 1.978 percent.
by RTT Staff Writer
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