NEW YORK: Global stock markets and the euro fell on Tuesday due to worries about a global growth slowdown and whether enough private investors would participate in a Greek debt restructure to enable it to avert a disorderly default.
Concerns that Greece and its bondholders could not meet a Thursday deadline for a debt swap fueled selling in gold and buying of US Treasuries, German Bunds, the US dollar and other perceived safe-haven investments.
Oil prices fell from recent highs as news of higher output from Iraq and Saudi Arabia mitigated fears over reduced supply from Iran, which might retaliate against US sanctions.
Stocks, oil and other growth-oriented assets also succumbed to selling pressure after remarks on Monday from Chinese Premier Wen Jiabao, who cut the nation's growth target to by half a point to 7.5 percent for 2012, fanning concerns about the pace of global growth.
"With the fresh uncertainties coming into play about Greece and after the effects of the Chinese slowdown, investors are taking a defensive posture," said Andre Bakhos, director of market analytics at Lek Securities in New York.
MSCI's all-country world equity index fell 1.05 percent, its biggest one-day drop in more than 3 weeks.
Shortly after their open, the Dow Jones industrial average was down 123.59 points, or 0.95 percent, at 12,839.22. The Standard & Poor's 500 Index was down 13.64 points, or 1.00 percent, at 1,350.69. The Nasdaq Composite Index was down 32.50 points, or 1.10 percent, at 2,917.98.
The FTSEurofirst 300 index of top European shares fell 0.9 percent, while Tokyo's Nikkei ended 0.6 percent lower.
In the currency market, the euro fell 0.7 percent against the dollar at $1.3120, its lowest level in more than two weeks, while the dollar index was up 0.6 percent at 79.78, its highest since Feb 16.
Benchmark 10-year Treasury notes rose 15/32 in price at 100-13/32 with a yield of 1.95 percent. German Bund futures were up 39 basis points at 140.24, within striking distance of their contract high.
Brent crude oil futures for April shed $1.73 at $122.07 a barrel. In New York, the April NYMEX crude contract declined $1.50 at $105.22 a barrel.
Spot gold prices fell 2.38 percent at $1,666.16 an ounce, its lowest level in about five weeks.
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