US stocks decline on fresh financial woes

June 18th, 2008 - 8:35 am ICT by IANS  

New York, June 18 (DPA) US stocks were led lower Tuesday by financial firms still struggling with the effects of the ongoing mortgage crisis. Goldman Sachs said banks and lenders may need to raise another $65 billion to combat further writedowns in mortgage-related assets. Plunging home prices have prompted a record number of mortgage defaults by US homeowners since the summer of 2007, sparking a widespread crisis in the financial industry.

Shares of all 23 banking institutions in the Standard & Poor’s 500 index declined.

Home builders also fell after new-home construction figures fell 3.3 percent in April to a 17-year low, the Commerce Department said.

The blue-chip Dow Jones Industrial Average lost 108.78 points, or 0.89 percent, to 12,160.3. The broader S&P 500 was down 9.21 points, or 0.68 percent, to 1,350.93. The technology-heavy Nasdaq Composite Index fell 17.05 points, or 0.69 percent, to 2,457.73.

The US currency edged lower against the euro to 64.49 euro cents from 64.65 euro cents Monday and fell against the Japanese currency to 107.98 yen from 108.23 yen.

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