Sovereign debt worries hammer stocks

Debt default worries for Greece, Portugal, and Spain sent stock markets round the world into a tail spin, with the Dow industrials down 2.61% (268 pts) to 10,002. Commodities fell heavily with oil falling 4% to $73 and gold also down 4% or $46 to $1064 as the dollar strengthened with a flight back to safe haven currencies.

After seeing Coal of Africa (CZA) gain over 20% in one day on the Vele mine approval, the stock price has given back its gains over the last 2 days and now stands barely higher at 130p, having risen to as high as 148p. Contrarian Investor was caught out on this one, and though tempted to take some profits on the Vele news, held out for a sell close to 170p. As they say, "A profit, is never a profit until you've banked it!". However, prospects for CZA look very solid with Mooiplatts ramping up production and Vele mine on start up.

A contrarian buy on the Dow Industrials initiated last night with the U.S. unemployment data due at 1.30pm UK time.