NAB drags local stocks down 3pc

Staff writers | July 25, 2008 THE Australian stock market had fallen by 3 per cent by early afternoon after a National Australia Bank credit warning. The benchmark S&P/ASX 200 Index was down 158.7 points, or 3.09 per cent, at 4985.5, off an earlier session low of 4974.9. The broader All Ordinaries was down 140.8 points, or 2.71 per cent, at 5047.6. National Australia Bank said it had taken an additional provision of $830 million on its exposure to a portfolio of complex credit derivatives due to the credit crisis. Wall Street added to the woes, suffering steep losses overnight after weak US data showed the housing market had not yet reached its bottom and jobless claims rose. A record $9.1 billion quarterly loss by Ford also stunned traders. In Europe, business activity in the eurozone fell in July to the lowest level since... [read full story]