Shares hit two-month low

THE Australian stock market fell the most in almost two months as the ongoing troubles in the Eurozone spooked investors. Australia's major market indices fell around three per cent after talks collapsed in Greece on forming a new government and Italian government bond yields spiked above seven per cent as investors lose faith in the country's ability to repay its debt. At 1039 AEDT, the benchmark S&P/ASX200 index was down 127.8 points, or 2.94 per cent, at 4,218.3, while the broader All Ordinaries index dumped 122.8 points, or 2.79 per cent, to 4,283.4. The All Ords fell the most since September 12. The December share price index futures contract was 105 points lower at 4232 points, with 15,316 contracts traded. CMC Markets chief market strategist Michael McCarthy said political bunfights in debt-ridden Greece and Italy were behind the falls on the Australian market today. "In spite of the fact that it is as clear as day that action is required here, we're going into another European gab-fest,'' Mr McCarthy said. "The problem for the last 21 months has been the complete inability of the political leaders to deliver on the commitments they make publicly. "The markets are running out of patience.'' Just five stocks rose among the ASX 200. On Wall Street on Wednesday, the benchmark Dow Jones Industrial Average fell almost 400 points, after Italy's borrowing costs soared and the talks collapsed in Greece. The Dow Jones Industrial Average closed down 3.2 per cent at 11,780.94 while the broader Standard & Poor's 500 index lost 3.67 per cent to 1,229.1. The Nasdaq Composite index dropped 3.88 per cent to 2,621.65. In local news on the Australian market on Thursday, Insurance Australia Group was off 12 cents at $3.03 after it estimated that claims from floods in Thailand will cost at least $50 million. Ports and rail operator Asciano dipped 6.5 cents to $1.425 after it said it had performed well in uncertain economic conditions but warned it would be affected by a fall in economic activity. Property group Westfield Group weakened 17 cents to $7.88 after it sold its 75 per cent stake in the Broadmarsh shopping centre in Nottingham in the United Kingdom for STG55 million ($A86.86 million). Telstra was down four cents to $3.09 as it completed the issue of a 750 million euro ($A1.01 billion) bond issue, saying demand was strong. National turnover at was 487 million shares worth $1.34 billion.