A roundup of trading on major world markets:
NEW YORK - US stocks have sunk as speculation about Greece's potential exit from the eurozone continues after the country's political parties failed to forge a government.
The Dow Jones Industrial Average closed down 63.35 points, or 0.50 per cent, at 12,632.00.
After an initial boost from the prospect of new Greek elections called to break the stalemate, the Dow lost ground.
News that some 700 million euros ($A905.68 million) were withdrawn from Greek banks on Monday ignited fears about a concerted run on the country's banks.
The S&P 500 fell 7.69 (0.57 per cent) to 1330.66.
The tech-heavy Nasdaq got a boost as Groupon earned analyst upgrades and fever built for Facebook's looming IPO.
But the index was down 8.82 points (0.30 per cent) to 2893.76.
LONDON - European stock markets have fallen and the euro has dropped sharply on news that Greece faces new elections after last-ditch talks failed, just as Francois Hollande became France's new president.
At the close, London's benchmark FTSE 100 index of top companies lost 0.51 per cent to 5437.62 points while in Frankfurt, the DAX 30 dropped 0.79 per cent to 6401.06 points and in Paris the CAC 40 fell 0.61 per cent to 3039.27 points.
Milan's FTSE Mib slumped 2.56 per cent to 13,311 points, on news that Moody's has downgraded the ratings of 26 Italian lenders amid fears over their exposure to the debt crisis.
Madrid's IBEX 35 index slid 1.6 per cent to 6700.70 points, as the nation's troubled banking sector remained under intense pressure.
In foreign exchange trade, the European single currency dived below $1.28 to $1.2771 -- the lowest point since January 18. That compared with $1.2842 shortly before 1315 GMT (2315 AEST) on Tuesday.
HONG KONG - Asian shares mostly fell while the euro hit a four-month low amid growing concern about Greece's eurozone future.
Dealers are also keeping an eye on Spain as the country's banking sector comes under huge pressure while Italy saw the ratings of 26 of its lenders downgraded amid fears over their exposure to the region's debt crisis.
Tokyo closed 0.81 per cent, or 73.10 points, lower at 8,900.74 while Sydney fell 0.71 per cent, or 30.7 points, to 4,266.3 and Seoul shed 0.77 per cent, easing 14.77 points to 1,898.96.
Shanghai was down 0.25 per cent, or 5.88 points, to end at 2,374.84 but Hong Kong was up 0.81 per cent, or 159.27 points, at 19,894.31 as it rebounded from eight successive losses.
WELLINGTON - The NZX 50 Index dropped 20.441 points, or 0.6 per cent, to 3534.915.
