US Midday: New York suffers from Dutch woes

-US markets track Europe down

-Dutch government collapses, puts pressure on bonds

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Dow: -1.01%

S&P 500: -1.02%

NASDAQ: -1.21%

US investors have been battered by ill winds from both west and east. In Europe the Dutch government has collapsed after the coalition parties disagreed on austerity measures.

Further enhancing the "risk-off" mentality was the Markit Economics services and manufacturing purchasing managers index for Europe. It came in at 47.4 for April, down from 49.1 in March and against a consensus forecast of 49.3.

A similar survey suggested manufacturing in China has also contracted in the last month.

COMPANIES

Wal-Mart has had a shocker, falling 5% by the midway point, after being caught up in a corruption probe in Mexico.

Kellogg was also down sharply as it reduced its earnings forecast.

Aluminium giant Alcoa dropped 0.7% in response to worries on demand from Europe and the far east.

OTHER MARKETS.

Front month west Texas crude futures contracts were down 1.5% at $102.31 at 12:36 New York time.

The euro-dollar had fallen 0.64% by 12:50 to hit $1.3135.

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