Monday, September 5, 2011

European shares lower on recession concerns

LONDON: European shares fell on Monday, Sept 5, extending its previous session slide on concerns that the United States could be heading towards recession following Friday's weaker than expected U.S. nonfarm payroll data.

Banking stocks featured heavily among the worst performers on the growth outlook concerns, with the STOXX Europe 600 Banks index down 2.6 percent.

"Sentiment seems to be playing a big move in these market swings, nothing happened over the weekend to install investor confidence," Mark Priest, senior equities trader at ETX Capital, said.

"There are concerns that growth is not what it is expected to be."

By 0714 GMT, the pan-European FTSEurofirst 300 index of top shares was down 2 percent at 929.41 points after dropping 2.5 percent on Friday after the economy failed to create any new jobs on a net basis for the first time in nearly a year.

In SHANGHAI, China's benchmark stock index tumbled 2 percent to close at a 13-month low on Monday on a slump in the global market and concerns over tightening liquidity.

The Shanghai Composite Index finished at 2,478.7 points, its lowest since late July last year, after falling 3.2 percent last week. Turnover remained low, hovering near a 14-month low. In SEOUL, Korean shares finished down more than 4 percent on Monday, erasing almost all the gains earned last week, as deepening worries about the U.S. economy decreased investors' risk appetite and pummeled key exporters and energy counters.

The Korea Composite Stock Price Index (KOSPI) closed down 4.39 percent at 1,785.83 after finishing last week with a 5 percent gain.

In TOKYO, the Nikkei 225 fell nearly 2% to wipe out last week's gains, hut by a weaker euro and a US jobs report that raised worries that President Barack Obama's jobe measures would not be enough to prevent another US recession. - Reuters

No comments:

Post a Comment