Global stocks dip on growth fears

08:22, July 06, 2010      

Email | Print | Subscribe | Comments | Forum 

Global stocks and oil prices fell Monday on rising concerns of slowdowns in the United States and China -- the two main pillars of global growth.

Data showing the U.S. labor market shrank for the first time this year in June, slower Chinese manufacturing activity and euro zone austerity measures fueled concerns over a dim prospect of the global economic recovery from recession.

World stocks measured by MSCI All-Country World Index dipped 0.2 percent after losing nearly 4 percent last week. The index has lost 16.2 percent since April.

French Economy Minister Christine Lagarde said that stress test results to be published on July 23 will show that "banks in Europe are solid and healthy."

However, "there is a certain amount of skepticism that the stress tests (on banks) ... will either be fudged or the complete results won't be published. What we need is clarity," said Felicity Smith, fund manager at Bedlam Asset Management.

In Asia, Tokyo's Nikkei average put on 0.7 percent, while the Shanghai Composite Index dropped 0.8 percent. Brazil's Bovespa index slipped 0.2 percent.

The dollar added 0.3 percent against a basket of major currencies, recovering from a near two-month low as traders held back given the U.S. market holiday.

The euro paused after last week's boost from unwinding of short and leveraged positions. It slipped 0.3 percent to $1.2521 and dipped 0.3 percent to 109.87 yen.

The shared European currency has lost 12.5 percent against the dollar so far this year, though attention now appears to have turned to concerns of a slowdown in the United States and away from the euro zone's banking and government debt woes.

"The market last week was clearly concerned about a U.S. slowdown. It was the first week in a long time we have seen the dollar react like that," said Chris Turner, head of foreign exchange strategy at ING.

In the commodity market, crude prices fell 0.4 percent to below $72 a barrel Monday, extending last week's 8.4 percent drops.

Agencies / People's Daily Online

(Editor:赵晨雁)

  • Do you have anything to say?

双语词典
dictionary

  
Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 28, tourists travel around the Mingshashan Scenic Area in Dunhuang, Gansu province by camel. With the National Day vacation right around the corner, more and more tourists from home and abroad are going to Dunhuang. Riding on a camel, they travel in the desert to enjoy the cities rare form of natural scenery. (Xinhua/Zhang Weixian)
  • Chinese forest armed forces work together with forest firefighters on Sept. 28. (Xinhua/Chai Liren)
  • Photo taken on Sept. 29, 2011 shows strong wind blows trees in Sanya, south China's Hainan Province. Typhoon Nesat heads towards south China and is moving at an average wind speed of 20 km per hour toward the west coast of China's Guangdong Province. (Xinhua/Hou Jiansen)
  • A fallen tree is seen on a road in Qionghai, south China's Hainan Province, Sept. 29, 2011. Typhoon Nesat was predicted to land in Hainan later Thursday, bringing heavy rainfalls to the island. (Xinhua/Meng Zhongde)
  • Arash Kamalvand (L) of Iran spikes the ball during the semifinal against South Korea at the 16th Asian Men's Volleyball Championship in Tehran, Iran, Sept. 28, 2011. Iran won 3-1 to advance to the final. (Xinhua/Ahmad Halabisaz)
  • A man visits "Thy Word Is Truth, the Bible Ministry Exhibition of the Protestant Church in China", during its opening at Mount Vernon Place United Methodist Church in Washington DC, capital of the United States, Sept. 28, 2011. Through the Bible's various Chinese versions, ancient or modern, as well as pictures, paintings, calligraphy, art works and historical documents, the exhibition was expected to give an overall understanding of how Bible was brought into China, how it was translated, published, distributed and loved. (Xinhua/Zhang Jun)
Hot Forum Discussion