Friday, June 1, 2012

Global shares sink on US job data

US stocks fell more than 2 percent on Friday, dragging the Dow into negative territory for the year after a dismal US jobs report added to fears that Europe's spiraling debt crisis was dragging down the world economy.

The Dow Jones industrial average fell 274.88 points, or 2.22 percent, to 12,118.57 at the close. The S&P 500 Index dropped 32.29 points, or 2.46 percent, to 1,278.04. The Nasdaq Composite dropped 79.86 points, or 2.82 percent, to 2,747.48.

European shares tumbled to six-month lows and braced for further losses as weak economic data from the United States and Europe cast new shadows on global economic recovery prospects.

The pan-European FTSEurofirst 300 index closed 1.9 percent lower at 954.74 points, a closing level not seen since December, while the Euro STOXX 50 index of euro zone blue chips fell to a seven-month closing low of 2,068.66 points, down 2.4 percent.

In Asia, Nikkei average slid to mark its ninth straight week of losses, the longest such run in 20 years, after disappointing Chinese and US data deepened fears of a global slowdown in the throes of Europe's debt crisis. The Nikkei fell 1.2 and was down 1.6 percent on the week.

The broader Topix lost 1.5 percent and the index ended down 1.8 percent on the week, on track for a ninth straight week of losses to mark its worst weekly losing streak since 1975.