Thursday, June 2, 2011

US stocks edge lower; European shares hit by growth worries

US stocks ended a volatile trading day mostly flat as investors were reluctant to make bets a day before a critical labor market report that could magnify fears the economy is slowing.

The Dow Jones industrial average fell 41.59 points, or 0.34 percent, to 12,248.55. The Standard & Poor's 500 Index dipped 1.61 points, or 0.12 percent, to 1,312.94. The Nasdaq Composite Index rose 4.12 points, or 0.15 percent, to close at 2,773.31

European shares fell sharply for a second straight session to a six-week closing low as more US data raised concerns about the pace of recovery in the world's top economy.

The FTSEurofirst 300 index of top European shares finished 1.3 percent lower at 1,115.92 points -- the lowest close since mid-April. The index is down 0.5 percent this year.

Japanese share prices fell sharply after disappointing US data added to suspicions that the global economy may be losing traction, prompting traders to shun risk assets.

Tokyo shares were not helped by simmering political uncertainty after Japanese Prime Minister Naoto Kan survived a no-confidence vote by offering to resign once he has overcome the worst of the country's nuclear crisis.

The Nikkei share average fell 1.7 percent to 9,555.04, giving up a large portion of the gains accumulated over the past two sessions.

The broader Topix dropped 1.6 percent to 825.76.