Stocks decline in Europe, Asia
Saturday, 8 March 2008
LONDON, Mar 7 (Agencies) : Stocks tumbled in Europe and Asia and US index futures fell as investors speculated credit-market losses will deepen for financial companies and an employment report showed the U.S. slipped closer to a recession.
Axa SA, Europe's second-biggest insurance company, sank to the lowest since 2005. Australia's Allco Finance Group Ltd. plunged 17 per cent as banks seized shares as collateral for unpaid loans. BHP Billiton Ltd. led a slump by raw-material producers, the world's best-performing stocks this year, as metals prices dropped.
Asian stocks fell nearly 3 per cent today, heading for their biggest weekly slide this year, weighed on by credit-related losses, a record low dollar and the U.S. economy's fall towards recession.
Some analysts now say a recession in Japan is not far behind.
The country's central bank lowered on Friday its assessment of the world's second-biggest economy, a challenge that newly proposed Bank of Japan Governor Toshiro Muto may have to face.
Bonds across the region gained, with Japanese government bond futures hitting a 2-1/2 year high as investors opted for safety.
Japan's benchmark Nikkei average hit a six-week low, ending down 3.3 percent, while shares in India and Australia were also down more than 3 percent each. -MORE/SI/1340 HRS
Hong Kong stocks were down 2.9 percent. Shares in South Korea, Singapore, Taiwan, and China were down 1-2 percent each.
Concerns about a slowing global economy are being compounded by surging commodity prices, leaving some central banks around the world dealing with the prospects of slowing growth yet rising inflation, known as stagflation.
The Federal Reserve runs the risk of feeding inflation if it concentrates too much on protecting the U.S. economy from a slowdown, St Louis Federal Reserve President William Poole said on Thursday.
Indian shares slid in volatile trading Friday, tracking global markets, with the benchmark index dropping more than 3 percent and slipping below 16,000 points.
The 30-company benchmark index of the Bombay Stock Exchange, the Sensex, fell 567 points, or 3.4 percent to 15,976 points at final close. The Sensex fell as much as 5.2 percent to 15,689.92 in afternoon trade before recovering slightly.
Axa SA, Europe's second-biggest insurance company, sank to the lowest since 2005. Australia's Allco Finance Group Ltd. plunged 17 per cent as banks seized shares as collateral for unpaid loans. BHP Billiton Ltd. led a slump by raw-material producers, the world's best-performing stocks this year, as metals prices dropped.
Asian stocks fell nearly 3 per cent today, heading for their biggest weekly slide this year, weighed on by credit-related losses, a record low dollar and the U.S. economy's fall towards recession.
Some analysts now say a recession in Japan is not far behind.
The country's central bank lowered on Friday its assessment of the world's second-biggest economy, a challenge that newly proposed Bank of Japan Governor Toshiro Muto may have to face.
Bonds across the region gained, with Japanese government bond futures hitting a 2-1/2 year high as investors opted for safety.
Japan's benchmark Nikkei average hit a six-week low, ending down 3.3 percent, while shares in India and Australia were also down more than 3 percent each. -MORE/SI/1340 HRS
Hong Kong stocks were down 2.9 percent. Shares in South Korea, Singapore, Taiwan, and China were down 1-2 percent each.
Concerns about a slowing global economy are being compounded by surging commodity prices, leaving some central banks around the world dealing with the prospects of slowing growth yet rising inflation, known as stagflation.
The Federal Reserve runs the risk of feeding inflation if it concentrates too much on protecting the U.S. economy from a slowdown, St Louis Federal Reserve President William Poole said on Thursday.
Indian shares slid in volatile trading Friday, tracking global markets, with the benchmark index dropping more than 3 percent and slipping below 16,000 points.
The 30-company benchmark index of the Bombay Stock Exchange, the Sensex, fell 567 points, or 3.4 percent to 15,976 points at final close. The Sensex fell as much as 5.2 percent to 15,689.92 in afternoon trade before recovering slightly.