World stocks slide
Tuesday, 18 December 2007
LONDON, Dec 17 (AFP): World stock markets slumped on worries that resurgent US inflation would reduce the likelihood of another US interest rate cut to shield the economy from a credit crunch, dealers said Monday.
European and Asian shares sank into the red with losses of up to 3.50 per cent as investors took their cue from Wall Street's sell-off Friday in the wake of unexpectedly strong inflation figures.
Investors took fright following news that US consumer prices jumped 0.80 per cent in November. On a 12-month basis, inflation hit 4.30 per cent, the fastest since June 2006.
"Higher inflation in the US will reduce the scope for more interest rate cuts. That's why investors are not so happy," said Francis Lun, general manager at Fulbright Securities.
Nearing the half-way stage of European trade Monday, London's FTSE 100 index of leading shares was down 1.23 per cent to 6,318.30 points.
Frankfurt's DAX 30 slid 1.30 per cent to 7,845.24 points and in Paris the CAC 40 shed 1.39 per cent to 5,527.43.
Earlier in Asia, Tokyo closed down 1.70 per cent, Hong Kong slumped 3.51 per cent, Seoul shed 2.90 per cent and Shanghai gave up 2.60 per cent. Sydney and Taipei both lost 3.50 per cent.
European and Asian shares sank into the red with losses of up to 3.50 per cent as investors took their cue from Wall Street's sell-off Friday in the wake of unexpectedly strong inflation figures.
Investors took fright following news that US consumer prices jumped 0.80 per cent in November. On a 12-month basis, inflation hit 4.30 per cent, the fastest since June 2006.
"Higher inflation in the US will reduce the scope for more interest rate cuts. That's why investors are not so happy," said Francis Lun, general manager at Fulbright Securities.
Nearing the half-way stage of European trade Monday, London's FTSE 100 index of leading shares was down 1.23 per cent to 6,318.30 points.
Frankfurt's DAX 30 slid 1.30 per cent to 7,845.24 points and in Paris the CAC 40 shed 1.39 per cent to 5,527.43.
Earlier in Asia, Tokyo closed down 1.70 per cent, Hong Kong slumped 3.51 per cent, Seoul shed 2.90 per cent and Shanghai gave up 2.60 per cent. Sydney and Taipei both lost 3.50 per cent.