NEW YORK: Global stocks fell for a seventh day yesterday after data showed the euro zone entered a recession in the third quarter and on fear of the US "fiscal cliff," while oil prices gained on growing concerns about violence in the Gaza Strip.
Brent crude oil prices rose toward $111 a barrel as fighting in the Gaza Strip sparked worries of an escalation in fighting that could ultimately disrupt oil supplies from the Middle East.
Benchmark Brent crude rose $1.08 to $110.69 a barrel.
The yen tumbled to its lowest level against the US dollar since late April after the leader of Japan's main opposition party called for a move toward negative interest rates, sapping the currency's appeal despite its safe-haven status.
Against the yen, the dollar was up 1.02 percent at 81.06.
US stocks fell in choppy trading yesterday.
The S&P 500 is off about 2 percent for the week so far.
The Dow Jones Industrial Average was down 59.67 points, or 0.47 percent, at 12,511.28. The Standard & Poor's 500 Index was down 6.45 points, or 0.48 percent, at 1,349.04. The Nasdaq Composite Index was down 17.41 points, or 0.61 percent, at 2,829.40.
In Europe, stocks ended lower, with a key index hitting a two-month low on the economic data. The FTSEurofirst 300 index of top European shares unofficially closed 0.9 percent lower at 1,078.64 points, a level not seen since early September.
"The global economy faces some severe headwinds. Against that backdrop we see short-term de-risking of portfolios," said Abi Oladimeji, head of investment strategy at Thomas Miller Investment.
World stocks were on course for a seventh successive day of losses. MSCI's world equity index fell 0.52 percent at 316.97 points and has now lost over 3.0 percent this month.
The euro rallied to a two-week high against the yen and also rose against the dollar, despite the gloomy economic data for the euro zone.
The euro was up 0.38 percent at $1.2782 from a previous session close of $ 1.2734.
Global shares sink on euro zone data
