NEW YORK: Most global shares slumped on Thursday after reports cast doubts on the US economic recovery and the health of the UK banking system, while fiscal worries elsewhere in Europe dented the euro versus the dollar.
Earnings reports also helped send US stocks lower.
Shares in the United States and Europe turned lower as a drop of 8,000 in initial claims for unemployment benefits suggested a sluggish jobs recovery.
The Dow Jones Industrial Average at midday swooned 146.31 points, or 1.43 percent, to 10,089.85. The Standard & Poor’s 500 Index fell 15.74 points, or 1.43 percent, to 1,081.76 and the Nasdaq Composite Index declined 48.43 points, or 2.18 percent, to 2,172.98.
World stocks as measured by MSCI fell nearly 1 percent. The index is at its lowest since Nov. 6 and down more than 7 percent from highs set earlier this month.
European stocks also struggled, and the euro fell, as concerns about banks and the fiscal health of Greece, Portugal and other smaller euro zone countries weighed on investor confidence. European shares dropped 1.2 percent.
The euro dropped 0.31 percent to $1.3973, the lowest level since mid-July. The dollar rose against a basket of major trading-partner currencies, up 0.27 percent at 78.891, but fell 0.26 percent against the Japanese yen to 89.77 yen.
Losses sustained in Europe and the US followed an upbeat day in Asia, where Japan’s Nikkei average rose 1.6 percent, snapping a four-day losing streak following positive reports from Honda Motor and Sony Corp.
Spot gold prices fell 45 cents, or 0.04 percent, to $1,085.90.
Oil prices fell further on Thursday on concerns over threats to the global recovery.
New York’s main futures contract, light sweet crude for delivery in March, was down 52 cents at $73.15 a barrel at 1750 GMT.
London’s Brent North Sea crude for March delivery shed 57 cents to $71.67, extending sharp falls witnessed on Wednesday.
On Thursday, the International Energy Agency said it planned to organize a two-day oil industry conference in late February to discuss factors affecting the crude oil market, including speculation.
The gathering in Tokyo on Feb. 25-26 will debate “a broad range of market issues” and will look at “the main factors influencing price trends,” an IEA press official told AFP. “Speculation will certainly be one of the items on the agenda,” she said.
