European Stocks Slide After More Losses in Asia
Europe's main stock markets fell further on Tuesday, after fresh losses in Asia, as investors continued to worry about China's economic outlook and the Greek debt crisis, dealers said.
In morning deals, London's FTSE 100 index of leading shares dipped 0.88 percent to 5,822.78 points, Frankfurt's DAX 30 slid 1.34 percent to 6,774.20 points and the Paris CAC 40 lost 1.27 percent to 3,443.35 points.
The European single currency retreated to $1.3176 from $1.3218 late in New York on Monday.
Asian equities fell on Tuesday after China cut its growth target for this year, and caution over Greece's debt deal overshadowed upbeat numbers from the United States.
Traders said Monday's announcement by Premier Wen Jiabao at the opening of the National People's Congress -- the annual parliamentary meeting -- that China would target 7.5 percent growth in 2012 cast a pall over global markets.
It represents a further slowing in the world's number two economy -- following 9.2-percent growth last year and 10.4 percent in 2010 -- as its exports are buffeted by weak demand from U.S. and European markets.
"Lacklustre growth assessments from China and Europe was the driving force behind yesterday's fall in the markets, starting off the week with stocks performing at their worst levels for nearly a month," said Spreadex trader Simon Furlong.
"Concerns over China's slower growth forecasts are heavily weighing on investors' minds, with resource stocks being particularly hit as slowing growth in China will lower demand for raw materials.
"With China being the world's main exporter, their growth figures give a great deal of insight into the global demand, which is clearly struggling."
European equities also sank on Monday after China reduced its growth target, with a dip in eurozone business activity also dampening sentiment.
In Asia on Tuesday, Hong Kong slumped 2.16 percent and Shanghai shed 1.41 percent. Tokyo lost 0.63 percent and Seoul slipped 0.78 percent, while Sydney fell 1.37 percent after the Australian central bank held interest rates.
The prospect of slower Chinese growth also weighed on Wall Street where the Dow Jones Industrial Average ended 0.11 percent lower, the S&P 500 shed 0.39 percent and the tech-rich Nasdaq lost 0.86 percent.
US stocks fell despite figures showing the crucial services sector strengthened last month, according to a closely watched index released Monday.
The Institute for Supply Management's services index rose to 57.3 percent from 56.8 in January, with the ISM's business activity subindex jumping to 62.6 from 59.5. A reading above 50 means the sector is growing.
"It just goes to show how important the Chinese economy is to the whole global picture when positive U.S. figures seem to have no mitigating effect whatsoever on any negativity coming out of the East," added broker Owen Ireland at Valbury Capital.
"It serves as a reminder that systematic risk is an ever increasing global concern and that news from Europe particularly has the power to make any present gains short-lived."
Source: Agence France Presse
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