For Quick Alerts
For Daily Alerts

Mayhem across global markets; worst yet to come


Mayhem across global markets; worst yet to come
In what was one of the worst weeks for global markets in 2012, stocks in Europe, US and Asia tumbled, as investor carnage due to weakening economic fundamentals continued.

US indices fell as job growth in May was the weakest in a year and employers added far fewer jobs in the prior two months than previously reported.


The NASDAQ on Friday shed 2.82%, while the S&P 500 shed 2.46%. In Europe shares closed at six month lows on Friday with the German DAX losing a whopping 3.42%, the French CAC losing 2.21% and the FTSE losing 1.14%.

In Europe the manufacturing sector contracted to the worst level in three years, while Italy's jobless rates reached a lifetime high. Reports in Spain revealed that almost $100 billion had left the country sparking fresh worries for investor sentiments in the country. With bond rates reaching fresh highs in Spain, the ability to finance debts may remain unsustainable for the country. New orders in the German manufacturing sector shrank at the fastest pace since last November, falling for the eleventh straight month in May 2012, signaling weak underlying demand.

Stocks in Asia too declined as weak PMI data from China sparked fresh worries of a slowdown in the Asian giant. India too faltered with Q4 GDP growth rates for FY 2011 coming in at their lowest level in nine years

Investors are now being advised caution, as there is a likelihood that stocks might fall further as we head into a new week. The only silver lining for falling markets remain falling crude prices and the hopes for quantitative easing in the US.


Read more about: dow jones nasdaq
Story first published: Saturday, June 2, 2012, 9:36 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X