By FXEmpire.com
The global markets suffered from heavy jolt of negative news from the world over due to Intensifying EU crisis and US economy laggardness. Starting with the American markets, the US labor market stumbled in May as employers added fewest workers in a year and the unemployment rate rose, dealing a blow to Obama’s re-election bid and raising the odds that the Federal Reserve will take steps to boost growth. Payrolls climbed by 69,000 last month, less than the most- pessimistic market forecasts, after a revised 77,000 gain in April that was smaller than initially estimated. The jobless rate rose to 8.2%from 8.1%. The unemployment data not meeting the forecasted one had a viral effect on the US markets. NASDAQ fell by 3.3%, followed by S&P 500 (-3.1%) and Dow Jones (-2.8%) toppled on the worst performing week.
All the Asian indices are trading the red this Monday morning. Shanghai and Hang Seng are down by 1.3% and 2.3% respectively. Nikkei and Kospi are trading down by 2.0% and 2.4% respectively while Strait Times and Taiwan are in the red down by 1.4% and 2.4% respectively.
On the European side, markets saw terrible fear over Greece’s credit rating cut by Moody’s, stating there is an increasing risk that the country may exit the Euro region. And the bad news didn’t stop there. UK’s May PMI manufacturing survey was also weaker than expected, dropping to 45.9 from 50.2 in April. In European foreign exchanges, the euro hit a 23-month low against the dollar at USD1.2280 immediately after the payrolls were released. However, it had recovered to fetch USD1.2397. The DAX fell by a good, followed by CAC 40 (-3.3%) and FTSE 100 (-1.7%) over the week.
Stock markets across the Asian region extended their somber run (better as compared to its global counterparts) in this week with most of the indices headed towards their biggest monthly drop since 2008 with cues from US markets, which were stormed by more concern regarding the European debt crisis. Among the major Asian indices, Hang Seng lost 0.8% over the week, while Nikkei lost -1.7%.Benchmark share indices ended 1.7% down on Friday, amid weak global cues, on concerns over economic growth slowdown and subdued growth outlook for fiscal 2013. It’s been a rough start for the June series as the Nifty shed 80 points to close below 4850 dragged down by rate sensitive, commodity, utilities and technology stocks.
European shares closed at six-month lows on Friday as lingering fears over Greece and Spain, plus concern the global economy is stagnating, weighed on investors’ minds. U.S. stocks suffered their worst day of the year, with the Dow tumbling into negative territory for 2012, after a disappointing jobs report in addition to dismal data from China and Europe fueled fears over the health of the global economy.
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Originally posted here
