Page last updated at 22:28 GMT, Friday, 27 June 2008 23:28 UK

No let-up in global stocks slide

Shoppers in New York
Traders are worried about oil prices and the health of the US economy

Global stock markets have suffered a sell-off sparked by concerns about the global economy and crude oil prices which have hit a new record.

New York's Dow Jones closed down 0.93%, or 106.9 points, at 11,346.51 as the cost of oil rose to a fresh high above $142 a barrel.

Losses were mirrored across the Atlantic, as share indexes in Paris and Frankfurt ended about 0.6% lower.

But London's FTSE shrugged off earlier losses to register a 0.2% rise.

Stock markets across Asia fell - earlier China's benchmark Shanghai index dropped by 5.3%, while India's Sensex index declined by 4.3%.

Indexes in Japan, Taiwan and South Korea all shed more than 2%.

Crude oil surged to a record, as Brent crude jumped to $142.13 a barrel, while New York light crude climbed as high as $142.26, on concerns about supply.

The global stock market downturn began in New York on Thursday, when the Dow fell more than 3% to a two-year low.

The fear on Wall Street is that rising prices and tighter finances will force Americans to curb spending and push the economy into recession.

Consumer concerns

Traders brushed aside positive news about US consumers on Friday.

The US economic stimulus package, which will hand out $107bn to Americans this year, boosted household budgets and helped consumer spending rise 0.8% last month.

But analysts are not convinced May's feelgood factor will last.

"We have had very strong consumer spending, but most of the tax rebates went into savings, which might mean they are going to stay there," said Pierre Ellis, an economist at Decision Economics in NewYork.

Investors also reacted to a string of bad news about key sectors of the US economy, while worries remain about the credit crunch and sub-prime fallout.




MARKET DATA - 11:37 UK

FTSE 100
5428.78up
22.84 0.42%
Dax
5732.06up
18.55 0.32%
Cac 40
3783.91up
14.37 0.38%
Dow Jones
10403.79up
78.53 0.76%
Nasdaq
2273.57up
35.31 1.58%
Data delayed by at least 15 minutes

SEE ALSO
Global stocks slide into the red
26 Jun 08 |  Business
China raises 2007 growth figure
10 Apr 08 |  Business
Oil hike sparks 'serious concern'
07 Jun 08 |  Business
Food prices drive China inflation
12 May 08 |  Business

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