Enlarge Photo
The outside of the London Stock Exchange building is seen in London, in this March...
Fri, Jul 25 02:28 PM
By Natsuko Waki
LONDON (Reuters) - World stocks hit a one-week low on Friday while the dollar fell as dismal U.S. housing and jobs data fanned fresh concerns about the health of the financial sector and the broader economy.
Thursday's data showed U.S. existing home sales fell more sharply than forecast in June and dragged the pace of annual sales to a 10-year low. The number of U.S. workers filing new claims for jobless benefits jumped last week.
This came as key measures of business activity and company sentiment fell more than expected in the euro zone while Japanese exports shrank in June for the first time in nearly five years at a time when the country's inflation is climbing to a decade high.
Global equities had rallied earlier in the week after second-quarter corporate earnings proved less disastrous than some had expected but doubts about the health of the economy is spooking investors again.
"With the real economy still in deep trouble and house prices falling, financial losses will continue to mount. We are not out of the woods, even though there are some occasional rays of sunshine," said Paul Mortimer-Lee, global head of market economics at BNP Paribas.
The FTSEurofirst 300 index fell 0.9 percent while the MSCI main world equity index lost 0.75 percent after a rally from July's 21-month low fizzled out earlier in the week.
The dollar was down 0.3 percent against a basket of major currencies. It stood at $1.5702 per euro.
"We have slightly higher oil prices and negative equity markets. The dollar has had a nice week until yesterday so ... people are taking a bit of profit on short euro/dollar positions," said Niels Christensen, FX strategist at Nordea in Copenhagen.
Emerging sovereign spreads widened 2 basis points while emerging stocks were down nearly 2 percent.
The September Bund future rose 40 ticks, drawing in safe-haven demand.
U.S. light crude rose 0.3 percent to $125.91 a barrel after falling more than $20 from its record high.
Gold rose to $932.60 an ounce.
If you are young, have a hectic social life where you drink and party, and have applied for a job, chances are you will lose out to someone who is a teetotaler.
| Copyright © Yahoo Web Services India Pvt Ltd. All rights reserved. Questions or Comments Privacy Policy -Terms of Service - Copyright Notice |
