Global equities plunge on recession worries

Tokyo’s equities markets were lower on Monday after last week’s jobs report from the United States, which showed that a significant number of jobs were lost from the economy in February, another sign that the US economy might already be in a recession. Additionally, a strengthening yen hurt exporters. The Nikkei 225 was 1.96 percent lower to 12,532.13 while the Topix index fell 1.87 percent to 1,224.39 and the Mothers market dropped 6.39 percent to 594.11. Computer problems caused some shares listed on the Topix to go untraded during the morning session. Miners were down on falling gold prices, while carmakers and the electronics sector also saw declines. Utilities and construction machinery manufacturers were higher on the session.

Most other markets in the Asia-Pacific region were also down on worries created by the US jobs report for February, which was released on Friday. The main exception to losses was Hong Kong’s Hang Seng, which added 0.91 percent to 22,705.05. The Sensex was down 0.32 percent to 15,923.72 while the Straits Times Index was 1.04 percent lower to 2,836.59. In Australia the S&P/ASX200 fell 1.59 percent to 5,180.4 and the Sydney Ordinaries dropped 1.74 percent to 5,275.7. The Kospi index was down 2.33 percent to 1,625.17 in South Korea while Taiwan’s Taiex was 2.72 percent lower to 8,299.37 and the Shanghai Composite dropped 3.59 percent to 4,146.3.

Markets in Europe were lower on the session as investors continued to worry about a recession in the United States. The pan-European FTSE Eurofirst 300 was down 1.16 percent to 1,254.75. Madrid’s IBEX was 0.29 percent lower to 12,655 while the Dax fell 1.01 percent to 6,448.08 and the CAC-40 dropped 1.13 percent to 4,566.99 Utilities and the telecommunications sector were both higher, as were carmakers and software groups. Banks and the steel sector were down. So were chipmakers and the real estate sector.

In London, the FTSE 100 was down 1.24 percent to 5,629.1 while the FTSE 250 dropped 1.86 percent to 9,670.7. The tobacco sector was up on positive broker comment. The energy sector was also higher. Miners were down on lower metals prices, while homebuilders dropped on lower earnings in the sector and on a prediction that house prices won’t rise this year. The general construction sector also saw declines. Most banks and most insurers were lower, as were most retailers. The oil sector was mixed, with more down that up.

Wall Street was lower in mid-afternoon trade. The Dow Jones Industrial Average was 0.97 percent lower to 11,777.84 while the Nasdaq Composite fell 1.43 percent to 2,180.92 and the S&P 500 dropped 1.25 percent to 1,277.14. Among the issues sending shares lower were disappointing quarterly results from companies exposed to credit-market losses, soaring oil prices, and broker downgrades in the financial sector. There was also news of a government investigation into one mortgage lender. There were gains among fast food chains on positive February sales reports in the sector.

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