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World stocks slip after a surge as investors focus on worsening state of economy
World stocks slipped on Tuesday after a high as investors, backed by economic data, shift focus to worsening state of global economy.
- Agencies
- Published: 13:38 December 9, 2008
Dubai: World stocks slipped on Tuesday after a high as investors, backed by economic data, shift focus to worsening state of global economy.
Stocks surged on Monday after US President-elect Barack Obama outlined plans for the largest infrastructure investment since the 1950s and hopes grew for a rescue plan for US automakers.
But news of job cuts at Sony, revenue forecast downgrades from Texas Instruments and National Semiconductor Corp, and weak economy data from Japan fanned concerns about the already deteriorating global economy.
On Monday, US stocks hit their highest level in a month, pushing the S&P index into positive territory for the month.
MSCI world equity index fell half a per cent while the FTSEurofirst 300 index lost 1.4 per cent on the day.
Emerging stocks fell 0.3 per cent.
US crude oil fell 0.75 per cent to $43.39 a barrel after rallying 7 per cent the previous day.
December Bund futures rose 35 ticks. Yields on 10-year US Treasuries stood at 2.6963 per cent, having hit a five-decade low of 2.510 per cent last week.
The dollar rose half a per cent against a basket of major currencies while the yen rose 0.6 per cent to 92.36 per dollar.
Data showed Japan's economy contracted at an even faster pace than originally estimated during the third quarter, with the economy shrinking 0.5 per cent in July-September.
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