monday die together
World stocks down on worries debt will slow growthworld markets fall on concerns European austerity cuts, US unemployment will hamper growth
LONDON (AP) -- World stock markets and the euro fell Friday on worries that Europe's fiscal austerity measures and stubbornly high unemployment in the U.S. will slow down the global economic recovery.
Britain's FTSE 100 slid 1.8 percent to 5,333.80, Germany's DAX dropped 1.4 percent to 6,161.67 and the CAC-40 in France was down 2.7 percent at 3,629.82.
The euro fell as low as $1.2433, its weakest since November 2008 and down from $1.2520 yesterday, before climbing back to $1.2466 in afternoon European trading. On Monday, the 16-country common currency had rallied as far as $1.31 on news earlier this week of a new European loan backstop for indebted governments.
Asia closed lower and Wall Street was expected to dip on the open. Dow futures were down 0.6 percent at 10,706 and Standard & Poor's 500 futures were down 0.6 percent at 1,149.50.
Investors initially cheered Monday's announcement of the $1 trillion debt bailout package from the European Union and International Monetary Fund as it halted a speculative run against Greek bonds that had threatened to engulf other countries.
But now, with the worst case scenario averted, investors are wondering how deep spending cuts aimed at cutting deficits in Spain, Portugal and Greece -- as well as big economies like the U.K. -- will slow the global economy.
"It was taken as good news at first, but investors are starting to focus on the impact the austerity measures will have on the macroeconomic picture in Europe," said Lee Kok Joo, head of research at Phillip Securities in Singapore.
Corporate news was somewhat more encouraging, with investors welcoming the latest earnings report by EADS NV, the parent company of plane maker Airbus. Although net profit fell 39 percent, the shares traded higher because the company seemed to have overcome the worst of its delays and cost overruns on several of aircraft programs. Shares were up 1.3 percent in Paris.
Looking ahead, markets will be eyeing the latest U.S. economic data, including retail sales, which are expected to have edged up slightly in April.
