World stocks tumbled on Monday after fresh fears surfaced about disappointing US job figures, and the further spread of the fiscal crisis in Hungary, the latest of the European Union’s problems.
The European stock markets mostly fell and the Euro has hit a new four-year low against the dollar in the wake of fears of a meltdown of the banking systems of small EU countries such as Greece and Hungary. Financial experts reportedly said that it is unlikely, but the debt problem might continue to spread in smaller EU countries, eventually reaching larger countries such as Germany and France.
Investors’ concerns about Hungary’s economy were sparked after a leading official from the ruling party in the nation said last week that Hungary faces a Greek-style debt problem.
But poorer than expected US job figures were the key factor in driving the world stocks down according to experts.
In the US stocks broadly declined after the release of the last weeks’ government report showing that the US economy created 432,000 jobs in May falling short than the expected increase of 513,000 new jobs. The report revealed that most of the jobs created in May were temporary hiring by the government for the 2010 US Census Bureau, and that only 41,000 private-sector jobs were added.
Data showed that retail stocks were among the hardest hit stocks after investors’ concerns that a weak job market in the US would discourage consumers from spending.
US financial stocks also fell broadly due to fears that borrowers would continue having problems paying their bills.
Asian stock markets cooled as investors remained concerned about China’s economic growth.
The Tokyo market also fell after briefly rising on news that the Democratic Party of Japan elected Naoto Kan as its new party leader.
The European stock markets mostly fell and the Euro has hit a new four-year low against the dollar in the wake of fears of a meltdown of the banking systems of small EU countries such as Greece and Hungary. Financial experts reportedly said that it is unlikely, but the debt problem might continue to spread in smaller EU countries, eventually reaching larger countries such as Germany and France.
Investors’ concerns about Hungary’s economy were sparked after a leading official from the ruling party in the nation said last week that Hungary faces a Greek-style debt problem.
But poorer than expected US job figures were the key factor in driving the world stocks down according to experts.
In the US stocks broadly declined after the release of the last weeks’ government report showing that the US economy created 432,000 jobs in May falling short than the expected increase of 513,000 new jobs. The report revealed that most of the jobs created in May were temporary hiring by the government for the 2010 US Census Bureau, and that only 41,000 private-sector jobs were added.
Data showed that retail stocks were among the hardest hit stocks after investors’ concerns that a weak job market in the US would discourage consumers from spending.
US financial stocks also fell broadly due to fears that borrowers would continue having problems paying their bills.
Asian stock markets cooled as investors remained concerned about China’s economic growth.
The Tokyo market also fell after briefly rising on news that the Democratic Party of Japan elected Naoto Kan as its new party leader.
