No let-up in global stocks slide as Oil Prices Soar
Pastor Dale Morgan
No let-up in global stocks slide as Oil Prices Soar*
Global stock markets have suffered a sell-off sparked by concerns about
the global economy and crude oil prices which have hit a new record.
New York's Dow Jones closed down 0.93%, or 106.9 points, at 11,346.51 as
the cost of oil rose to a fresh high above $142 a barrel.
Losses were mirrored across the Atlantic, as share indexes in Paris and
Frankfurt ended about 0.6% lower.
But London's FTSE shrugged off earlier losses to register a 0.2% rise.
Stock markets across Asia fell - earlier China's benchmark Shanghai
index dropped by 5.3%, while India's Sensex index declined by 4.3%.
Indexes in Japan, Taiwan and South Korea all shed more than 2%.
Crude oil surged to a record, as Brent crude jumped to $142.13 a barrel,
while New York light crude climbed as high as $142.26, on concerns about
supply.
The global stock market downturn began in New York on Thursday, when the
Dow fell more than 3% to a two-year low.
The fear on Wall Street is that rising prices and tighter finances will
force Americans to curb spending and push the economy into recession.
Consumer concerns
Traders brushed aside positive news about US consumers on Friday.
The US economic stimulus package, which will hand out $107bn to
Americans this year, boosted household budgets and helped consumer
spending rise 0.8% last month.
But analysts are not convinced May's feelgood factor will last.
"We have had very strong consumer spending, but most of the tax rebates
went into savings, which might mean they are going to stay there," said
Pierre Ellis, an economist at Decision Economics in NewYork.
Investors also reacted to a string of bad news about key sectors of the
US economy, while worries remain about the credit crunch and sub-prime
fallout.