European stocks fell to a five-month low as reports showed U.S. payrolls increased at the slowest pace in a year and the unemployment rate unexpectedly rose, adding to weakening economic data from China and the euro area.
U.S. payrolls climbed by 69,000 last month, less than the most-pessimistic forecast in a Bloomberg News survey, after a revised 77,000 gain in April that was smaller than initially estimated, Labor Department figures showed. The median estimate called for a 150,000 May advance. The jobless rate rose to 8.2 percent from 8.1 percent, while hours worked declined.
Euro-area unemployment reached the highest on record as a deepening economic slump and budget cuts prompted companies from Spain to Italy to cut jobs.
China’s Purchasing Managers’ Index fell to 50.4 in May from 53.3 in April, the nation’s statistics bureau and logistics federation said.
National benchmark indexes fell in all of the 18 western European markets today. Germany’s DAX dropped 3.4 percent, the U.K.’s FTSE 100 slid 1.1 percent, while France’s CAC 40 declined 2.2 percent.
Preferred shares of Volkswagen AG dropped 4.1 percent to 123.75 euros, its third day of declines. Daimler and BMW fell 5.1 percent to 35.52 euros and 3.9 percent to 58.72 euros, respectively. A gauge of automakers was the worst performer of the 19 industry groups on Stoxx 600.
Anheuser-Busch InBev NV, the world’s biggest brewer, fell 3.2 percent to 53 euros after the Brazilian government raised beer taxes more than anticipated. AB InBev owns Cia. de Bebidas das Americas, Brazil’s biggest brewer and gets about 30 percent of its earnings before interest and taxes from the country.
Swatch Group AG and Cie. Financiere Richemont SA fell 4.7 percent to 355.90 francs and 6.1 percent to 52 francs as China’s manufacturing slowdown raised concerns that demand for Swiss watches will decline in the country.
The Dow Jones Industrial Average wiped out its 2012 advance as American employers added the fewest workers in a year, the unemployment rate rose while manufacturing in the U.S., Europe and China disappointed.
Equities tumbled as U.S. payrolls climbed by 69,000 last month, less than the most-pessimistic forecast. The jobless rate rose to 8.2 percent. The Institute for Supply Management’s factory index fell to 53.5 after reaching a 10-month high. A gauge of manufacturing in the euro zone fell to a three-year low while China’s Purchasing Managers’ Index dropped to 50.4 from 53.3, the weakest production growth since December.
Nine out of 10 groups in the S&P 500 fell today as financial, consumer discretionary and technology shares slumped at least 2.2 percent. The Dow Jones Transportation Average dropped 2.5 percent. Bank of America (ВАС) lost 4.1 percent to $7.05. Caterpillar (САТ), the largest maker of construction equipment, lost 1.5 percent to $86.34. Alcoa (AA), the largest U.S. aluminum producer, retreated 1.7 percent to $8.41.
Facebook slipped 4.8 percent to $28.19, almost erasing yesterday’s 5 percent rally. The social-networking company led U.S. IPOs to their worst monthly performance since Lehman Brothers Holdings Inc. collapsed, as Europe’s debt crisis scuttled IPO plans from New York to Hong Kong.
Groupon Inc. retreated 9.8 percent to $9.60, the lowest since it went public in November. The largest daily coupon website declined as a lock-up period expired, permitting insiders to sell shares.
U.S. stock futures fell as employers in May added the smallest number of workers in a year and the unemployment rate unexpectedly increased.
Payrolls climbed by 69,000 last month, less than the forecast, after a revised 77,000 gain in April and March. The median estimate called for a 152,000 May advance. The jobless rate rose to 8.2% from 8.1%.
Global Stocks:
Nikkei 8,440.25 -102.48 -1.20%
Hang Seng 18,558.34 -71.18 -0.38%
Shanghai Composite 2,373.44 +1.20 +0.05%
FTSE 5,240.37 -80.49 -1.51%
CAC 2,934.45 -82.56 -2.74%
DAX 6,032.53 -231.85 -3.70%
Crude oil $83.31 (-3.72%)
Gold $1583.60 (+1.24%)
Asian stocks fell after reports on China’s manufacturing and the U.S. economy missed estimates, and as Spain denied it is in talks about a bailout as its bond yields approach a level that prompted rescues in other nations.
Nikkei 225 8,440.25 -102.48 -1.20%
S&P/ASX 200 4,063.9 -12.36 -0.30%
Shanghai Composite 2,374.37 +2.14 +0.09%
Sony Corp., a Japanese exporter of consumer electronics that gets 37 percent of its sales in the U.S. and Europe, fell 2.6 percent in Tokyo.
Industrial & Commercial Bank of China Ltd., the world’s biggest lender by market value, declined 0.9 percent in Hong Kong.
BHP Billiton Ltd., Australia’s No. 1 mining company and oil producer, lost 1.8 percent after metal and crude prices dropped.
Change % Change Last
Nikkei 225 8,542.73 -90.46 -1.05%
S&P/ASX 200 4,076.3 -17.93 -0.44%
Shanghai Composite 2,371.32 -13.35 -0.56%
FTSE 100 5,295.87 -1.41 -0.03%
CAC 40 3,017.01 +1.43 +0.05%DAX 6,264.38 -16.42 -0.26%
Dow 12,393 -26 -0.21%
Nasdaq 2,827 -10 -0.35%
S&P 500 1,310 -3 -0.23%
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