European stocks follow Wall Street downwards

European stocks follow Wall Street downwards


London: Europe’s stock exchanges followed Wall Street downwards on Monday, 11 September, as the market mulled the implications of a weak US employment report that caused a big sell-off last week.

The London FTSE 100 index of leading shares fell 0.92% to 6,134.10 points. In Frankfurt the DAX 30 dropped 0.82% to 7,375.44 points and the Paris CAC 40 closed 0.80% lower at 5,386.43 points.

The DJ Euro Stoxx 50 index lost 0.62% to 4,136.45

The euro stood at $1.3787 in late European trade.

In New York, the Dow Jones Industrial Average was down 0.33% to 13,070.30. The Nasdaq composite fell 0.65% to 2549.03 points. The Standard & Poor’s 500 index was down 0.49% at 1,446.45.

The market recouped some of Friday’s heavy losses when markets were jolted by data showing the US economy lost 4,000 jobs in August, the first decline in four years, sparking increased talk of a recession.

The report heightened speculation that the Federal Reserve may cut interest rates at least a quarter-point and possibly a half-point to prop up growth.

“While a negative reading on job creation does not necessarily mean we are entering a recession, the likelihood of one has increased," said Paul Nolte at Hinsdale Investments.