Growth and debt crisis concerns drive shares, euro lower

Thu Sep 20, 2012 9:11am EDT
 
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By Marc Jones

LONDON (Reuters) - Global shares, the euro and oil prices fell on Thursday after weak Chinese and euro zone data underlined worries about global economic growth.

World shares and other risk markets have lost momentum this week with investors taking stock after the central banks of the United States, Japan and euro zone outlined plans for economic stimulus, driving a near 17 percent rise in the MNSI global index .MIWD00000PUS since June.

Wall Street was expected to open lower on Thursday. U.S. S&P stock futures pointed to a 0.3 percent drop at the start of trade with investors likely to latch on to the downbeat European and Asian mood.

"We have had the central banks come into action but some of the euphoria has already evaporated and we are looking at the economic data again which, generally speaking, are relatively weak," said Rabobank strategist Philip Marey.

Marey pointed to the Philly Fed index series due at 10 a.m. EDT (1400 GMT). "Another weak number could confirm that things aren't going as they should," he said.

A Reuters poll of 56 analysts sees the Philly Fed index improving to -4.0 from -7.1. Unemployment and consumer confidence data will also be released.

European equities .FTEU3 were down 0.3 percent by 1215 GMT and the MSCI world index was lower for the third time in four sessions. Markets in London, Paris and Frankfurt fell between 0.5 and 0.7 percent.

Euro zone Purchasing Managers Index data underlined the effect of the bloc's debt crisis. The composite PMI, which combines data from the manufacturing and services surveys, fell to 45.9 from 46.3 in August, its lowest since June 2009.   Continued...

 
A woman smiles as she walks past an electronic board displaying graphs showing recent movements of Japanese market indices, outside a brokerage in Tokyo February 15, 2012. REUTERS/Yuriko Nakao