World stocks drop on Ukraine, China jitters
LONDON, England
WORLD stock markets mostly fell Tuesday as concerns resurfaced of instability in Ukraine and an economic slowdown in China.
Ukraine has sent tanks and troops to reclaim government buildings being occupied by pro-Russian gunmen in the eastern part of the country. European governments have accused Russia of instigating the activists, raising the prospect of escalating violence and more sanctions against Moscow, possibly affecting the valuable energy trade
As a result, Europe’s markets fared worst on Tuesday. Germany’s DAX was down 1 per cent at 9,248.22 while France’s CAC 40 was down 0.3 per cent at 4,370.58. Britain’s FTSE 100 shed 0.4 per cent to 6,560.73.
Corporate earnings failed to pick up the mood, with drugmaker Johnson & Johnson reporting a rise in profits and Coca-Cola matching expectations.
On Wall Street, the Dow was down 0.1 per cent at 16,145.69 and the S&P 500 was 0.2 per cent lower at 1,827.27. The Nasdaq, which has been volatile over the past week, was down a sharper 0.7 per cent as investors continue to worry about the value of technology stocks.
Earlier, in Asia, investors were mainly preoccupied with Chinese data showing the money supply dropped, a bad omen ahead of first quarter economic growth figures due Wednesday.
Hong Kong’s Hang Seng closed down 1.6 per cent at 22,671.26 and the Shanghai Composite Index shed 1.4 per cent to 2,101.60.
China’s leaders are targeting growth of 7.5 per cent this year for the world’s second-biggest economy. But exports and imports have been weak in the first quarter, suggesting the economy is slowing and raising the risk of job losses. China’s growth of 7.7 per cent last year tied 2012 for the slowest since 1999.
South Korea’s Kospi fell 0.2 per cent to 1,992.27 while Japan’s Nikkei 225 gained 0.6 per cent to close at 13,996.81 thanks to a drop in the dollar, which was down 0.2 per cent at 101.65 yen. A weak yen is a plus for many Japanese companies because they rely on exports.
In other markets, the euro was flat at $1.3822 and the benchmark US crude contract for May delivery was down 20 cents at $103.85 a barrel in electronic trading on the New York Mercantile Exchange.