European debt fears pummel markets

LONDON (AFP) - Global equities tumbled Friday as soaring state debts in Europe sent shivers through the markets for a second straight day and a jobs report provided a mixed picture of the US labour market.
In Paris, the CAC 40 plunged by 3.40pc to finish at 3,563.76 while Frankfurt’s Dax fell 1.79pc to end at 5,434.34 points and London’s benchmark FTSE 100 index slid 1.53 percent to close at 5,060.92 points.
The euro also took a beating, briefly falling under 1.36 dollars for the first time since May 20, 2009, before recovering in late trading, as risk-averse investors bolted for the safe-haven greenback.
“It is the same fears as yesterday,” said Arnaud de Champvallier, managing director of investment firm Turgot Asset Management, referring to the concerns over the mounting debts burdens of Greece, Spain and Portugal.
“This happened despite the release of satisfying company results and reassuring comments from European leaders. But the markets do not want to hear anything,” he said.
Across in Asia, Tokyo plunged 2.89 percent and Hong Kong nosedived 3.33 percent on renewed concerns about battered state finances in Europe, following New York’s worst finish since November.
In the United States, Wall Street wobbled after the much-awaited jobs report presented a muddled picture on the troubled labour sector that is key to a sustainable recovery from recession.
The Dow Jones Industrial Average fell 31.13 points (0.31 percent) to 9,971.05 at 1603 GMT, below the psychological 10,000 level and extending heavy day-earlier losses that had pushed the blue-chip index to a November low. The tech-heavy Nasdaq composite rose 2.49 points (0.12 percent) to 2,127.92, while the broad-market Standard & Poor’s 500 index drifted down 2.02 points (0.19 percent) to 1,061.09.
The Labor Department’s January labor report showed an unexpected loss of 20,000 jobs. Most analysts had forecast a gain of 15,000.