Weak US and factory data hits FTSE
Jun 02 2012
Bleak US jobs figures and worrying manufacturing data from the UK and overseas saw London's leading shares index continue its miserable run.
The FTSE 100 Index fell 60.7 points to 5260.2 as the raft of gloomy surveys highlighted fears that the eurozone crisis is infecting economies worldwide. The falls mean London's blue chip shares index has started June on a low after suffering its worst month for three years in May.
Investors were rattled by sharp declines in manufacturing purchasing managers' surveys for the eurozone and the UK, following on from data showing stagnation in growth for the same sector in China.
But the biggest blow to markets came from the United States as closely watched US non-farm payroll numbers showed a rise in employment of 69,000 in May, compared with Wall Street forecasts for a rise of 150,000.
The latest Markit/CIPS survey for the UK manufacturing sector, where a reading above 50 represents growth, fell to 45.9 in May from 50.2 the previous month, well below City hopes for a figure just below 50. It is the second-steepest fall in the survey's 20-year history and came as new orders dropped at the fastest pace since March 2009.
Markets in Europe were down, with Germany's Dax and France's Cac-40 off 3% and 2% respectively, while Wall Street's Dow Jones Industrial Average was 1.7% lower as the London market closed.
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