World Stocks Fall Ahead Of U.S. Economic Data

An Egyptian trader talks under a screen displaying change -5.83 after trading was halted for 30 minutes on the Egyptian Exchange after the benchmark index fell 5 percent, tracking a plunge in other world markets at the stock market, in Cairo, Egypt, Tuesday, Aug. 9, 2011.The Egyptian Exchanges benchmark index plunged, with investors taking their cues from other international markets taking a beating on fears that the downgrade in the U.S.s credit rating could trigger a new global recession. (AP Photo/Amr Nabil)

BANGKOK - World stock markets fell Monday as high oil prices dampened enthusiasm for riskier assets like stocks ahead of the release of data likely to show that the U.S. economy is improving at a slow but steady clip.

Benchmark oil remained near $109 per barrel while the dollar rose against the euro but fell against the yen.

European stock markets headed lower in early trading. Britain's FTSE 100 shed 0.6 percent to 5,900.72. Germany's DAX lost 0.9 percent to 6,799.99 and France's CAC-40 lost 1.1 percent to 3,431.18. Wall Street was set to open lower, with Dow Jones industrial futures losing 0.4 percent to 12,910 and S&P 500 futures down 0.5 percent to 1,356.80.

In Asia, Japan's Nikkei 225 index ended down 0.1 percent at 9,633.9, giving up gains posted earlier in the day. Hong Kong's Hang fell 0.8 percent to 21,217.86. South Korea's Kospi lost 1.4 percent to 1,991.16. Australia's S&P/ASX 200 dropped 0.9 percent to 4,267.40.

But mainland Chinese shares advanced. The benchmark Shanghai Composite Index added 0.3 percent to 2,447.06 and the Shenzhen Composite Index gained 0.3 percent to 975.62.

U.S. consumer confidence figures to be released Tuesday and the Federal Reserve's so-called Beige Book report on economic activity due Wednesday are likely to show improvement, analysts said.

Credit Agricole CIB in Hong Kong said in an email that "economic data over coming days will likely prove encouraging, with more signs of ongoing economic recovery in the US in particular." In Australia, sentiment was hurt by higher oil prices and a strong currency, said Ric Spooner, chief market analyst at CMC Markets in Sydney. "The Australian consumer has to contend with the general impact of the higher Australian dollar, which is causing some nervousness to employment security and job security in some parts of the economy," he said. The higher Aussie dollar makes raises the cost of products sold abroad, hurting manufacturing exporters. Higher oil prices force motorists to spend more at the gas pump, which could dent discretionary spending. Among Australian shares, Billabong International Ltd. jumped 4.8 percent after the struggling surf wear retailer rejected a takeover offer from buyout company TPG Capital but said it would continue talks. Banking stocks fell following downgrades Friday by the Fitch ratings agency. Commonwealth Bank of Australia lost 0.5 percent, Westpac Banking shed 0.3 percent and National Australia Bank was down 0.1 percent. Higher oil prices translate into higher fuel costs for airlines, which are already struggling with 
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Source: Yellowbrix

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