Markets shaken by grim US industrial data

Fears that the fragile global economic recovery may be slipping pushed share indices down on Thursday. Markets in the US led the fall on the back of poor US manufacturing and labour data. The Dow Jones Industrial Average closed at 10,271.21, down 144.33 points.
 
London was also gloomy, with the FTSE-100 following the American lead, closing down 91.58 (1.73 per cent) at 5,211.29, while Germany's DAX and the CAC-40 in France lost 1.8 per cent and 2 per cent, respectively. Asian markets opened lower on Friday, Japan's Nikkei 225 down 1.4 per cent and China's Shanghai Composite down 1.3 per cent.
 
The latest Philadelphia Federal Reserve's index of current activity indicated a contraction for the first time since July 2009, with a reading of –7.7, from +5.1 in July. The number of people claiming unemployment benefit last week rose for the first time since November 2009.

Jeremy Cook of currency brokers World First said: "This will further heighten fears that the US economy is careering into the dreaded double-dip recession." 

Indicatively, gold touched its highest level since July as investors moved to safe havens.

Read a full report at the Telegraph. ·