World shares fall amid fears over U.S. economy and European debt crisis

Shares around the world have fallen after the market opening on Monday due to bleak economic figures for the U.S. economy and the continuing European debt crisis.

European indexes were particularly hard-hit after last weeks weak Spanish bond auction. This fuels the speculation that the Spanish government may need to seek a bailout, an unfortunate path that Greece, Portugal, and Ireland have already followed in the recent past.

Bond yields for European countries have begun to rise. Rising bond yield are normally a sign of an economy that will soon be in trouble. Making government funding much more difficult and sometime resulting in the need for emergency financial assistance.

In addition to the bad European news, the Chinese government also revised growth forecasts for the Chinese economy. This is seen as a cause for concern due to China’s recent history of very stung growth.

In addition to these problems, The U.S. revealed poor employment increases last week.  Most of the rest of the world looks to the U.S. economy as a sign of how the world economy is doing. If the outlook for the U.S. economy is favorable, the rest of the world will typically experience a burgeoning of their stock prices as well. This could very well have been fuel for growth around the world, as the U.S. economy saw  increasing growth and positive prospects. Now that the recovery looks uncertain, other stocks around the world will begin to waver as well.

In addition to the issues with the gains in employment, it is also believed that high oil prices in the U.S. will falter recovery and growth in the United States. Luckily, benchmark oil for May delivery dropped 32 cents to $102.15.

Wall Street seemed to be ready to forget about last weeks disappointments and mostly remained the same. Dow futures went up by 0.2 percent to 12,879. S&P futures remained the same.

France’s CAC-40 dropped by 1 percent to 3,287, and the German DAX fell by .08 percent to 6,723. The FTSE index of Great Britain fell 0.8 percent to 5,675. The euro fell 0.3 percent to $1.3079.

Tokyo’s Nikkei 225 index slipped 0.1 percent to 9,538.02 and Hong Kong’s Hang Seng fell 1.1 percent to 20,362.22. South Korea’s Kospi shed 0.1 percent to 1,994.41.

China’s Shanghai Composite Index, on the other hand, rose 0.9 percent to 2,305.86.

The benchmark indexes in Australia, Thailand and India were down. Those for Taiwan, New Zealand, and Singapore were up.

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