Global stock markets were having another lackluster day today amid ongoing worries over the state of the world economy, which has piled the pressure on oil prices in particular.
In Europe, France's CAC 40 was down 0.5 per cent to 4,261 while Germany's DAX fell 1.2 per cent to 9,470. The FTSE 100 index of leading British shares was 0.6 per cent lower at 5,867. US stocks were poised for modest gains at the open, with Dow futures and the broader S&P 500 futures up 0.2 per cent.
As well as fretting over the scale of the economic slowdown in China following further downbeat economic data earlier this week, investors are beginning to wonder whether the US recovery is as strong as thought.
Weak data this week has elevated those concerns, prompting big falls in the price of oil. Today, oil prices recovered some ground, but not much. A barrel of benchmark New York crude was up 43 cents at USD 30.31 a barrel while Brent, the international standard traded in London, rose 53 cents to USD 33.25 a barrel.
Added to the mix today were renewed fears over the slowdown in Europe. A closely watched survey from financial information company Markit found the economic recovery in the 19-country eurozone losing steam in January, a sign that the turmoil in global financial markets is beginning to weigh on business activity.
Further figures later today, including monthly jobs data from private payrolls firm ADP will be closely monitored in the context of whether the Federal Reserve will follow up its rate hike in December with another one next month.
The busy US calendar culminates Friday with the monthly nonfarm payrolls data for January, which often set the market tone for a week or two after their release.
"We may start to see markets quieten down over the course of the session as we gear up to Friday's jobs report," said James Hughes, chief market analyst at GKFX.
Japan's benchmark Nikkei 225 lost 3.2 per cent to finish at 17,191.25. South Korea's Kospi slipped 0.8 per cent to 1,890.67.
Hong Kong's Hang Seng was down 2.3 per cent at 18,991.59 and China's Shanghai Composite fell 0.4 per cent to 2,739.25. Australia's S&P/ASX 200 dropped 2.3 per cent to 4,876.80.
It was a pretty flat day in currency markets with the euro up 0.1 percent at USD 1.0933 and the dollar 0.3 per cent lower at 119.41 yen.
