BP: OIL SPILL COSTS REACH $3.1 BILLION
Baku, July 5 (AZERTAC). World stock and oil prices fell on Monday on growing concerns of slowdowns in the United States and China -- the two main pillars of global growth, though the dollar was off its two-month low, according to VOA.
Trading was expected to be light on Monday because of the U.S. Independence Day holiday.
Data showing the U.S. labor market shrank for the first time this year in June, slower Chinese manufacturing activity and euro zone austerity measures fueled concerns over prospects for the global economy.
"Double-dip (recession) fears are the pervading influence on market psychology at present even as European sovereign (debt) concerns appear to be easing," said Mitul Kotecha, global head of foreign exchange strategy at Credit Agricole CIB in Hong Kong.
World stocks measured by MSCI All-Country World Index dipped 0.2 percent after losing nearly 4 percent last week. The index has lost 16.2 percent since mid-April, and is down 11 percent for the year.
The index carried a one-year forward price-to-earnings ratio of 11.9, a level last seen in April 2009 and well below its 10-year average of 15.42, according to Thomson Reuters DataStream.
By comparison, MSCI emerging equities index .MSCIEF had a one-year forward P/E of 10.76, in line with its 10-year average of 10.8, DataStream showed.
Europe`s FTSEurofirst 300 .FTEU3 drifted 0.1 percent lower, with the continent`s banks .SX7P losing 0.5 percent.
French Economy Minister Christine Lagarde said on Saturday that stress test results to be published on July 23 will show that "banks in Europe are solid and healthy."
However, "there is a certain amount of skepticism that the stress tests (on banks) ... will either be fudged or the complete results won`t be published. What we need is clarity," said Felicity Smith, fund manager at Bedlam Asset Management.
In Asia, Tokyo`s Nikkei average .N225 put on 0.7 percent, while the Shanghai Composite Index .SSEC dropped 0.8 percent. Brazil`s Bovespa index .BVSP slipped 0.2 percent.
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