Global Markets-Shares tumble, Bunds firms as volatility reigns

Global Markets-Shares tumble, Bunds firms as volatility reigns
Business & Markets 2013
Written by Reuters
Monday, 03 June 2013 16:25


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LONDON (June 3): Investors took profits on Monday from recent share rallies in the face of uncertainty over how much longer the current U.S. stimulus would continue, while data underscoring the fragility of China's economy weighed on oil.

European stocks followed a fresh dive on Asian markets to open 0.8 percent lower, as the week, which includes key U.S. jobs data and the monthly meetings of the European Central Bank and Bank of England, got underway.

"The overall theme for the coming weeks is going to be a very volatile trading environment and you are going to have the U.S. and Japan being a significant driver to what is happening in Europe," said Rabobank strategist Lyn Graham-Taylor.

A mixed reading in Chinese data kept intact worries about its growth momentum and weighed on oil as it slipped to $100 a barrel for the first time in a month, though the figures were not bad enough to trigger active selling in other growth sensitive commodity or currency markets.

In the debt market, safe-haven German bond futures saw as steady start to the week while there was more selling of euro zone periphery debt amid signs it 10-month rally may be drawing to a close.

The dollar index, measured against a basket of six key currencies, was down 0.3 percent as it hovered near the three-week low it hit at the end of last week.

The weakness saw the euro start the week up 0.2 percent at $1.3020.