World stocks down after US cuts 3Q growth estimate, survey shows China manufacturing slowdown

BANGKOK (AP) — World stocks fell Wednesday after a survey showed China’s factories are cutting production and the U.S. lowered its third quarter growth estimate, adding to pessimism from Europe’s simmering debt crisis.

Benchmark oil fell below $97 a barrel while the dollar strengthened against the euro and held steady against the yen.

European shares sank in early trading. Britain’s FTSE 100 fell 0.3 percent to 5,191.94 and Germany’s DAX lost 0.4 percent to 5513.08. France’s CAC-40 was down 1 percent to 2,844.49.

Futures augured a lower open on Wall Street. Dow Jones industrial futures lost 0.7 percent to 11,362 while S&P 500 futures slipped 0.8 percent to 1,173.10.

Asian stock markets posted broad losses earlier in the day, hit by the signs of weakness in the world’s two biggest economies. The U.S., a major market for Asia’s exporters, grew at a 2 percent annual rate from July through September, down from an initial estimate of 2.5 percent. China, meanwhile, suffered a fall in manufacturing activity in November, according to a preliminary survey.

Hong Kong’s Hang Seng slid 2.1 percent to 17,864.43. South Korea’s Kospi lost 2.4 percent to 1,783.10 and Australia’s S&P/ASX 200 shed 2 percent to 4,051. Mainland China’s Shanghai Composite Index fell 0.7 percent to 2,395.07, posting its sixth straight session of losses. Japanese stock markets were closed for a public holiday. For more visit: Yahoo finance

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