World Stocks Slide As Economic Recovery Hopes Wane

PAN PYLAS

LONDON (AP) — World stocks slid Monday as the strength of the dollar depressed commodity prices and weak U.S. manufacturing data reined in hopes of a speedy turnaround in the world's largest economy.

In Europe, stock indexes fell sharply following earlier losses in Asia, with the FTSE 100 index of leading British shares closing down 115.94 points, or 2.6 percent, at 4,326.01. Germany's DAX ended down 179.30 points, or 3.5 percent, at 4,889.94 while the CAC-40 in France dropped 106.56 points, or 3.2 percent, at 3,219.58.

In the U.S., the Dow Jones industrial average was down 204.43 points, or 2.3 percent, at 8,594.83 around midday New York time while the broader Standard & Poor's 500 index fell 23.61 points, or 2.5 percent, to 922.60.

Investors had been expecting Wall Street to open lower but a weak Empire State manufacturing survey reinforced the sell-off.

The monthly index into manufacturing conditions around the New York region fell to minus 9.4 in June from minus 4.6 the previous month in a further sign that any economic recovery in the U.S. will be slow and protracted.