Global equities rocked by US economic fears, yen strains

WORLD stock markets sank heavily yesterday as investors shunned risky assets amid renewed fears over the United States economy, while Tokyo also dived on concern over the soaring yen, dealers said.

In late morning European deals, London shed 0.95 per cent as investors returned from a long weekend after a public holiday on Monday. Frankfurt slid 0.78 per cent, Paris dived 1.03 per cent and Madrid dipped 1.27 per cent.

"The market is still definitely in a negative mindset, as the engine of world growth - the United States economy - seems to be stalling," said analyst Phil Gillett at trading firm Spreadex in London. "Risk aversion is still at the forefront of traders' minds," he added.AFP