FROM MORRISON SECURITIES PTY. LTD:
U.S. STOCK MARKETS
Another dismal U.S. jobs report triggered the year's biggest stock selloff and erased what was left of the Dow Jones Industrial Average's 2012 gains.
The Dow shed 274.88 points, or 2.2%, to 12118.57, on Friday. The Standard & Poor's 500-stock index tumbled 32.29 points, or 2.5%, to 1278.04, and the Nasdaq Composite lost 79.86 points, or 2.8%, to 2747.48.
Stocks slumped the after the U.S. economy added 69,000 jobs in May, according to the Labor Department, the smallest gain in a year and well below forecasts for an increase of 155,000.
March and April job gains both were revised down. Friday's report was the third in as many months to come in shy of expectations. The unemployment rate ticked one-tenth of a percentage point higher to 8.2%, the first increase in nearly a year.
A separate report showed that the U.S. manufacturing sector slowed down a bit in May. Both the Dow and S&P 500 staged their biggest first-quarter ascents in over a decade; just one month ago, the Dow closed at a four-and-a-half-year high.
Blue chips have since fallen nearly 9%, and the Dow industrials closed down 0.8% for the year. Investors have been on tenterhooks in recent weeks over Greece's potential exit from the euro zone and the instability of Spanish banks.
Worries about Europe have compounded concerns that global economic growth is slowing. The S&P 500 is clinging to gains of 1.6%, and the Nasdaq remains 5.4% higher.
Groupon dropped 8.9% as more than 600 million shares were freed to be traded by insiders and early investors with the end of the "lockup" period that followed the daily-deals provider's public offering last year.
Facebook fell 6.4% after snapping a three-session losing streak on Thursday. The stock is trading 27% below its $38 initial-public-offering price.
EUROPEAN STOCK MARKETS
Europe's benchmark Stoxx 600 index slumped to its lowest close since Dec. 2011 following disastrous nonfarm payrolls data and ongoing concerns about the health of the euro zone, Friday.
The benchmark Stoxx 600 index ended down 1.9% at 235.09. This was its lowest closing level since Dec. 19, when the index closed at 233.75. The U.K.'s FTSE 100 finished down 1.1% at 5260.19, its lowest close since Nov. 25 2011.
Elsewhere, Frankfurt's DAX closed 3.4% lower at 6050.29 and Paris's CAC-40 ended down 2.2% at 2950.47. At the close of European equity markets, the Dow Jones Industrial Average was down 1.7% and the S&P 500 was 1.8% lower.
Yields on government bonds from U.S. Treasurys to German bunds all hit new lows, as the release of much weaker-than-expected nonfarm payrolls figures compounded an earlier string of downbeat manufacturing data out of China, the euro zone and the U.K.
The 10-year German bund yield fell to a record low of 1.13% and the 10-year gilt yield hit a record low of 1.43% after the payrolls. Friday saw the release of more data than you can shake a stick at--all of it pretty grim.
Italy's FTSE MIB dropped 1.0% to 12,739.98. Spain's benchmark IBEX-35 fared better than peers, ending down 0.4% at 6065.00. Traders pointed to news that Spain's regions posted a balanced budget in the first quarter, suggesting that they are on track to meet ambitious austerity targets, despite fresh signs of strain in the country's economy and banks.
Economic indicators showed further deterioration in global growth. The euro-zone manufacturing purchasing managers' index for May came in at 45.1 from 45.9 in April.
Meanwhile, figures showed Spanish manufacturing activity fell at its fastest rate in three years in May, while the Italian unemployment rate rose to an all-time high in April.
The Italian manufacturing PMI for May came in worse than expected, at 43.4. And the bad news didn't stop there. The U.K.'s May PMI manufacturing survey was also weaker than expected, dropping to 45.9 from 50.2 in April.
This week, the FTSE 100 is closed for the first two days of the week for the Queen's Jubilee celebrations. The focus will likely continue to be on the euro zone and global economic data.
ASIA-PACIFIC STOCK MARKETS
Asian markets were mostly lower after manufacturing activity slowed across Asia in May. Japan's Nikkei Stock Average lost 1.2%, and Hong Kong's Hang Seng Index fell 0.4%.
The Nikkei and Hang Seng fell 1.6% and 0.8%, respectively, on the week. The jobs report sparked a rush out of stocks into haven assets. Two measures of Chinese manufacturing activity were released Friday, both confirming that Asia's largest economy is slowing more quickly than expected.
Gold prices shot up 3.7%, to settle at $1,620.50 a troy ounce. The yield on 10-year Treasury notes fell to 1.437% in intraday trading, dropping below 1.5% for the first time ever, ending at 1.467%.
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