Euro shares plunge on U.S. payroll numbers, global slowing;DAX off 3.42%

Investing.com - European stocks plunged Friday, hitting five month lows, as U.S. payroll numbers and climbing unemployment disappointed investors, as well as bearish economic data from China and the euro zone weighed on equity prices

At the close of European trade, the EURO STOXX 50 gave back 2.37%, France’s CAC 40 dropped 2.21%, Germany’s DAX 30 plunged 3.42% and the FTSE 100 slipped 1.14%

Sparking the equity sell off, U.S. non-farm payrolls rose less-than-expected last month, government data showed on Friday.

In the report, the U.S. Department of Labor said non-farm payrolls rose to a seasonally adjusted 69K, from 77K in the preceding month whose figure was revised down from 115K.

Analysts had expected U.S. non-farm payrolls to rise 150K last month. 
In other U.S. news, personal spending rose last month, official data showed on Friday.

In a report, the Bureau of Economic Analysis said that personal spending rose to a seasonally adjusted 0.3%, from 0.2% in the preceding month whose figure was revised down from 0.3%.

Analysts had expected personal spending to rise 0.3% last month.
In addition, the U.S. ISM manufacturing PMI fell more-than-expected last month, industry data showed on Friday.

In a report, the Institute for Supply Management said that the ISM manufacturing PMI fell to 53.5, from 54.8 in the preceding month.

Analysts had expected the ISM manufacturing PMI to fall to 53.9 last month.
China’s manufacturing Purchasing Managers index fell to 50.4 in May from 53.3 in April increasing fears of a global slowdown. 

Another report indicated that unemployment in the euro zone reached 11% in April and March, the highest since the data started in 1995, 

The European Central Bank and Italy pushed Germany to relent its opposition to direct euro zone aid to struggling banks in an effort to end the crisis.

Meanwhile, yields on German two, five and 30 year bonds plunged to record lows today, as well as on 10 year treasuries and British gilts.

Carmakers Daimler and BMW gave back 4.8% and 4.1% respectively on the  negative economic reports.

Anheuser Busch, the world’s largest brewer, dipped 3.7% on the Brazilian government increasing beer taxes more than forecasted.

Swatch Group and RIchemont, watch makers, fell 4% and 5.2% respectively as China’s manufacturing slowdown raised worries that demand for Swiss watches will drop in the Asian nation.

In bullish news, BP gained 1.5% after advising it is seeking to sell its stake in TNK.

HMV soared 10% after agreeing to sell its concert venue, Hammersmith Apollo, to Stage C LTD In the U.S., equity markets traded lower midsession.

The Dow Jones Industrial Average gave back 1.76%, S&P 500 dropped 2.01%, while the tech heavy Nasdaq plunged 2.20%.

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