Shares slump around world

Stocks slumped worldwide after economic reports reinforced concern the global economy is slowing.

The slump followed reports that production at US factories dropped for the first time in six months and consumer sentiment fell.

The International Monetary Fund last week also cut economic expansion forecasts for Europe and Japan.

Britain's top share index tumbled to its lowest level in 12 weeks in early trading on Monday in a retreat that took in all sectors as fears over a consumer spending slowdown grew.

Wall Street on Friday tumbled to its lowest level in 5 1/2 months on earnings jitters but investors will glean support from the dollar clawing higher and oil prices falling below US$50 a barrel.

Across the Tasman, the stock market fell 1.37 per cent yesterday to its lowest since December 16, 2004. The benchmark S&P/ASX 200 index fell 54.9 points to 3959.4 after tumbling 1.7 per cent on Friday.

Asian markets fell sharply, with banks, telecoms and autos taking a big hit. The Nikkei share average tumbled 3.8 per cent to close at a four-month low.

- AGENCIES