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US indices fall, European stocks increase

01 February 2010 08:57 (UTC +04:00)

Baku- APA-Economics. Wall Street stocks slumped on Friday on persistent concerns over economic recovery, erasing early gains following data showing a stronger-than-expected US growth in the final quarter of last year, AAP reported.
The Dow Jones Industrial Average fell 53.13 points, or 0.52 per cent, to 10,067.33, posting losses in five of the last seven sessions.
The Nasdaq composite dipped 31.65 points, or 1.45 per cent, to 2,147.35 while the Standard & Poor’s 500 index slipped 10.66 points, 0.98 per cent, to 1,073.87.
All three key indices were up in early trading as the market initially cheered a government report showing the US economy roaring to life in the fourth quarter with a 5.7 per cent growth rate on the back of brisk business spending to replenish inventories.
The Commerce Department figures showed growth accelerated from the 2.2 per cent pace in the third quarter, when the economy expanded for the first time after four quarters of contraction and the worst recession in decades.
But the gains began evaporating two hours after the opening bell.
An unexpectedly strong fourth quarter growth spurt in the United States sparked a jump in European share prices Friday, with investors also hunting for bargains after recent losses.
European stocks have been under pressure for the past 10 days, weighed down by fears over the fate of debt-ridden economies in Greece and several other eurozone members as well as the prospect of tighter credit conditions in China.
In London, the FTSE 100 index of leading shares added 42.78 points, or 0.83 per cent to end the week at 5,188.52 points.
The German DAX gained 68.46 points, or 1.24 per cent, at 5,608.79 points.
The CAC 40 index in France rose 50.67 points, or 1.37 per cent, to 3,739.46 points.
Japanese stocks closed down 2.08 per cent on Friday as investors took their cue from an overnight slump on Wall Street and Toyota shares continue their slide.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index dropped 216.25 points to 10,198.04.