May 23rd 2013

Private-sector activity in the 17-nation euro zone continued to shrink in May, albeit at a slower pace than in previous months, according to the preliminary Market composite purchasing managers' index released on Thursday.The Stoxx Europe 600 index slumped 1.5% to 305.96, retreating after closing at the highest level since June 2008, reached on Wednesday.Banks posted some of the biggest losses, with Royal Bank of Scotland Group, Commerzbank and BNP Paribas to name a few.

The Nikkei Stock Average JP:NIK -7.32%  , which had jumped 2% earlier on Thursday, ended the day 7.3% lower at 14,483.98 in a spectacular turnaround. The drop is the Nikkei’s worst single-day loss since March 15, 2011, when the market was overwhelmed by selling in the wake of a calamitous earthquake and tsunami. The benchmark’s closing level was nearly 1,460 points from the day’s peak.

U.S. stock market futures fell sharply Thursday, as fears over a tapering of the Federal Reserve’s bond-buying program continued to play out. Those worries and weak China data led to heavy losses for global stocks, with Japan equities suffering their biggest one-day loss in more than two years.Data will also be key for investors, with U.S. jobless claims expected to drop back down after a surprising spike the prior week, sales of new family homes, and house prices.Futures for the Dow Jones Industrial Average fell 146 points, while those for the Standard & Poor’s 500 index slid close to 20 points. Futures for the Nasdaq 100 index fell 35.50 points.

Gold futures rose sharply Thursday, as the dollar dropped against the Japanese yen amid spectacular losses for stocks in Tokyo. Hints of a tapering of stimulus efforts by the U.S. Federal Reserve in coming months and downbeat China data contributed to a Japan stock plunge.Gold futures for delivery in June jumped nearly $18, or 1.3%, to sell for $1,385.50 an ounce in electronic trading.