Reply #5: World stocks fall on economic worries

[ozymandius]

LONDON (Reuters) – World stocks fell on Tuesday in markets dominated by concerns the U.S. economy is sliding back into recession, prompting further flows into safe-haven assets.

The yen - a favorite for carry trades at times of economic stress - hovered back near 15-year high against the dollar after investors brushed off Japan's attempt to weaken the currency, yields on benchmark German government bonds hit record highs and the Swiss franc soared against the euro and dollar.

In Europe, the FTSEurofirst 300 (.FTEU3) index dropped 1.1 percent and the Thomson Reuters Peripheral Eurozone Countries Index (.TRXFLDPIPU) fell 1.3 percent. "If you look at all the noise, all the volatility and all the nervousness, it's clear that this market has one major fear at the moment and that's the double dip," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.

Yields on benchmark 10-year German Bunds hit record lows at 2.085 percent, while those on 10-year U.S. Treasuries slipped 2 basis points to 2.5143 percent, hovering near 18-month low.

http://news.yahoo.com/s/nm/20100831/bs_nm/us_markets_global