Data showing Japan slipped into recession in the third quarter raised concerns on Monday about global economic health, hitting stocks and the price of oil.
European shares fell, before recovering slightly, and Wall Street looked set to open lower, according to index futures ESc1 1YMc1.
Tokyo’s Nikkei index .N225 lost 3 percent, its biggest one-day drop since August, after the news that the world’s third-largest economy unexpectedly shrank by an annualised 1.6 percent in July-September.
This followed a 7.3 percent contraction in the previous quarter, caused by a rise in national sales tax, and ran counter to economists’ forecasts for a 2.1 percent rebound.
The data initially pushed the yen to a seven-year low against the dollar, but as Tokyo stocks fell the Japanese currency rebounded.
The news also shaved $1 off the price of Brent crude oil, as demand would fall if economies slide, and sent ripples across Europe, where the FTSEurofirst 300 .FTEU3 pan-European share index was down 0.1 percent, having pared earlier losses.
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