LONDON – World share markets fell for a seventh day Thursday, hit by evidence that Europe's debt crisis has stalled economic growth and as concern over the fiscal problems facing the United States ratchets up. Economic growth in Germany, Europe's largest economy, cooled to 0.2 percent over the July-September period compared with the previous three months, while data showed the wider 17-nation euro zone has slipped back into recession. “The global economy faces some severe headwinds. Against that backdrop we see short-term de-risking of portfolios,” said Abi Oladimeji, head of investment strategy at Thomas Miller Investment. The FTSEurofirst 300 index of top European shares was down 0.5 percent at 1,083.40 points, having fallen 1 percent on Wednesday. London's FTSE 100, Frankfurt's DAX and Paris's CAC-40 were around 0.2 to 0.4 percent lower. Economic output in the euro area fell 0.1 percent in the third quarter after falling 0.2 percent in the April to June period, sending the region into its second recession since 2009. “The double-dip is a fact,” said Martin Van Vliet, an economist at ING Bank. “What you notice is that the recession in southern Europe is slowly creeping to other countries.” The MSCI world equity index was down 0.15 percent at 318.15 points and has now lost 3.3 percent this month. MSCI's broadest index of Asia Pacific shares outside Japan fell 1 percent. World stocks are now on course for a seventh successive day of losses, spooked by the prospect of a slowdown in the giant US economy if it doesn't find a political agreement to avoid the ‘fiscal cliff' — a series of spending cuts and tax rises due to take effect early next year. US stocks fell more than 1 percent on Wednesday after President Barack Obama reiterated his call for the wealthy to pay higher taxes, setting the stage for a budget battle with Congressional Republicans. US stock index futures pointed to a slight recovery for Wall Street on Thursday, though data on the jobs market, consumer inflation and business activity in New York and Philadelphia will be closely watched. – Reuters
