Stocks slump, oil continues decline as recovery hopes dim

LONDON: Stocks fell, pushing the MSCI World Index lower for a fifth day, oil retreated and the yen gained on speculation Group of Eight officials meeting in Italy have little scope to combat the worst recession since World War II.

The MSCI World Index of 23 developed countries slipped 0.6 percent at 11:49 am in London, the longest stretch of declines since March. Oil slumped for a sixth day in New York, the worst losing streak since December, while the yen rose to a six-week high against the euro and the dollar. Russia's ruble fell 0.9 percent versus the dollar to the lowest level in seven weeks.

Leaders from the G8 most-industrialized nations met in L'Aquila, Italy yesterday to tackle shrinking economies and rising unemployment even after the US pledged $12.8 trillion to end the recession. Alcoa Inc's results kick off a US earnings season that will extend the stretch of profit declines for Standard & Poor's 500 Index companies to a record eight quarters, according to analysts' estimates compiled by Bloomberg. Japan's machinery orders unexpectedly fell, a government report showed yesterday.