European stocks extended their losses yesterday afternoon to be down 2.4 per cent as commodity-related shares tumbled on renewed fears that a global slowdown would dent appetite for oil and metal.
At 1500 GMT, the FTSEurofirst 300 index of top European shares was down 2.4 per cent at 804.91 points. Rio Tinto dropped 12 per cent, Xstrata shed 8.5 per cent and Total fell 4.5 per cent.
Adding to the gloom, market research firm IDC said the PC market will slow as the financial turmoil spreads. It sees worldwide PC shipments growing 3.8 per cent in 2009 with shipment value falling by 5.3 per cent. Infineon was down 29 per cent.
The German chipmaker warned that its already bleak prospects for 2009 may worsen if its memory chip unit Qimonda folds and it fails to cut more costs. Around Europe, UK's FTSE 100 index was down 1.8 per cent, Germany's DAX index down 3.1 per cent, and France's CAC 40 down 2.8 per cent.
Oil was slightly up, around $47 a barrel, but the gains could be limited as further signs of weakening US oil demand could emerge.
On the metal side, London Metal Exchange copper fell 5.7 per cent to a low of $3,352 per tonne on a worsening demand outlook, said traders.
On Wall Street, US stocks dropped in early trade, hit by a gloomy outlook from Tech Bellwether Research In Motion Ltd and data showing labour market weakness suggested a deepening slump.
European car makers took a beating after their US peers GM, Chrysler and Ford Motor Co posted a drop in combined US sales of nearly 40 per cent for November.
In addition, the VDA association of German carmakers said it saw more trouble ahead as the market shrinks further next year. Daimler, BMW and Peugeot were down between 3.2 and 4.8 per cent.
On the macro side, euro zone services activity fell further than initially thought in November to a record low while inflationary pressures continued to subside, a key survey showed.
The picture was also grim on the retail side, with the euro zone retail sales falling much more than expected in October, underlining weak consumer demand.