Source: CCTV.com

04-28-2009 11:06

Stock markets worldwide fell on Monday on concerns the spread of a new strain of flu could dampen optimism about the economy. For more details, here's Reuters' correspondent reporting from New York.

Stock markets worldwide fell on Monday on concerns the spread of a new strain of flu could dampen optimism about the economy.

Wall Street spent the day wondering if a possible global flu outbreak would reverse any of the positive signs coming from the economy. Traders, however, cautioned against a market over-reaction, saying it is still too early to tell if the swine flu will actually escalate into a pandemic.

Doreen Mogavero, CEO of Mogavero Lee and Company, says, "I think people are being cautious so that it does not become one. At this moment I don't think there are levels that are anywhere near pandemonium - so we need to be sure about that and be calm, being calm is a much better way to approach this."

Stocks bounced between losses and gains as drug stocks lent some support, but the market gave-up ground in the end.

Certain U.S. pork products were banned in several countries, including China, and Russia even banned specific beef imports from the U.S. The U.S. response: the bans were not based on science and could seriously disrupt trade. America exports nearly 20 percent of its pork. Despite the name, swine flu is not related to hogs nor is it transmitted by eating pork. Shares of Smithfield Foods, a major pork producer - fell more than 12 percent.

Meanwhile, several countries also announced travel restrictions as new cases show-up around the globe.

In other market reaction: oil prices tumbled along with the airlines on fear less travel will mean less jet fuel demand.

Gold prices fell, but investors looking for a safe place to hide, put a limit on the selling.

And in Europe -- stocks ended mixed, but well above their worst levels of the day.

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Editor:Qin Yongjing