European, US stocks slip as tensions linger over future of economic recovery

World stocks mixed amid uncertain growth outlook

LONDON — U.S. and European stocks slipped Monday amid uncertainty about the outlook of the global economic recovery, with near-record gold prices suggesting sentiment remains tense as investors seek safe assets.

An increase in U.S. corporate spending and a big jump in orders for manufactured goods last week supported prices initially. After gains in Asian trading, however, sentiment waned over the day.

Britain’s FTSE 100 benchmark index was down 0.4 percent at 5,575.61 while Germany’s DAX was 0.2 percent lower at 6,285.68. France’s CAC-40 was down 0.3 percent at 3,771.85.

The Dow industrial average was down 0.2 percent at 10,833.92 and the Standard & Poor’s 500 down 0.3 percent at 1,144.89.

The Dow has risen 8.2 percent so far in September as investors scaled back their fears of a double-dip recession in the world’s largest economy. Still, the index is only up 4 percent for the year and remains 3 percent below its 2010 high reached on April 26.

Meanwhile, the market for gold — a safe haven for investors — showed underlying doubt about the economic recovery lingers. Prices for the precious metal were near a record high of $1,300 an ounce.

Some analysts say stock markets could slide if U.S. consumer confidence figures on Tuesday and second quarter economic growth on Thursday are disappointing. Japan, which reported a sixth consecutive month of slowing export growth on Monday, also releases a slew of indicators this week including its “tankan” business confidence survey.

“Going up too fast is never considered prudent,” brokerage India Infoline said in a market report. “Key regions like the U.S., Europe and Japan are just limping along. If markets rise on one good statistics one day, there is always a chance they might fall on a bad report some other day.”

Speculation has mounted that the Federal Reserve could in coming months move to boost the economy by buying assets from banks, thereby lowering interest rates in credit markets. That has weighed on the dollar, particularly in its value against the euro, which on Monday traded at 1.3465, down from the five-month high of $1.3492 it hit late Friday in New York.

Corporate news was mostly upbeat and showed appetite for dealmaking. Consumer products maker Unilever NV saw its shares rise 2.6 percent after it said it had agreed to buy U.S. beauty products company Albert Culver for $3.7 billion. Meanwhile, Southwest Airlines Co. said it will buy AirTran Holdings Inc. for about $1.4 billion and Wal-Mart Stores Inc. proposed to buy South African consumer goods distributor Massmart Holdings Ltd. for about $4.25 billion.

Earlier in Asia, Japan’s Nikkei 225 stock average climbed 1.4 percent to 9,603.14 with exporters advancing as investors bet the central bank will try to weaken the yen with further monetary easing when it meets next week. The yen hit fresh 15-year highs against the U.S. dollar this month, and led the government to intervene in currency markets to weaken the yen for the first time in six years.

The dollar was up to 84.25 yen from 84.17 yen on Friday.

Missing out on the gains in Tokyo was Japan’s consumer finance sector, which wilted on a Nikkei report that Takefuji Corp. was preparing to file for bankruptcy protection. Rival lenders Acom Co. and Promise Co. both plunged by about 12 percent.

South Korea’s Kospi added 0.8 percent to 1,860.83 and Hong Kong Hang’s Seng advanced 1 percent to 22,182.80. China’s Shanghai Composite Index rose 1.4 percent to 2,627.97.

Australia’s S&P/ASX 200 jumped 1.6 percent. Markets in India, Taiwan and Singapore also climbed while Malaysia and Vietnam dropped.

Benchmark crude for November delivery was down 65 cents at $75.84 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.31 to settle at $76.49 a barrel on Friday.