Job fears and bird flu hit top flight

Growing doubts over the health of the United States’ economy and fears over a ­possible bird-flu pandemic took their toll on global stock ­markets ­yesterday.

London’s benchmark FTSE 100 index closed down 94.34 points or 1.5 per cent at 6,249.78, capping its third day of sharp losses, after figures showed the world’s biggest economy created far fewer jobs than expected in March.

Market falls were echoed in Europe, with the Cac 40 in Paris down 1.7 per cent and the Dax in Frankfurt off by just over 2 per cent.

David Madden, market ­analyst at IG, said: “The FTSE is at a two-month low after disappointing non-farm payroll ­figures triggered a sell off.

“Equity markets are still well up since the start of the year, but the reaction to the US data shows us how quickly traders will take their money off the table.”

Economic fears were compounded by nervousness about a recent outbreak of deadly bird flu in China.

Six people have died and authorities have ordered the slaughter of all poultry at a Shanghai market where the virus was detected.

Worries about the impact on global travel sent airline stocks diving, with British Airways owner International Airlines Group falling 6.9 per cent or 17.4p to 234.9p and Thomson owner TUI Travel plunging 14.6p or 4.7 per cent to 298.6p.

EasyJet, a new entrant to the FTSE 100, shed 6.4 per cent or 70p to 1,027p, with wider market uncertainty compounded by its half-year trading update which highlighted continued pressure from fuel prices and the weaker pound.

The prospect of another weekend of cold weather did little for confidence in blue-chip retail stocks, with Next closing down 155p or 3.6 per cent at 4,170p.

In New York, US stocks ended their worst week this year with more losses on Friday and the dollar was also down against major currencies. The Dow Jones dropped 40.86 points to close at 14,565.25. The Standard & Poor’s 500 Index .SPX dropped 6.70 points, or 0.43 per cent, to end at 1,553.28. The Nasdaq Composite Index dropped 21.12 points, or 0.66 per cent, to 3,203.86.