economy To faster change

World stock markets took a beating Monday on fears that the U.S. economy back into recession as the debt crisis in Europe was heating and economic indicators in the euro area have been collapsed.
Any unrest in the largest economy in the world cast a shadow over the markets, and a report Friday that the U.S. economy failed to add new jobs in August resulted in European and Asian stock markets falling sharply on Monday.
But the news from Europe was also discouraging. Wall Street, which was closed Monday due to Labor Day, braced for losses Tuesday after the returns in so-called peripheral euro area - Greece, Italy and Spain - has increased significantly against those of Germany, whose links are widely regarded as a safe haven.
Although retail sales in the euro zone increased by 17 nations unexpectedly in July, a survey of the service sector showed a slowdown across the continent Monday for the fifth consecutive month. The index of purchasing managers "for the euro area showed the service sector continued to grow - unlike manufacturing - but barely. This will add pressure on the European Central Bank to keep interest rates unchanged at its meeting this week.
Investors were also shaken by signs that the commitment of the Italian government for its austerity program is distorted. The government of Prime Minister Silvio Berlusconi has backtracked on some measures to reduce the deficit, prompting officials to urge EU Italy to stick to his plan promised.
The difference in interest rates between Greek and German benchmark 10-year bond, known as the spread, spiraling to new records Monday, more than 17.3 percentage points. Yields on Greek bonds were above 18 percent.