Global stocks and crude oil fell on Monday after data released last week showed a sharp slowdown in U.S. jobs growth, raising concerns about the strength of the world's largest economy.
Wall Street opened 1 percent lower, following an earlier slide in Asian equity markets, and crude futures also fell more than 1 percent as investors reacted for the first time to U.S. Labor Department jobs data for March, released on Friday.
The report showed just 120,000 jobs were added last month, far below the market's expectations of 203,000 and the smallest increase since October. U.S. equity markets were closed for Good Friday.
Major markets in Europe and Canada, and some markets in Asia, including Australia and Hong Kong, were closed on Monday.
We're seeing more overhang from Friday's weak payrolls report, said Gennadiy Goldberg, interest-rate strategist at 4Cast, Ltd. in New York.
It definitely suggests that it's not a one-way trip out of the mess we're in at this point. The market was getting a little too optimistic on the data front.
The Dow Jones industrial average <.DJI> was down 146.52 points, or 1.12 percent, at 12,913.62. The Standard & Poor's 500 Index <.SPX> was down 18.69 points, or 1.34 percent, at 1,379.39. The Nasdaq Composite Index <.IXIC> was down 44.08 points, or 1.43 percent, at 3,036.42.
MSCI's all-country world equity index <.MIWD00000PUS> slipped 0.9 percent near to lows last seen a month ago.
Oil prices fell more than $1 a barrel after Iran agreed to resume talks over its nuclear program, easing fears of a supply disruption in the Middle East.
Prices were also under pressure on concerns about the pace of U.S. economic recovery.
Brent crude was down $1.58 a barrel to $121.85. U.S. oil traded $1.79 a barrel lower at $101.52.
U.S. Treasury debt prices rose, reflecting expectations that last week's disappointing U.S. payrolls report had increased the chances of a third round of monetary easing measures by the Federal Reserve.
The benchmark 10-year Treasury note was up 5/32 higher in price to yield 2.04 percent.
The dollar dropped to a one-month low against the yen as market participants mulled the significance of last week's weaker-than-expected U.S. employment data.
The dollar was weighed by the slowdown in jobs growth, which bolstered views the Fed could yet ease policy further to boost the economy.
Gold prices rose more than 1 percent, recovering from last week's hefty drop, on revived hopes for fresh monetary easing. A spike in Chinese inflation boosted appetite for the metal.
Spot gold was up about 1 percent at $1,643.56 an ounce.
U.S. payroll growth slows: http://link.reuters.com/wej57s
Graphic on US unemployment: http://link.reuters.com/zej57s
Iran sanctions graphic: http://link.reuters.com/qeh85s
China CPI and PPI data: http://link.reuters.com/tek57s
(Additional reporting by Chikako Mogi and Mike Peacock in London; Editing by James Dalgleish)