Article updated: 1/31/2013 7:44 AM

World stocks fall on unexpected dip in U.S. economy

Buy this photo Buy this photo
Gallery Image

A man walks by the electronic stock board of a securities firm in Tokyo Wednesday.

Associated Press

About this Article

An unexpected contraction in the U.S. economy at the end of 2012 sent world stock markets into retreat Thursday. The U.S. economy shrank in the fourth quarter for the first time since mid-2009, hurt by big cuts in defense spending, falling exports and sluggish growth in company inventories, the government reported Wednesday. That put the brakes on a Wall Street rally that had pushed the Dow to near-record highs.