Global Markets Veer Lower on Turbulence in Europe An abrupt change in the political and economic winds in Europe roiled stock markets there and helped depress shares on Wall Street on Monday. Major indexes in Europe were down about 3 percent for the day on the collision of negative indicators, while American markets were more than 1 percent lower in afternoon trading. On the political side, the leftist presidential candidate in France scored a narrow victory over the incumbent in the first round of voting on Sunday, and the government in the Netherlands resigned on Monday after failing to agree on budget cuts. In the economy, official data from Spain confirmed that the country was in a recession; a survey of corporate purchasing managers in countries that use the euro fell to a five-month low, indicating that the private sector is contracting; and a German manufacturing index unexpectedly dropped in April. As a result, the DAX index in Frankfurt sank 3.4 percent by the end of trading, and the CAC 40 in France lost 2.8 percent, pushing it fractionally lower for the year so far. The IBEX 35 in Spain also dropped 2.8 percent, for a 19 percent loss in 2012. The euro fell 0.6 percent against the dollar to $1.3114. In afternoon trading in New York, the Dow Jones industrial average lost 1 percent - about 135 points - as did the more broadly based Standard & Poor's 500-stock index. The Nasdaq composite index, heavy in technology company shares, fell 1.2 percent. The euro zone purchasing managers index published by Markit, meant to show near-term growth in the manufacturing and services sectors, fell in April to 47.4 points, compared with analysts" forecasts for a slight uptick to 49.3 from last month's 49.1. The reading "supports the idea that euro zone economic activity is likely to experience recessionary conditions throughout the course of this year," Mark Miller, European economist at Capital Economics in London, wrote in a research note, according to The Associated Press. The fresh political challenges highlighted the difficulty of using spending cuts to combat a crisis over debt in some European countries, analysts said. The Netherlands were headed for new elections after Prime Minister Mark Rutte failed to secure backing from a right-wing party for budget cuts. The prime minister and the Dutch cabinet resigned amid government efforts to bring the country's deficit under the European Union's limit of 3 percent of gross domestic product. In France, François Hollande, the Socialist candidate for president and a critic of austerity as a solution to the debt crisis, led the first round of president elections over President Nicolas Sarkozy. The final election round is May 6. Asian stocks also declined. The Hang Seng Index in Hong Kong fell 1.8 percent and the Shanghai composite index lost 0.8 percent. HSBC's China purchasing managers index for the manufacturing sector rose to 49.1 in April from 48.3 in March, but a reading below 50 indicates a drop in production.