Morning markets: US reports light trading volumes as investors turn defensive

America's largest stock markets reported very light trading volumes on Monday as a flurry of M&A activity did little to reassure investors of the strength of the global recovery.

The Dow Jones closed 0.38% down at 10,174, while the S&P 500 was down 0.4% at 1,067, and the Nasdaq saw a 0.92% fall to 2,159.

Several high profile deals involving bids from Hewlett Packard and Dell, and BHP Billiton, were not enough to support the markets.

Asian stocks fell on investor uncertainty, with the Nikkei in particular suffering as it closed 1.33% down at 8,995, a 15-month low. The Hang Seng fell 0.91%, but the Shanghai index rose 0.41%.

The moves were most likely a result of the strength of the yen, which hit a nine-year high against the euro today. Fears from foreign investors that policymakers' failure to curb the currency's appreciation could hinder recovery led to a widespread sell-off.

In the UK, the FTSE 100 opened 1.06% lower at 5,179, with housebuilder Persimmon the strongest performer. The stock was up 1.73% as the firm's first-half profits increased more than tenfold after a period of "strong sales" in the spring.

Persimmon reported a pre-tax profit of £101.4m in the first six months, up from a £9.8m profit a year ago.

It also said it would recommence paying a dividend to shareholders at the end of the year, after suspending the payment in 2009. Among the laggards this morning were resources companies Vedanta, Kazakhmys, and Eurasian Natural Resources.