NEW YORK - US STOCKS slumped at the opening on Wednesday following news of a drop in retail sales, triggering fresh concerns about the prospects for economic recovery.

WASHINGTON - SALES at US retailers fell for a second straight month in April as cash-strapped consumers held back on some purchases, according to a government report on Wednesday that dealt a blow to hopes the economy was beginning to improve.

The Commerce Department said total retail sales slipped 0.4 per cent after falling by 1.3 per cent in March. Excluding motor vehicles and parts, sales dipped 0.5 per cent in April, compared to a 1.2 per cent decline the prior month.

BERLIN - THE German government agreed a 'bad bank' scheme on Wednesday to clean up toxic assets from bank balance sheets, a key plank of Berlin's bid to turn around the economy, a spokesman said.