Arab Today, arab today banks lead us european stock plunge
Last Updated : GMT 04:34:53
Arab Today, arab today
Arab Today, arab today

Banks lead US European stock plunge

Arab Today, arab today

Arab Today, arab today Banks lead US European stock plunge

London - AFP

Stocks plunged Europe and on Wall Street on Wednesday, with bank shares leading the selloff amid new concern over Greece, and talk of danger for France's credit rating which was immediately denied. The slump of up to six percent in Europe and more than four percent on Wall Street, coupled with a record rise of gold, came only a day after markets soared on signals by the US Federal Reserve that it would hold ultra-low interest rates for another two years. But the relief rally quickly lost steam and stocks resumed a plunge that has in recent days seen many European markets lose over a tenth of their value in a selloff triggered by concerns over debt and an economic slowdown. Sovereign debt worries were amplified Wednesday by a Fitch downgrade of Cyprus and comment that the eurozone nation would need an EU bailout. This came only days after the historic downgrade of the US credit rating by Standard & Poor's. In foreign exchange deals, the dollar steadied against the euro, after having earlier slid on the Federal Reserve news. The European single currency dipped to $1.4191 from $1.4374 in New York late Tuesday. The dollar slid against the Japanese unit, buying 76.45 yen compared to 76.94 on Tuesday. At closing, Frankfurt's DAX dived 5.13 percent to 5,613.42 points and Paris' CAC-40 plunged 5.45 percent to 3,002.99 points. London's benchmark FTSE 100 index was down 3.05 percent to 5,007.16 points, also hit by news that the Bank of England has downgraded its 2011 British economic growth forecast. In the United States, in midday trading, the Dow Jones Industrial Average fell 3.22 percent after losing more than 4.0 percent earlier, the broader S&P 500 index was down 3.2 percent and the Nasdaq dropped 2.59 percent. In other European markets, Madrid tumbled 5.49 percent, Milan fell 6.65 percent, Amsterdam slid 3.41 percent, and Zurich dropped 4.12 percent. Shortly before Wall Street opened, banking stocks turned the European rally into a rout. "It was a crazy session. The banking sector hasn't been hit this violently since 2008," Renaud Murail, asset manager at Barclays Bourse in Paris said. Apparently sentiment was pushed by a mixture of factors: renewed concerns about Greece after the finance minister made comments on the eurozone rescue bond swap, concern about France's credit rating and rumours France might increase taxes on banks. The French finance ministry categorically denied the rumour of a downgrade and Fitch rating agency said the outlook for France's "AAA" was stable. The French president's office said after a government meeting that within two weeks France would announce extra action to ensure that it meets tough targets on cutting its budget deficit. However, uncertainty centered on whether the new European Union rescue fund will be increased, and many analysts say that if it were, the burden would cost France its top rating. In Madrid, an analyst at IG markets, Soledad Pellon Bannatyne, said that Spanish bank shares had fallen in line with French bank shares which had dropped because of "their exposure to Greek debt". She said: "French banks are being attacked so strongly that this has spread via falls throughout the European banking sector." In Paris, shares in Societe Generale, were lost 13.1 percent, having dropped by over 20 percent at one point over concerns over its exposure to Greek debt. In London afternoon trading the price of shares in Standard Chartered bank was showing a loss of 6.34 percent, Barclays was down 6.30 percent, Royal Bank of Scotland was down 5.5 percent and HSBC was down by 4.11 percent. In Madrid, stocks in Santander bank were down 7.13 percent and BBVA was down by 6.35 percent Italy's second-biggest lender, Intesa Sanpaolo, fell 13.72 percent. On Wall Street, shares in Bank of America were down 7.4 percent in afternoon trading. The plunges came a day after the head of the European Central Bank Jean-Claude Trichet made public in the bluntest terms that he had told Italy and Spain what they had to do in return for ECB support for the eurozone system. The US Federal Reserve then took action mainly at supporting the US economy and warding off the threat of a double dip recession by giving exceptionally revealing information that it expects it will keep interest rates at very low levels for about two years. Actions by the ECB, principally the resumption of purchases of bonds issued by eurozone countries in distress, paid dividends initially, when European markets firmed and Italy was able to sell debt at sharply reduced rates. The positive mood on Tuesday had spilled over into Asia earlier on Wednesday. Tokyo rose 1.05 percent, Sydney added 2.64 percent and Seoul gained 0.27 percent. Hong Kong meanwhile jumped 2.34 percent, bouncing back after a disastrous showing on Tuesday when it lost 5.66 percent. Shanghai gained 0.91 percent. Gold prices hit a new record high near $1,800 per ounce on Wednesday, as global economy concerns and tumbling stock markets boosted demand for the safe-haven metal, traders said. Gold rallied as high as $1,797 an ounce in late afternoon trading on the London Bullion Market, extended its recent record-breaking run. It closed at $1,772 compared to $1,736 on Tuesday.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today banks lead us european stock plunge Arab Today, arab today banks lead us european stock plunge

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today banks lead us european stock plunge Arab Today, arab today banks lead us european stock plunge

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Taxi! Transport gets an overhaul

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Turkey warns of 'security' steps

GMT 12:17 2017 Sunday ,24 September

Turkey warns of 'security' steps
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:11 2017 Saturday ,23 September

Doctor provides advices to families

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday