Arab Today, arab today european stocks drop after us axes spending
Last Updated : GMT 09:10:35
Arab Today, arab today
Arab Today, arab today

European stocks drop after US axes spending

Arab Today, arab today

Arab Today, arab today European stocks drop after US axes spending

London - AFP

European stock markets sank on Monday, mirroring Asian equities, after US lawmakers failed to prevent $85 billion in spending cuts that were implemented late last week in the world\'s biggest economy. The British stock market was also pulled lower by poor survey data that signalled fresh recession on the horizon for Britain -- and as global bank HSBC posted sliding annual profits. Shortly after midday, London\'s FTSE 100 index of leading companies was showing a fall of 0.58 percent to 6,342.06 points. Elsewhere, Frankfurt\'s DAX 30 shed 0.64 percent to 7,658.59 points, and in Paris the CAC 40 lost 0.26 percent to 3,690.22. Milan\'s FTSE Mib index lost 1.05 percent to 15,512.87 points as the eurozone nation continued to face political uncertainty in the wake of last week\'s inconclusive national elections. In foreign exchange deals, the euro fell to $1.2991 from $1.3018 late in New York on Friday. Gold prices declined to $1,577.96 an ounce on the London Bullion Market from $1,582.25. Asian stocks mostly sank on Monday, as markets fretted over the steep cutbacks in federal spending. However, Wall Street inched closer to a five-year high on Friday as investors had shrugged off the US budget mess. \"European stock indices are trading lower... as a combination of the sequester in the United States and poor data in Europe hits investor sentiment,\" said analyst Craig Erlam at trading group Alpari. US politicians traded barbs over the weekend after the \"sequester\" of deep federal spending cuts that kicked in on Friday, with most economists warning it will lead to rising unemployment and dent economic growth. There had been hope that Democrats and Republicans would be able to reach a compromise to cut the budget that would not be as painful, but last-minute talks failed. \"Once again it appears that squabbling between the two US political powers are harming the ability of the US economy to continue its recovery,\" said analyst Alastair McCaig at trading group IG. \"With the budget cuts that (US President) Barack Obama is being forced to implement, an initial $85 billion will be taken out of public spending. \"If he is not careful he may find himself with the legacy of being a president who was unable to force through difficult economic policies.\" Meanwhile, British stocks were hit also by a new survey which stoked concern that the economy could be heading for its third recession since the 2008 global financial crisis. Britain\'s construction sector contracted at its fastest pace in over three years in February, as new orders declined for a ninth straight month, a Markit survey showed. Sharp falls in commercial building work and in civil engineering activity pushed the purchasing managers\' index (PMI) to 46.8, from 48.7 in January. A reading of 50 marks the line between signals of growth and contraction in the economy. The index has been underneath this level for four months in a row. \"A contraction figure was expected, however it was forecast to contract at a slower rate than the month before, instead it\'s contracted much faster,\" added Erlam. \"This just adds to concerns that the UK is going to struggle to avoid a triple-dip recession in the first quarter, let alone grow in 2013.\" In company news, global bank HSBC said net profits sank 16.5 percent to $14.03 billion (10.78 billion euros) last year, hit by US money-laundering fines, mis-selling scandals, rising taxation and a huge accounting charge. HSBC\'s performance was partly hit by a $1.9-billion fine to settle US allegations of money laundering that were said to have helped Mexican drug cartels, terrorists and Iran. The announcement pushed the group\'s share price 2.65-percent lower to stand at 708.8 pence. Other British banks also fell. Lloyds Banking Group dropped 3.33 percent to 51.47 pence and Royal Bank of Scotland slid 1.66 percent to 308.8 pence. Back in Asia, Chinese shares suffered the biggest sell-off, with Shanghai slumping 3.65 percent as property developers were hit by measures to cool the housing market. Elsewhere, Hong Kong lost 1.50 percent, Sydney slipped 1.49 percent and Seoul was off 0.66 percent. However, Tokyo enjoyed modest gains, adding 0.40 percent as the man tapped to become Japan\'s top central banker vowed to tackle deflation.

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 european stocks drop after us axes spending Arab Today, arab today european stocks drop after us axes spending

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 06:44 2017 Sunday ,26 February

Doubts grow over American stock market’s surge

GMT 06:26 2017 Sunday ,26 February

Copper recovers lost ground

GMT 15:53 2017 Saturday ,25 February

Bahrain Bourse daily trading report

GMT 14:28 2017 Saturday ,25 February

Gold hits 3.5-month high

GMT 03:11 2017 Saturday ,25 February

50 Tunisian exhibitors at Gulfood 2017, Dubai

GMT 02:19 2017 Saturday ,25 February

SIEL expo, March 1-4

GMT 12:30 2017 Friday ,24 February

Norway's Telenor to leave Indian telecom market
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
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