Arab Today, arab today world markets slide on eurozone contagion fears
Last Updated : GMT 15:07:28
Arab Today, arab today
Arab Today, arab today

World markets slide on eurozone contagion fears

Arab Today, arab today

Arab Today, arab today World markets slide on eurozone contagion fears

London - UPI

European shares fell sharply on Tuesday and the dollar firmed against the euro amid worrying signs of contagion in the eurozone. Concern was focused on Italy and Spain with spreads between yields on their sovereign bonds and those of Germany hitting record levels, dampening hopes that the eurozone debt crisis may soon be over. In the US, a downbeat consumer spending report overshadowed the expected passage of the debt-ceiling deal in Congress. London\'s benchmark FTSE 100 index of top shares was down 0.97 percent at 5,718.39 points. In Frankfurt, the DAX fell 2.26 percent to 6,796.75 points and in Paris the CAC 40 dropped 1.82 percent to 3,522.79 points. On the bond markets, investors sold down Spanish and Italian bonds on concerns that their debt problems would only get worse as economic growth slows. The premium demanded for buying Spanish 10-year bonds over safe-bet German bonds surged to more than four percentage points -- 404 basis points -- the highest since the introduction of the euro in 1999. Meanwhile the yield on German government bonds fell below the country\'s inflation rate for the first time since reunification in 1990 -- dropping to 2.395 percent compared to the 2.4 percent July inflation rate, as investors sought a safe haven. German bonds \"certainly haven\'t been interesting for investors for a long while in terms of return, but they remain one of the only safe bets in view of the crisis with which we are confronted,\" said Natixis bond strategist Rene Defossez. Other European markets also dropped sharply: Milan fell by 2.53 percent, Madrid by 2.18 percent and in Zurich, the leading index fell by 4.09 percent after being closed on Monday for a national holiday. With troubling eurozone news and a debt deal all but certain in the US, the European single currency sank as low as $1.4158, which was the lowest level since July 21. It later stood at $1.4192 in London deals, down from $1.4248 late in New York on Monday. \"The financial turbulences around the US and the eurozone debt crises have started to cross the species barrier from financial markets to the real economy,\" Holger Schmieding, economist at Berenberg Bank in Germany said. \"If Europe gets its act together soon, the overall damage to confidence from the US and European debt crises could remain modest... But if the ECB waits much longer before it steps in to contain the eurozone debt crisis, the damage to confidence and growth could become more significant.\" Chris Weston, an analyst at IG Markets trading group said, news of a debt deal in the US was quickly overshadowed: \"So much for the relief rally that was supposed to occur on the back of the proposed debt deal.\" Under the agreement reaced late Sunday by President Barack Obama and top lawmakers, the US government\'s debt limit will be increased by about $2.4 trillion in two steps while Washington also makes deep spending cuts. The US Treasury has said that the $14.29-trillion debt ceiling must be raised by Tuesday or else it could be forced to default on its debts, with potentially calamitous effects. The debt deal, approved by the House of Representatives late on Monday, was expected to pass in the Senate on Tuesday. But adding to traders\' woes was a raft of weak figures from the United States and other major economies. A debt deal \"means markets have become more able to focus on the more mundane matters of economic data, not only in Europe and the United States, but also in Asia as well,\" said CMC Markets analyst Michael Hewson. The US manufacturing sector was flat in July, according to a closely watched index released Monday, in another sign of how the economy has stalled. The Institute of Supply Management\'s indexed survey of purchasing managers was at 50.9, down from 55.3 the previous month. A reading above 50 indicates expansion. Manufacturing in China, an economy on which many other nations rely to drive growth, also slowed abruptly -- with one survey suggesting contraction -- while there was similar bad news in Australia, Taiwan and India. In midday trading in the United States, the Dow Jones Industrial Average was down 0.87 percent to 12,026.99. The broader S&P 500 dropped 1.07 percent to 1273.19 while the tech-heavy Nasdaq Composite shed 0.86 percent to stand at 2,720.96. Asian markets also stumbled. Hong Kong closed down 1.07 percent, Tokyo sank 1.21 percent, Seoul slumped 2.35 percent and Shanghai shed 0.91 percent.

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 world markets slide on eurozone contagion fears Arab Today, arab today world markets slide on eurozone contagion fears

 



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 world markets slide on eurozone contagion fears Arab Today, arab today world markets slide on eurozone contagion fears

 



Arab Today, arab today
Arab Today, arab today Arab tradition glitters in Colombia

GMT 12:59 2017 Thursday ,19 October

Arab tradition glitters in Colombia
Arab Today, arab today Second US judge orders freeze

GMT 08:04 2017 Thursday ,19 October

Second US judge orders freeze
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 Writing's on the wall for Trump, Zuckerberg

GMT 09:05 2017 Thursday ,19 October

Writing's on the wall for Trump, Zuckerberg
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
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 Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Hussein Fahmy happy for honoring in festival

GMT 07:47 2017 Tuesday ,17 October

Hussein Fahmy happy for honoring in festival
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 18:29 2017 Sunday ,03 September

Designer produced new set of ornaments

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 06:52 2017 Monday ,16 October

Airbus CEO says won't cling to job

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 19:29 2017 Tuesday ,29 August

Yomna: decoration leaved positive effects
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