Shares in freefall over Greek contagion fears

| May 7, 2010
Shares in freefall over Greek contagion fears

Global shares have continued to decline due to ongoing fears of contagion from Greece’s debt crisis.

Asian shares fell sharply yesterday after fears grew that the crisis would spread to other European countries.

Ratings agency Moody’s said European banking systems faced “very real, common threats” from the fallout from Greece.

However, it seems that fears continue to grow after the Dow Jones yesterday was down by more than 9% at one point – its worst fall since 1987.

In Asia meanwhile, Japan’s Nikkei index lost 3.1%, while Australia’s main index fell 2%. South Korea’s Kospi fell by 2.2%, while China’s Shanghai index fell 1.9%. Shares in Hong Kong, Taiwan and Singapore also saw falls.

Not only did shares fall, the dollar lost 6% against the yen, while oil prices fell to levels not seen since earlier this year to $77.11 a barrel.

In the UK, the pound lost ground against the dollar and the euro over fears of a hung parliament as results started to emerge from the general election.

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  1. Abhishek says:

    Greece was given an aid package by EU-IMF to contain any contagion effects but looks like it has failed miserably.No one knows how this one will play out whether the Euro will be dissolved or the countries in question will default/haircut or something new which no one has thought of yet . The huge amount of uncertainty is hammering the markets and making the VIX vault to incredibly high levels though nothing near the Sept 2008 levels. VIX is up almost 100% in 2 days , while Oil is down almost 15% in the last week. Gold is the only commodity which is going up whilst the others wilt in the face of the Greek debt onslaught. If this is not a contagion it is very close to one. G7 ministers are supposed to talk today but don’t know what they can do to solve a problem over phones