Global shares continue to fall over euro debt fears

| May 21, 2010 | 0 Comments
Global shares continue to fall over euro debt fears

Ongoing fears that the euro zone debt crisis could spread throughout the world sent Asian markets falling today with Japan’s Nikkei index down 246 points to 9,784.54.

Over the week, the index has lost over 6.5% - its largest weekly drop since January 2009.

On Wall Street yesterday, the Dow Jones industrial average slumped 376.36 points (3.6%) to close at 10,068.01.

Meanwhile, the Nasdaq Composite index fell 94.36 to 2,204.01, while the Standard & Poor’s 500 futures sank 43.46 points to 1,071.59.

This morning, London’s FTSE fell 18.08 points to 5,055.26 after falling 1.7% on Thursday.

In order to prevent another crisis like the one in Greece, a European Union taskforce of finance ministers are to meet in Brussels later today to discuss economic reforms.

However, fears are mounting that the euro zone’s handling of its sovereign debt crisis could put the global economic recovery at risk.

There are also fears of the lack of agreement between EU leaders after Germany’s sole decision to ban risky bets on bonds, stocks and credit protection, until March next year.

The ban, imposed by the German Government, will apply to the country’s 10 most important financial institutions, and is designed to stop the short-selling of euro Government bonds.

Tags: , Brussels, , , , , , short selling,

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