European stocks fade on euro debt jitters
Sunday, 28 November 2010
LONDON, Nov 27 (AFP): Nervous investors sold off European equities Friday in the face of fears that Ireland's debt and deficit difficulties will force Portugal and Spain to follow its lead and appeal for outside financial help.
Market sentiment was unsettled ahead of what could be an announcement on Sunday that Ireland would receive a rescue package worth around 85 billion euros (114 billion dollars) to help it stabilise its public finances and troubled banking sector.
Ireland asked for assistance from the European Union and the International Monetary Fund last week but the initiative has failed to calm financial markets.
Borrowing costs for fellow eurozone members Portugal and Spain, both of which are seen as financially vulnerable, have risen sharply as investors demand ever higher rates for agreeing to buy debt from the two governments.
That has revived speculation that Lisbon and Madrid will also have to appeal for a bailout, despite vigorous protests in both capitals that no such assistance is needed.
In such a climate, European stock exchanges lost ground Friday, with the London FTSE 100 index shedding 0.53 percent to close at 5,668.70 points.
In Paris the CAC 40 fell 0.85 percent to 3,728.65 points while in Frankfurt the DAX lost 0.45 percent and closed at 6,848.98 points.
Elsewhere Milan fell 0.54 percent, Amsterdam 0.74 percent, Lisbon 0.61 percent, Madrid 1.80 percent and the Swiss Market Index 0.29 percent.
"Once again the euro area appears to have arrived at a pivotal moment," said James Nixon of Societe Generale bank.
"Macro fundamentals appear to have gone out the window. In their place is the growing realisation that the single currency's fundamental flaws are now laid bare. Without internal fiscal transfers the euro area is going to really struggle."
US stocks markets fell on Friday, with a holiday-thinned rank of traders taking their cue from European bourses.
The blue-chip Dow Jones Industrial Average was down 0.75 percent at 11,103.05 points at mid-day, when the Nasdaq had lost 0.25 percent to reach 2,537.87 points.
Concerns about Chinese inflation, tensions on the Korean Peninsula, and Europe's debt woes weighed on US traders coming back from the Thanksgiving holiday for a shortened day's trade.
Asian stock markets were mixed in quiet trade overshadowed by tensions on the Korean peninsula and the eurozone's debt crisis.
Market sentiment was unsettled ahead of what could be an announcement on Sunday that Ireland would receive a rescue package worth around 85 billion euros (114 billion dollars) to help it stabilise its public finances and troubled banking sector.
Ireland asked for assistance from the European Union and the International Monetary Fund last week but the initiative has failed to calm financial markets.
Borrowing costs for fellow eurozone members Portugal and Spain, both of which are seen as financially vulnerable, have risen sharply as investors demand ever higher rates for agreeing to buy debt from the two governments.
That has revived speculation that Lisbon and Madrid will also have to appeal for a bailout, despite vigorous protests in both capitals that no such assistance is needed.
In such a climate, European stock exchanges lost ground Friday, with the London FTSE 100 index shedding 0.53 percent to close at 5,668.70 points.
In Paris the CAC 40 fell 0.85 percent to 3,728.65 points while in Frankfurt the DAX lost 0.45 percent and closed at 6,848.98 points.
Elsewhere Milan fell 0.54 percent, Amsterdam 0.74 percent, Lisbon 0.61 percent, Madrid 1.80 percent and the Swiss Market Index 0.29 percent.
"Once again the euro area appears to have arrived at a pivotal moment," said James Nixon of Societe Generale bank.
"Macro fundamentals appear to have gone out the window. In their place is the growing realisation that the single currency's fundamental flaws are now laid bare. Without internal fiscal transfers the euro area is going to really struggle."
US stocks markets fell on Friday, with a holiday-thinned rank of traders taking their cue from European bourses.
The blue-chip Dow Jones Industrial Average was down 0.75 percent at 11,103.05 points at mid-day, when the Nasdaq had lost 0.25 percent to reach 2,537.87 points.
Concerns about Chinese inflation, tensions on the Korean Peninsula, and Europe's debt woes weighed on US traders coming back from the Thanksgiving holiday for a shortened day's trade.
Asian stock markets were mixed in quiet trade overshadowed by tensions on the Korean peninsula and the eurozone's debt crisis.