Growing fears over the health of Europe’s weakest economies rocked global markets on Thursday, sparking sharp falls in shares on the continent and a worldwide flight to the safety of the US dollar and Treasuries.
The impact of declining sentiment in Europe was compounded in the US by poor employment data, with the number of American workers claiming jobless benefits rising unexpectedly last week.
In the space of weeks, investor fears that had initially been confined to Greece have spread to Portugal and Spain, and spilled over into equity markets in the US and the UK.
Portuguese, Spanish and Greek markets were hit hardest as investor fears over their mounting public debt undermined confidence in their economies and the ability of their governments to fund burgeoning budget shortfalls.
The dollar surged to its highest level against the euro in more than seven months, while US Treasury prices rose. The Vix index, which tracks volatility on the S&P 500 and is known as Wall Street’s fear gauge, jumped 17 per cent to 25.22.
Not good news apparently. Worries over Greece, Spain and Portugal caused our market to tumble today? Along with the not so good job numbers domestically.
Hello! News Flash!
We (The USA) are doing the exact same things that Greece and Spain and the rest have done to put them in their own fix. Problem is? When America tanks? There won't just be fluctuations in the global markets.
The whole damn system will collapse 'globally.'
No comments:
Post a Comment