Eurozone debt jitters spread to Wall Street
JUSTIÇA DE SÃO PAULO DETERMINA QUE O MUNICIPIO AUTORIZE A EXPEDIÇÃO DE NOTAS FISCAIS ELETRÔNICAS.
9 de fevereiro de 2024
Por que Rússia deve crescer mais do que todos os países desenvolvidos, apesar de guerra e sanções, segundo o FMI
18 de abril de 2024The Dow Jones index opened down more than 1pc to 12,377.71, with the broader
S&P 500 sliding 1.1pc and the technology-rich Nasdaq 1.6pc.
Investors have been unnerved by downgrades of Greek and Italian goverment debt
and the heavy defeat of Spain’s ruling Socialists in local and regional
elections as punishment for its handling of the economy.
In Europe the FTSE 100 index of leading UK shares dropped 97 points – or 1.6pc
– to 5852.17 as trading started in the US. Bourses in Germany, France,
Spain, Italy and Greece fell heavily, while yields on Greek government bonds
rose to the fresh highs. Earlier, stocks in Asia fell heavily with the
Nikkei sliding 1.5pc and the Hang Seng 2.1pc.
Fitch Ratings’ downgrade of Greece’s credit rating on Friday and Standard &
Poor’s cut its outlook for Italy to “negative” from “stable”
on Saturday. S&P’s main concern was that any possible restructuring of
Greek debt could have contagion effects for other peripheral countries in
the eurozone.
“Spain is back in focus in relation to debt and that is really a concern
for the markets — it’s weighing on the euro, on risk sentiment in general
and on commodities,” Danske Bank analyst Christin Tuxen said.
The euro fell to a two-month low against the dollar and a record low against
the Swiss franc. Spain’s attempt to strengthen its finances through harsh
austerity measure to appease financial markets has angered voters who are
paying the price. Spanish unemployment is 21.3pc, the highest in the
eurozone.
Sentiment over the eurozone has been hit by recent figures from China showing
growth slowing and a lacklustre recovery in the US. Fears of slowing demand
has hit commodity prices with oil, copper, silver and gold prices sliding
and dragged down mining stocks.
“We are slightly cautious on the market over the next three to six months
over a lack of clarity over the bigger macro issues such as the European
sovereign debt,” said Neil Tong, head of UK equities at Alliance Trust.
Reacting to the downgrade, Greece ruled out a debt restructuring ahead of a
Cabinet meeting called for today to reach agreement on tougher austerity
measures with bigger cuts in public sector wages, along with tax increases
and the privatisation of state assets to meet the terms of its $110bn
(£68bn) bail-out.
Prime Minister George Papandreou, supported by two leading members of the
European Central Bank (ECB), made it clear there was no prospect of support
for a debt restructuring to ease the pain.
The harsher measures risks further civil unrest and have failed to persuade
financial markets the Greece can reduce its debt mountain. Talk of a default
or a “soft restructuring” have unnerved markets while the ECB
fears further damage to the euro and a new banking crisis in Athens if there
is any tinkering with the package.
Mr Papandreou says he is ready to take any steps necessary to safeguard the
bail-out funding. He said: “Greece must convince everyone of its
determination.”
