European markets fall amid new fears about the Eurozone
Major European stock markets closed today’s session with falls due to renewed investor concerns about eurozone recovery before a meeting of European finance ministers in Copenhagen.
These fears outweighed the decline in applications for unemployment benefits in the United States to its lowest in four years.
European Square stop was worse was that of Milan, whose FTSE Mib lost 3.30%, dragged down further by the weakness in bank shares. The Frankfurt Stock Exchange, meanwhile, lost 1.77%, in Paris 1.43% and 1.15% in London.
The Madrid parquet limited its losses by closing with a drop of only 0.87% in one day general strike in Spain against the labor reform and austerity policies of the Government of Mariano Rajoy.
Spain, whose financial health concern in the Eurozone, due on Friday its budget for 2012, which the Government seeks to reduce the deficit to 5.3% of gross domestic product (GDP), from 8.5% in 2011.
These budgets will likely be examined very closely in Copenhagen, where European finance ministers meet on Friday and Saturday to reinforce the permanent fire ammunition against the debt crisis in the region, known as the European Financial Stability Mechanism (MEDE ) will enter into force in July.
This is one of the conditions imposed by the International Monetary Fund (IMF) to give more money to the Europeans.
“Fears that Spain and Italy will see by (…) led to seek outside help to redress public finances imposed temporarily,” said Franklin in Paris Pichard, director of Barclays Bourse.
The Organization for Economic Cooperation and Development (OECD) also warned in its forecast published Thursday that the recovery in the euro area remains “fragile”, but notes that begin to take shape disparities between countries.
European shares also benefited from the numbers of grant applications in the U.S., according to plan, or confirmation of GDP in that country in the third quarter.
Therefore evolved Wall Street lower on third consecutive day. At around 17h GMT, the Dow Jones lost 0.60% and the Nasdaq 0.99%.
Prudence was also the trend in the currency market, where the euro fell slightly against the dollar. At around 17h30 GMT, the European currency was worth $ 1.3271 to $ 1.3316 against Wednesday at 21h GMT.
Category: Business News
