Thursday, May 31, 2012

European stock markets sink deeper and deeper


ZURICH . Instead of improving, the debt crisis in Europe was even more severe . As a result , the major stock exchanges in Europe sank deeper and deeper.

Wednesday ( 30/5 ) , London 's FTSE 100 index closed down declining 1.7 % to 5297.28 . At the same time , Germany 's DAX index fell 1.8 % to 6280 , 80 , while the ASE index slides 3.2 % in Greece .

Indeed , falling European stock market is predictable . Because the debt crisis prevention and development budget in European countries is not encouraging.

In Greece , for example , the magazine conducted a poll which showed that Epikaira Syriza party opposing the European Union -style budget savings of 30% voter support in Greece . Meanwhile , the New Democracy party is a supporter of bailouts and austerity policies of the European Union only managed to capture 26.5 % .

These results illustrate that New Democracy , perhaps , be difficult to win re- election on 17 June. If this happens , the fate of Greek debt restructuring and budget can be messy . In fact , the tip , could the Greek should be completely out of the European Union .

Sentiment is blowing in Italy and Spain is equally bad . Italian government bond prices going down . In the auction on Wednesday ( 30/5 ) , the Italian government also can sell bonds only tenure of 5 years and 10 years worth of 5.73 billion euros . This figure is below the initial target of reaching 6.25 billion euros .

" The main threat to the Italian bond market currently comes from the external , " said Nicholas Spiro , Managing Director Spiro Sovereign Strategy in London , as quoted by Bloomberg .

Debt market conditions in Spain was no better . Yields on government bonds soaring tenor of 5 years to 6% for the first time since 30 November last year . It's a sign that investors against the quality perspepsi Spanish debt is getting worse.

Negative sentiment of Europe was also transmitted to Wall Street . In early trading , the Dow Jones Industrial Average ( DJIA ) on the New York Stock Exchange ( NYSE ) has dropped 1.13 % to 12.438.50. ( Kontan.co.id )

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