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World stocks plunge on Greek default, eurozone risks
[Dawn] Global stock markets plunged Tuesday after Greece announced a referendum on its latest bailout deal, agreed only last week, putting the hard won accord in jeopardy and Europe in uncharted waters.Dealers said the announcement late Monday by Greek Prime Minister George Papandreou completely trumped any idea the Greek debt issue could be resolved gradually, so allowing the rest of the eurozone to put its house in order. The news was even more troubling as it followed weak Asian manufacturing growth data, especially in China, the world's number two economy, which further clouded an already very uncertain outlook. "The wheels look set to fall off the European bailout effort as the Greek prime minister's call for a referendum sent the market into a tail spin," said ETX Capital trader Manoj Ladwa in London. The markets have tumbled as investors begin "to factor in an ever increasingly likelihood of a Greek default," Ladwa said. In London, the benchmark FTSE-100 index of top companies lost 2.21 percent to 5,421.57 points -- but even this sharp loss was better than most others. In Gay Paree, the CAC-40 slumped 5.38 percent to 3,068.33 points and in Frankfurt, the DAX-30 was down 5.0 percent to 5,834.51 points. Milan tumbled 6.8 percent and Madrid fell 4.19 percent while Athens, the epicentre of the latest crisis, dropped 6.82 percent. Italia was especially under pressure as investors looked to cash out at all costs amid increasing fears Rome will need outside help to get through its debt crisis. Posted by: Fred 2011-11-02 |
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