Global Markets Lower amid Euro’s Debt and Korea Tensions

in Business-news

Global markets slumped Friday amid worries about the possibility of additional bailouts for heavily-indebted countries in Europe and tensions on the Korean peninsula.

 

In the European stock markets, London\'s FTSE 100 lost 0.8 percent to 5,653.47. France\'s CAC-40 shed 0.7 percent to 3,735.23. Germany\'s DAX dropped 0.5 percent to 6,844.80.

 

In the Asian markets, Japan\'s Nikkei 225 stock average was down 0.4 percent to close at 10,039.56. Hong Kong\'s Hang Seng dropped 0.8 percent to 22,877.25. Australia\'s S&P/ASX 200 finished at 4,598.30. Other major indexes in Malaysia, Indonesia, Taiwan, Singapore, and New Zealand also posted losses.

 

South Korea\'s Kospi closed down 1.3 percent to 1,901.80.

 

Tensions on the Korean peninsula, which started on Tuesday when the North unleashed a brief hail of artillery against the small South Korean island of Yeonpyeongs, have affected on Asian markets. The markets have remained jittery for several recent days.

 

According to Lee Kok Joo, head of research at Phillip Securities in Singapore, the markets were cautious about what might happen.

 

Debt problems in Europe are escalating. The region’s crisis has sent its common currency lower against the dollar. Greece asked for a massive loan in May, and the same happened to Ireland which requests for aid from the European Union and International Monetary Fund.

 

People had worried about European officials’ inability to prevent the region’s debt crisis from spreading to other heavily-indebted countries. Portugal and Spain were considered to be the next nations most likely to fall before Ireland and Greece. Especially, Spain makes up about 10 percent of the euro-zone economy while each country of the rest accounts for less than 2%.

 

The dollar rose against the yen and the euro. The dollar appreciated against rivals in Asian trading Friday, confirming its position as strong currency. The Korean won shed 1.9% against the U.S. dollar to finish at 1,159.5. The currency lost 2.2% for the week.

 

Oil prices hovered below $84 a barrel. Benchmark oil for January delivery fell to $83.76 a barrel on the New York Mercantile Exchange.

 

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Emma Murphy has 398 articles online and 4 fans

Economics is the study of our lives,our jobs, our homes, our families and the little decisions we face every day. Thus, I am keen on reading and studying economic issues.

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Global Markets Lower amid Euro’s Debt and Korea Tensions

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This article was published on 2010/11/27