World stock markets have continuously suffering heavy losses last week in the first day of trading since rating agency Standard & Poor's downgraded the US late on Friday.
The main Wall Street index, the Dow, was down 2.5% due to weak US economy.The UK's FTSE was 2.9% dowm, and Germany's Dax had fall 4.3%. But yields on Spanish and Italian bonds fell sharply after intervention by the European Central Bank (ECB).
The ECB said it intended to buy up eurozone government bonds to address concerns that the eurozone debt crisis was spreading to those two countries.
The yield on Spanish 10-year bonds is announced - it indicate of the risk cocerned with lending Spain money down from more than 6% to about 5.2%. Yields on Italian bonds fell by a similar amount.
Tobias Blattner, a former economist at the European Central Bank, said the ECB's intervention had done little to help the crisis of confidence boosting up the share markets.
"This reflects the fundamentals that growth is in a very bad situation on both sides of the Atlantic and this is why the ECB's interventions will not alter anything.
"We can't get much positive momentum out of it, but for the bond markets it was a good sign."
Earlier, Asian stock shares had lose due to the US downgrade.
Japan's Nikkei and Hong Kong's Hang Seng indexes fall 2.2%, while South Korea's Kospi fell 3.8%.
These added to the significant falls seen last week when trillions of dollars were wiped from the value of global markets, with the Dax losing about 13% of its value, the FTSE 100 falling almost 10% and the Dow ending the week 5.8% lower.
No comments:
Post a Comment