World Euro market meltdown resumes despite Greek deal

[The Helper]

ATHENS/LONDON (Reuters) - A renewed selling frenzy gripped euro zone financial markets on Tuesday as concern mounted that a record EU/IMF bailout for Greece would not stop a debt crisis spreading in the single currency area.

Spanish Prime Minister Jose Luis Rodriguez Zapatero dismissed as "complete madness" a market rumor that his country would soon ask for 280 billion euros in aid from the euro area.

The euro sank to a one-year low of beneath $1.31 and the risk premium on Greek, Portuguese and Spanish bonds soared amid jitters about a possible Greek debt restructuring and worries over the fiscal health of other southern European countries.

In Athens, striking public workers challenged Greece's 110 billion euro ($146.5 billion) bailout-for-austerity deal, starting a 48-hour national strike that shut down ministries, tax offices, schools, hospitals and public services.

 

[NightShade]

man that sucks.

 

[The Helper]

Update - Stocks slide as new doubts about Greek aid emerge

EW YORK (AP) -- Stocks plunged around the world Tuesday as fears spread that Europe's attempt to contain Greece's debt crisis would fail. The euro fell to its lowest point against the dollar in a year.

The Dow Jones industrial average fell 225 points, its biggest drop in three months. The slide erased a 143-point gain from Monday. The Dow and broader indexes each fell more than 2 percent. Treasury prices rose on increased demand for safe investments.

Stocks have seesawed in the past week as Europe's efforts to agree on a bailout package for Greece proceeded in fits and starts. An agreement finally came together over the weekend, but its ballooning size of $144 billion has investors worried that Europe would have an even tougher time assembling an aid package if a larger country such as Spain or Portugal were to get in trouble. Traders are concerned that weakening economies in Europe could jeopardize the recovery in this country.

The market's plunge wasn't a surprise to some analysts who have warned for weeks that stocks were due for a retreat. After Monday's rally, the Standard & Poor's 500 index was up almost 14 percent from its 2010 low of 1,056.74, reached Feb. 8. Investors have spent the past three months largely shrugging off the problems in Europe and focusing instead on the continuing signs of improvement in the U.S. economy.

More.

 

[Whitesock]

Well at least this will bring down the euro for when I travel to england this summer.

 

[CatCat]

Well at least this will bring down the euro for when I travel to england this summer.

That's a joke, right? Right?

 

[Wiseman_2]

Well at least this will bring down the euro for when I travel to england this summer.

I'm sorry, I don't normally do this sort of thing, but...

Oh, and anyone in the UK thinking of voting for the Lib Dems on Thursday, just bear in mind that they want to replace the Pound with the Euro

 

[Whitesock]

That's a joke, right? Right?

No it's not...

You guys take things too seriously.

 

[seph ir oth]

In other news, worldwide demand for gyros drops dramatically.

 

[The Helper]

Stocks Slide as Market Rout Triggers Trading-Systems Concern

May 7 (Bloomberg) -- Stocks slid for a fourth day, erasing 2010 gains for U.S. benchmark gauges, and the bonds of debt- laden nations tumbled after Europe’s debt crisis spurred an equity rout yesterday that undermined confidence in trading systems. Oil sank, capping the biggest weekly drop since 2008.

The Standard & Poor’s 500 Index fell as much as 3 percent before paring losses to 1.5 percent at the 4 p.m. New York close, leaving it down 0.4 percent in 2010. The MSCI World Index sank 2.3 percent. The Stoxx Europe 600 Index fell 3.9 percent to the lowest level since November. Greece led a drop in deficit- stricken European nations’ bonds, with the yield premium demanded to own the 10-year securities instead of benchmark German bunds rising to a record 9.65 percentage points.

Regulators are reviewing a plunge that briefly wiped out more than $1 trillion in U.S. equity value yesterday as the Dow Jones Industrial Average slid almost 1,000 points before paring losses. Concern over the integrity of the trading mechanisms that may have exacerbated the drop overshadowed the biggest growth in U.S. jobs in four years. Credit-default swaps on European banks surged to an all-time high and the benchmark gauge of U.S. stock volatility capped a record weekly gain.

“The market is manic,” said Philip Orlando, the New York- based chief equity market strategist at Federated Investors, which manages about $400 billion. “The ECB needs to step in here and do something. If that really becomes true, we start to rally and focus on the terrific jobs report we had this morning. They could have solved this six months ago. There’s still a lot of concern about contagion. Investors are scared to death.”

More here.

 

[SineCosine]

Makes you wanna' cry for the people there, huh?

 

[Ninja_sheep]

This whole stock collapse with Greek indicates something to me...
debt =!= good
Wonder how long it takes for other countries to go into financial fail.
I don't think Portugal, Spain or Italy are too far away from it.
Maybe same for US... in about 20 years or so.

(not OT, just wanted to say it somewhere)

 

[tom_mai78101]

Will this creates another global stock market crash?

 

[Monovertex]

Brace yourself lads, we're going down!

 

[Wiseman_2]

Let me just be the first to say that we're all DOOOOOMED!

 

[ReVolver]

Makes me glad I'm not there *looks at my country* .... :banghead:

 

[FireCat]

That's fucked up!