European markets fall as share sell-off continues

[dipsydoodle]

Source: BBC News 5 August 2011 Last updated at 08:45 BST

European markets have continued the global shares sell off, with investors worried about both the eurozone debt crisis and the strength of the US economic recovery.

The UK's FTSE 100 index was down 3.2%, Germany's Dax was 3.5% lower and France's Cac 40 index fell 2.8%.

Earlier on Friday, Asian markets had slumped with Japan's main index down 3.7% and Hong Kong's 4.6% lower.

Read more: http://www.bbc.co.uk/news/business-14416204

[muriel_volestrangler]

1. A bit of a bounce just after that was written

Last updated at 09:26:
The UK's FTSE 100 index was down 1.9%, Germany's Dax was 1.7% lower and France's Cac 40 index fell 0.7%.

They suggested on the radio it'll be volatile until the US employment data comes in around lunchtime. That will determine the direction after that - plunge or recovery.

[dipsydoodle]

2. Its bouncing

I noticed immediately after you posted it had changed again for the worse.

[Ghost Dog]

3. GLOBAL MARKETS-Economy, euro zone crisis batter stocks

LONDON, Aug 5 (Reuters) - World stocks sank for an eighth straight session of losses on Friday, with investors racked by worries about the slowing global economy and the dangerous spread of euro zone debt anguish into Italy and Spain.

There was widespread demand for policymakers to beef up plans to tackle the euro zone's crisis and prevent the U.S. economy in particular from sliding back into recession. Global equities were down 1.5 percent on the day for a roughly 8.5 percent loss this week. Emerging market shares stumbled 3.3 percent on the day...

...Positions in equities and commodities were being scrapped and a scramble for the safety of cash and top-rated government bonds was on.

"The economic outlook is stressing investors to a great degree and sentiment is likely to remain extremely fragile," said Keith Bowman, equity analyst at Hargreaves Lansdown. "The U.S. economy has been slowing and is moving into a phase where we are going to see spending cuts enforced. Investors are concerned as to where future growth will come from with this backdrop of debt for so many governments."

/... http://uk.reuters.com/article/2011/08/05/markets-global-idUKL6E7J50G120110805


Bloodbath in Europe Follows Bloodbath in Asia (Mike Shedlock)

Bloodbath in Europe Follows Bloodbath in Asia; Don't Worry, It's Orderly; First Rule of Panic

/... http://globaleconomicanalysis.blogspot.com/2011/08/bloodbath-in-europe-follows-bloodbath.html


Sarkozy, Merkel to Discuss Crisis Today

French President Nicolas Sarkozy and German Chancellor Angela Merkel will discuss the euro region’s debt crisis today after concerns that it will spread to Italy and Spain helped trigger a global market rout.

Sarkozy will also speak with Spanish Prime Minister Jose Luis Rodriguez Zapatero, according to an official at the French president’s office in Paris. Sarkozy spoke with European Central Bank President Jean-Claude Trichet yesterday and the previous day, said the person, who cannot be identified under government policy. The official wouldn’t give details on the timing of the calls.

European leaders have failed to stamp out concerns that Italy and Spain will need bailouts even after agreeing last month to retool their 440 billion-euro ($620 billion) bailout fund. More than $4.4 trillion have been wiped out from equity- market values worldwide since July 26 as speculation mounts the world economy faces a new recession that would exacerbate Europe’s debt woes.

Italian and Spanish bonds fell yesterday even after Trichet said the ECB will start buying government debt again amid renewed tensions in bond markets. The yield on Italian and Spanish debt rose to 6.20 percent and 6.28 percent, respectively, and are close to euro-era highs.

/... http://www.bloomberg.com/news/2011-08-05/sarkozy-to-discuss-euro-market-turmoil-with-merkel-and-zapatero-today.html

Spanish stock market dips 2 per cent, but rises again

Aug 5, 2011, 8:21 GMT Madrid - The Madrid stock market's main Ibex 35 index dipped 2 per cent after trading opened Friday, amid concern over the US financial situation and growing pressure on southern European economies.

Among the biggest companies, Telefonica lost 1.16 per cent, Santander bank 1.6 per cent, BBVA bank 1.68 per cent and the energy company Iberdrola 1.77 per cent.

Within an hour the Ibex 35 rose again by 2.5 per cent.

On Thursday, Spain raised 3.3 billion euros (4.6 billion dollars) by selling three- and four-year bonds at an interest rate of 4.9 and 5.05 per cent respectively, the highest rate since 2008.

/... http://www.monstersandcritics.com/news/business/news/article_1655183.php/Spanish-stock-market-dips-2-per-cent-but-rises-again


Madrid shares higher on rumours ECB to buy bonds

AFP - The IBEX-35 index was up 0.53 percent after the first hour of trade, having slumped more than 2.0 percent at the open. Dow Jones Newswires said there were rumours the ECB had asked for prices on Spanish and Italian debt, a signal that it could be about to buyEnlarge Photo

The IBEX-35 index was up 0.53 percent after the first hour of trade, having slumped …

Madrid's share market staged a dramatic recovery Friday led by banking stocks amid rumours the European Central Bank is preparing to buy hard-hit Spanish and Italian bonds.

The IBEX-35 index was up 0.53 percent after the first hour of trade, having slumped more than 2.0 percent at the open. Dow Jones Newswires said there were rumours the ECB had asked for prices on Spanish and Italian debt, a signal that it could be about to buy.

/... http://uk.news.yahoo.com/madrid-shares-higher-rumours-ecb-buy-bonds-073433862.html

[xchrom]

4. Recommend - good info ghost dog. Nt

[AnneD]

5. We all know the jobs numbers will all be....

Happy talk while the spotlight is on then revised up when no one is looking. Remember, all those teachers and other public servants that were let go will start showing up on the newly unemployed rolls soon.

I truly believe this is the start of the slide downward AKA the great depression.

Morning GD and Xchrom. See you guys are at it early too!