|
LONDON – European stocks recovered Thursday from heavy losses the previousday, while the euro touched a 22-month low after the continent'sleaders failed to reach a breakthrough in their crisis resolutionefforts. Stocks took a pummeling the previous session as expectationsdissipated that the European Union leaders in Brussels would agreeany meaningful measures to boost economic growth or stabilizefinancial markets. "Well for once a European summit did not disappoint; they promisednothing and that is exactly what we got," said Gary Jenkins,managing director of Swordfish Research. "Is it just me or doesthat suggest a frightening lack of urgency?" Though there were discussions about such things as jointly-issuedeurobonds and the prospect of some form of cross-border depositinsurance scheme, nothing of any substance was announced. Herman Van Rompuy said more work needs to be done in the run-up tothe next EU summit on June 28-29. The problem with that timeframe is that Europe, and the 17-countryeurozone in particular, is facing another timetable that couldscupper their plans. The Greek general election on June 17 could see anti-bailoutpolitical parties gain power, which would raise the likelihood ofthe country leaving the euro. That likelihood has been growingsince early May, when political parties opposed to the terms of thecountry's financial rescue deprived pro-austerity parties of amajority at the polls. "With last night's summit done, we now start the run-up to Greekelections in mid-June, possibly the single most decisive eventsince the crisis began," said Chris Beauchamp, market analyst at IGIndex. For now, investors in stock markets are buying up some beaten-downstocks, particularly in Europe despite more grim economic news,including mounting signs of a deep recession. The monthly purchasing managers' index from Markit, a gauge ofbusiness activity, fell to 45.9 in May from 46.7 in April. The fallwas bigger than the expected decline to 46.5. Anything below 50indicates a contraction. Germany's DAX was up 0.5 percent at 6,316 in spite of the Markitfigures and a worse-than-expected business survey from thewell-regarded Ifo Institute. The CAC-40 in France rose 0.8 percent to 3,028 while the FTSE 100index of leading British shares was 1.3 percent higher at 5,333despite figures showing that the U.K. economy contracted by agreater-than-expected 0.3 percent in the first quarter. However, with Europe's debt crisis still raging and a Greek exitfrom the euro openly discussed, the euro remained under pressure,dropping to a fresh 22-month low of $1.2515 at one stage beforerecovering slightly to $1.2578. U.S. stocks underperformed their European counterparts as they hadsuffered milder losses the day before — the Dow Jonesindustrial average was flat at 12,495 while the broader S&P 500index rose 0.1 percent at 1,320. Earlier in Asia, Japan's benchmark Nikkei 225 closed marginallyhigher at 8,563.38, having earlier in the day skimmed 8,496.61— its first time below 8,500 in more than four months. Hong Kong's Hang Seng fell 0.6 percent to 18,666.40. South Korea'sKospi swung between gains and losses before ending up 0.3 percentat 1,814.47. Oil prices recovered alongside equities after falling to ten-monthlows amid the prevailing gloom in world markets — benchmarkoil for July delivery was up $1.05 to $90.95 a barrel in electronictrading on the New York Mercantile Exchange. _____ Pamela Sampson in Bangkok contributed to this report. I am an expert from aluminum-slidingdoors.com, while we provides the quality product, such as Bi Fold Wardrobe Doors Manufacturer , Rotating Clothes Rack, Glass Sliding Closet Door,and more.
Related Articles -
Bi Fold Wardrobe Doors Manufacturer, Rotating Clothes Rack,
|
