News / Economy

Asian, European Markets Tumble on Egyptian Turmoil, Portuguese Uncertainty

A woman passes an electronic sign showing the FTSE 100 index, in the City of London, July 3, 2013.
A woman passes an electronic sign showing the FTSE 100 index, in the City of London, July 3, 2013.
VOA News
Asian and European markets tumbled Wednesday on fears of continued Egyptian political unrest and uncertainty over the fate of the Portuguese ruling coalition.

Global oil prices hit a 14-month high, with the light sweet crude traded in New York topping $102 a barrel.  Investors worried that the crisis in Egypt could affect Middle East oil shipments through the Suez Canal, a key transit point.

A woman walks past a bank electronic board showing the Hong Kong share index outside a Hong Kong local bank, July 3, 2013.A woman walks past a bank electronic board showing the Hong Kong share index outside a Hong Kong local bank, July 3, 2013.
x
A woman walks past a bank electronic board showing the Hong Kong share index outside a Hong Kong local bank, July 3, 2013.
A woman walks past a bank electronic board showing the Hong Kong share index outside a Hong Kong local bank, July 3, 2013.
Hong Kong's Hang Seng index plunged 2.5 percent, while markets in London, Frankfurt and Paris all ended down more than 1 percent.  U.S. shares are ahead slightly in abbreviated trading a day ahead of the country's Independence Day celebration.

European traders were especially worried about the political uncertainty in debt-ridden Portugal, after two key government ministers resigned this week in protest of Lisbon's austerity measures endorsed by Prime Minister Pedro Passos Coelho.  Interest rates on government bonds soared on fears his government might collapse, while shares on Lisbon's stock exchange plummeted more than 5 percent.

One official at Portugal's Carregosa Bank, Joao Leite, said investors are worried about the uncertainty.

"This is the worst case for investors, not knowing what's going to happen. It would be better for the markets knowing that we are going to have elections on a new term, rather than not knowing what's going to happen and seeing the prime minister trying to address the situation, saying that he thinks he is going to manage to keep the coalition alive. This is the worst situation for investors. The worst is when you do not know what to expect," said Leite.

Aside from the new turmoil, the global economy has already been hampered by a slow economic recovery in China, the world's second largest economy, and a recession in Europe.  Investors are also nervous about what a key U.S. jobs report due out Friday will show.

A survey showed that growth in China's services sector, an industry of growing importance in the country, fell in June to its slowest pace in nine months.

Some information for this report was provided by AP, AFP and Reuters.

You May Like

Video Obama Announces Plan to Send 3,000 Troops to Liberia in Ebola Fight

At US Centers for Disease Control and Prevention, Obama details troop deployment and other pieces of US plan More

Video China Muslims Work to Change Perceptions After Knife Attacks

Muslims in Kunming say that they condemn the violence, it is not a reflection of the true beliefs of their faith More

Humanitarian Aid, Equipment Blocked in Cameroon

Move is seen as a developing supply crisis in West Africa More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Enviropreneur Seeks to Save the Environment, Empower the Communityi
X
September 16, 2014 2:06 PM
Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video Enviropreneur Seeks to Save the Environment, Empower the Community

Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video West Trades Accusations Over Ransoms

As world leaders try to forge a common response to the threat posed by Islamic State militants in Iraq and Syria, there is simmering tension over differing policies on paying ransoms. In the past month, the jihadist group has beheaded two Americans and one Briton. Both countries refuse to pay ransom money. As Henry Ridgwell reports for VOA from London, there is uncertainty in the approach of some other European nations.
Video

Video Scotland Independence Bid Stokes Global Interest

The people of Scotland are preparing to vote on whether to become independent and break away from the rest of Britain, in a referendum being watched carefully in many other countries. Some see it as a risky experiment; while others hope a successful vote for independence might energize their own separatist demands. Foreign immigrants to Scotland have a front row seat for the vote. VOA’s Henry Ridgwell spoke to some of them in Edinburgh.
Video

Video Washington DC Mural Artists Help Beautify City

Like many cities, Washington has a graffiti problem. Buildings and homes, especially in low-income neighborhoods, are often targets of illegal artwork. But as we hear from VOA’s Julie Taboh, officials in the nation's capital have come up with an innovative program that uses the talents of local artists to beautify the city.
Video

Video US Muslim Leaders Condemn Islamic State

Leaders of America's Muslim community are condemning the violent extremism of the Islamic State group in Iraq and Syria. The U.S. Muslim leaders say militants are exploiting their faith in a failed effort to justify violent extremism. VOA correspondent Meredith Buel reports.
Video

Video Americans' Reaction Mixed on Obama Strategy for Islamic State Militants

President Barack Obama’s televised speech on how the United States plans to “degrade and destroy” the group known as the Islamic State reached a prime-time audience of millions. And it came as Americans appear more willing to embrace a bolder, tougher approach to foreign policy. VOA producer Katherine Gypson and reporter Jeff Seldin have this report from Washington.
Video

Video Authorities Allege LA Fashion Industry-Cartel Ties

U.S. officials say they have broken up crime rings that funneled tens of millions of dollars from Mexican drug cartels through fashion businesses in Los Angeles. Mike O'Sullivan reports that authorities announced nine arrests, as 1,000 law enforcement agents fanned out through the city on Wednesday.
Video

Video Bedouin Woman Runs Successful Business in Palestinian City

A Bedouin woman is breaking social taboos by running a successful vacation resort in the Palestinian town of Jericho. Bedouins are a sub-group of Arabs known for their semi-nomadic lifestyle. Zlatica Hoke says the resort in the West Bank's Jordan Valley is a model of success for women in the region.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7722
JPY
USD
107.08
GBP
USD
0.6171
CAD
USD
1.1041
INR
USD
61.075

Rates may not be current.