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

China Investigates Former Powerful Security Chief

Former security chief and member of Politburo Standing Committee, Zhou Yongkang, under investigation for suspected 'serious disciplinary violation' More

India, US Look to Reset Ties During Kerry Visit

This week's talks will be first high level interaction between two countries since Prime Minister Narendra Modi took charge More

Video Young African Leadership Program Renamed to Honor Mandela

YALI program, launched by President Obama in 2010, aims to build skills in business, entrepreneurship, public management and civic leadership 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.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.