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

Obama Pledges 'Everything I Can' to Close Guantanamo

US president says prison continues 'to inspire jihadists and extremists around the world' More

Sierra Leone Educates on Safe Ebola Burials

Also, country is improving at rapid response to isolated outbreaks, but health workers need to be even faster, officials say More

Religion Aside, Christmas Gains Popularity in Communist Vietnam

Increasingly wealthy Vietnamese embrace Christmas precisely because of its non-religious glamor and commercial appeal 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.
US Decision on Cuba Underscores Divisions Among Miami Cubansi
X
Sharon Behn
December 19, 2014 9:34 PM
For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video US Decision on Cuba Underscores Divisions Among Miami Cubans

For decades, older, more conservative Cubans have been gathering at Café Versailles on the corner of Calle Ocho to eat Cuban food and talk politics. After hearing of President Barack Obama’s decision, a number of them gathered in front of the café with posters to protest. VOA's Sharon Behn reports on the situation.
Video

Video Three Cities Bid for Future Obama Presidential Library

President Barack Obama still has two years left in his term in office, but the effort to establish his post-presidential library is already underway. The bid for the Obama Presidential Library is down to four locations in three states -- New York, Hawaii, and Illinois. As VOA’s Kane Farabaugh reports, each of them played an important part in the president’s life before he reached the White House.
Video

Video Cuba Deal is Major Victory for Pope’s Diplomatic Initiatives

Pope Francis played a key role in brokering the US-Cuba deal that was made public earlier this week. It is the most stunning success so far in a series of peacemaking efforts by the pontiff. VOA religion reporter Jerome Socolovsky has more.
Video

Video Fears of More Political Gridlock in 2015

2014 proved to be a difficult year politically for President Barack Obama and a very good year for the U.S. Republican Party. Republican gains in the November midterm elections gave them control of the Senate and House of Representatives for the next two years -- setting the stage for more confrontation and gridlock in the final two years of the Obama presidency. VOA National Correspondent Jim Malone has a preview from Washington.
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.

All About America

AppleAndroid

World Currencies

EUR
USD
0.8143
JPY
USD
119.23
GBP
USD
0.6390
CAD
USD
1.1596
INR
USD
63.304

Rates may not be current.