News / Economy

European Markets Bounce Back After Volatile Trading

Traders at the Saxo Banque study their screens in their offices in Paris, August 10, 2011
Traders at the Saxo Banque study their screens in their offices in Paris, August 10, 2011

European stock markets fell in early trading Thursday, largely on concerns about the fiscal health of the continent’s banks. But the markets bounced back in the afternoon, after French and German leaders scheduled an emergency summit to address the euro zone’s debt crisis.

It looked like another day of heavy losses on European markets, following drops in key Asian stock indexes.

But the trend was reversed in the early afternoon.

Analysts said investors took some comfort from news that French President Nicolas Sarkozy and German Chancellor Angela Merkel are to meet next Tuesday to discuss the continent’s debt situation.

Even with those late-day gains, during the last two weeks the London stock index is down more than 15 percent, and the German and French indexes are down more than 20 percent.

Many concerns

Investors have become increasingly concerned that troubled economies in the euro zone may face further problems meeting their debt payments, and that more countries and commercial banks may be affected by the crisis.

But the move by the two key European leaders to increase their personal involvement in trying to ease the situation provided enough confidence to turn stock prices around.

At the London School of Economics, Professor Iain Begg says decisive action by national leaders is exactly what is needed to address the debt crisis and the resulting impact on stock markets, bank confidence and economic growth.

“If we set too much store by one day’s movement, or even a few hours movement in the markets, we’d end up spending so much time gazing at our own navels that we wouldn’t be able to work out what’s really going on," said Begg. "And I think that what the politicians have been given is a warning sign. And now it’s up to the politicians to act much more decisively and cohesively. If they do that, then this froth in the market will probably go away.”

Lack of confidence

During a debate in the British Parliament Thursday, Finance Minister George Osborne blamed the stock market drops on what he called a lack of confidence in ability of governments to repay their debts. He called for international action to address the situation.

“This is a global as well as a European crisis, and at this autumn’s meeting of the IMF and the G-20 we need far greater progress on global imbalances," Osborne said. "We need an international framework that allows creditor countries like China to increase demand, and debtor countries to make the difficult adjustments necessary to repay them.”

Europe’s Central Bank has already issued guarantees designed to shore up confidence in troubled economies like Italy, Portugal and Greece. But some experts say the continent’s markets will not truly stabilize until there is agreement on issuing European bonds, through which individual countries would be able to borrow money with the full backing of all the euro zone countries

You May Like

Multimedia Social Media Documenting, Not Driving, Hong Kong Protests

Unlike in Arab Spring uprisings, pro-democracy protesters in Hong Kong aren't relying on Twitter and Facebook to organize, but social media still plays a role More

Analysis: Occupy Central Not Exactly Hong Kong’s Tiananmen

VOA's former Hong Kong, Beijing correspondent compares and contrasts 1989 Tiananmen Square protest with what is now happening in Hong Kong More

Bambari Hospital a Lone Place of Help in Violence-Plagued CAR

Only establishment still functioning in CAR's second city is main hospital 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.
The Legacy of Jimmy Carter: The Preacher from Plainsi
X
October 01, 2014 10:45 AM
It is common in the United States to see tourists flock to sites associated with America's presidents. Some are privately owned and others are run by the National Park Service or the National Archives -- but most have helped draw business and people into the towns and cities where they are located. As VOA’s Kane Farabaugh reports, there is one particular presidential hometown that is unique in what it has to offer those who make the trip.
Video

Video The Legacy of Jimmy Carter: The Preacher from Plains

It is common in the United States to see tourists flock to sites associated with America's presidents. Some are privately owned and others are run by the National Park Service or the National Archives -- but most have helped draw business and people into the towns and cities where they are located. As VOA’s Kane Farabaugh reports, there is one particular presidential hometown that is unique in what it has to offer those who make the trip.
Video

Video Hong Kong Protests Draw New Supporters on National Holiday

On the 65th anniversary of the founding of Communist China, Hong Kong protesters are hoping to stage the largest pro-democracy demonstration since the 1989 Tiananmen protests. VOA's Brian Padden visited one of the protest sites mid-day, when the atmosphere was calm and where the supporters were enthusiastic about joining what they are calling the umbrella revolution.
Video

Video India's PM Continues First US Visit

India's prime minister is on his first visit to Washington, to strengthen political and economic ties between the world's oldest and the world biggest democracies. He came to the U.S. capital from New York, the first stop on his five-day visit to the country that denied him an entry visa in the past. From Washington, Zlatica Hoke reports Modi seemed most focused on attracting foreign investment and trade to increase job opportunities for his people.
Video

Video Malaysia Struggles to Stop People Joining Jihad

Malaysian authorities say militant groups like the so-called "Islamic State" have used social media to entice at least three dozen Malaysian Muslims to fight in what they call "jihad" in Syria and Iraq. As Mahi Ramkrishnan reports from Kuala Lumpur, counterterrorism police are deeply worried about what could happen when these militants return home.
Video

Video Could US Have Done More to Stop Rise of Islamic State?

President Obama says airstrikes against Islamic State militants in Syria will likely continue for some time because, in his words, "there is a cancer that has grown for too long." So what if President Obama had acted sooner in Syria to arm more-moderate opponents of both the Islamic State and the Syrian government? VOA State Department Correspondent Scott Stearns reports from the United Nations.
Video

Video Treasure Hunters Seek 'Hidden Treasure' in Central Kenya

Could a cave in a small village in central Kenya be the site of buried treasure? A rumor of riches, left behind by colonialists, has some residents dreaming of wealth, while others see it as a dangerous hoax. VOA's Gabe Joselow has the story.
Video

Video Ebola Patients Find No Treatment at Sierra Leone Holding Center

At a holding facility in Makeni, central Sierra Leone, dozens of sick people sit on the floor in an empty university building. They wait in filthy conditions. It's a 16-hour drive by ambulance to Kailahun Ebola treatment center. Adam Bailes was there and reports on what he says are some of the worst situations he has seen since the beginning of this Ebola outbreak. And he says it appears case numbers may already be far worse than authorities acknowledge.
Video

Video Identifying Bodies Found in Texas Border Region

Thousands of immigrants have died after crossing the border from Mexico into remote areas of the southwestern United States in recent years. Local officials in south Texas alone have found hundreds of unidentified bodies and buried them in mass graves in local cemeteries. Now an anthropologist and her students at Baylor University have been exhuming bodies and looking for clues to identify them. VOA’s Greg Flakus has more from Waco, Texas.
Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.Colonel Steve ‘Spiros’ Pisanos left Greece and came to the U.S. to learn to fly. He flew fighters for the Allies in World War II, narrowly escaping death multiple times.

AppleAndroid

World Currencies

EUR
USD
0.7866
JPY
USD
109.25
GBP
USD
0.6139
CAD
USD
1.1120
INR
USD
61.428

Rates may not be current.