News / Economy

European Stocks Stall After Brief Rally

A European Union flag flies outside the stock exchange in Athens, Greece, May 2012.
A European Union flag flies outside the stock exchange in Athens, Greece, May 2012.
VOA News
Stocks in Europe gave up their initial gains Monday, failing to continue a rally seen in Asia after pro-bailout parties won enough votes in Greece's parliamentary elections to form a government.

Greece's stock exchange surged more than 7 percent at one point, but lost much of its early gain. Elsewhere in Europe, fears about other struggling economies, especially Spain, erased early advances and stocks closed mixed. Major U.S. stock indexes closed mixed Monday.

Borrowing costs for the Madrid government soared to their highest point since Spain adopted use of the euro 13 years ago. The interest rate on Spanish debt topped 7 percent, the point at which Greece, Ireland and Portugal all were forced to secure international bailouts in the last two years.

Japan's Nikkei index finished the day up nearly 2 percent, and in Hong Kong, the Hang Seng gained 1 percent. Analysts, including Robert Halver at Baader Bank, cautioned that any rally could be short-lived because of the extent of the economic problems in Greece, now in its fifth year of recession.
 
"We will have, after a short euphoria, the same old crisis because no problem has been solved," he said. "It is still clear that the Greeks will not survive in the eurozone. No private investment will flow into Greece as the danger that Greece will leave the eurozone is still massive, [and] the yield prospects are very low, so Greece is still the focus of the euro crisis and of the financial markets."

Economist Juan Carlos Martinez of the IE Business School, said European leaders must hold to governmental austerity measures, but still promote economic growth.
 
"No matter how hard Spain tries, and no matter what happens in Greece, a part of the solution for Spain, for Italy, and for some other European countries, is a change on European policies," he said. "It is absolutely necessary to keep the austerity measures, especially in Spain, but it is also absolutely necessary to find some kind of levers or bonds that will allow to combine that austerity with the impulse for growth. Without growth it will be very hard for Spain, no matter what happens in Greece, to get out of the serious situation we are in."

The ongoing turmoil in the 17-nation euro currency bloc has affected markets outside of the continent.

In Afghanistan Sunday, the head of money exchangers in Kabul, Amin Jan Khosti, said traders were swapping euros for dollars to escape the fluctuating situation in Europe.

"Today when I was at the market, people mostly exchanged euro," he said. "They think if today's Greece's turn, maybe tomorrow is Spain and next it will be Portugal's. People think every day their budget deficit is getting deeper."

Khosti also said Afghan businessmen are worried that the euro's ups and downs will damage their trading. Afghans, he added, are already thinking about how the pullout of international troops in 2014 will affect the country's financial situation.

"Because it was Sunday in Europe and we couldn't check the value of the euro online, but when the news about Greece's election and opposition being ahead in the polls reached us, the Euro, which traded 1.26 to dollar, came down to 1.06," he said. "People were trying to exchange euro to dollar."

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

You May Like

Nigeria Incumbent in Tight Spot as Poll Nears

Muhammadu Buhari is running a strong challenge to Goodluck Jonathan, amid a faltering economy and Boko Haram security worries More

Video Liberia's Almost Last Ebola Patient Grateful but Still Grieving

Beatrice Yardolo tells VOA that despite her fame, life is still a struggle as she waits for government's promise of support to arrive More

Video Cambodian Land Grabs Threaten Traditional Communities

At least seven different indigenous groups in Ratanakiri depend mainly on forest products for their survival, say they face loss of their land, traditional way of life More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Liberia's Almost Last Ebola Patient Grateful but Still Grievingi
X
Benno Muchler
March 26, 2015 3:41 PM
Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Liberia's Almost Last Ebola Patient Grateful but Still Grieving

Beatrice Yardolo was to make history as Liberia’s last Ebola patient. Liberians recently started counting down 42 days, the period that has to go by without a single new infection until the World Health Organization can declare a country Ebola-free. That countdown stopped on March 20 when there was another new case of Ebola, making Yardolo’s story a reminder that Ebola is far from over. Benno Muchler reports from Monrovia.
Video

Video Cambodian Land Grabs Threaten Traditional Communities

Indigenous communities in Cambodia's Ratanakiri province say the government’s economic land concession policy is taking away their land and traditional way of life, making many fear that their identity will soon be lost. Local authorities, though, have denied this is the case. VOA's Say Mony went to investigate and filed this report, narrated by Colin Lovett.
Video

Video US, South Korea Conduct Joint Military Exercises

The Eighth U.S. Army Division and the Eighth Republic of Korea Mechanized Infantry Division put on a well orchestrated show of force for the media this week during their joint military training exercises in South Korea. VOA’s Seoul correspondent Brian Padden was there and reports the soldiers were well disciplined both in conducting a complex live fire exercise and in staying on message with the press.
Video

Video Space Program Status Disappoints 'Last Man on the Moon'

One of the films that drew big crowds last week at the annual South by Southwest festival in Austin, Texas, tells the story of the last human being to stand on the moon, U.S. astronaut Eugene Cernan. It has been 42 years since Cernan returned from the moon and he laments that no one else has gone there since. VOA’s Greg Flakus reports.
Video

Video Young Filmmakers Shine Spotlight on Giving Back

A group of student filmmakers from across the United States joined President Barack Obama at the White House this month for the second annual White House Student Film Festival. Fifteen short films were officially selected from more than 1,500 entries by students aged 6 through 18. The filmmakers and their families then joined the president and a group of celebrities for a screening of their films. VOA’s Julie Taboh reports.
Video

Video VOA Exclusive: Interview with Afghan President Ashraf Ghani

Afghan President Ashraf Ghani, during his first visit as president to Washington, gave a one-on-one interview with VOA Afghan Service reporter Said Suleiman Ashna, about his request for a change in U.S. troop levels, the threat from the Islamic State, and repairing relations with the United States and Pakistan. The interview was held at Blair House, late Sunday, in Pashto.
Video

Video California Science Center Tells Story of Dead Sea Scrolls

The ancient manuscripts were uncovered in the mid-20th century, and they are still yielding clues about life and religious beliefs in ancient Israel. As VOA's Mike O'Sullivan reports, an exhibit in Los Angeles shows how modern science is bringing the history of these ancient documents to life.
Video

Video Angelina Jolie Takes Another Bold Step

Hollywood actress and filmmaker Angelina Jolie has revealed she had her ovaries and fallopian tubes removed to lower her odds of getting cancer. Doctors say the huge publicity over her decision will help raise awareness about the importance of cancer screening. VOA’s George Putic has more

All About America

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

World Currencies

EUR
USD
0.9103
JPY
USD
119.37
GBP
USD
0.6704
CAD
USD
1.2481
INR
USD
62.371

Rates may not be current.