Sunday 4 December 2016

Debt crisis: Merkel and Sarkozy disappoint nervous investors

Independent.ie reporters

Published 17/08/2011 | 10:50

Nicolas Sarkozy and German
Chancellor Angela Merkel talk
during a news conference in
Paris yesterday. The leaders of
France and Germany met for
talks to discuss further
measures they can take to
shore up investor confidence
in the euro zone
Nicolas Sarkozy and German Chancellor Angela Merkel talk during a news conference in Paris yesterday. The leaders of France and Germany met for talks to discuss further measures they can take to shore up investor confidence in the euro zone

European markets finished in negative territory today after statements from French president Nicolas Sarkozy and German chancellor Angela Merkel failed to calm worries about the region's debt problems.

  • Go To

Frankfurt’s Dax closed off 0.77pc at 5,948.94 points while London’s FTSE 100 Index ended 0.5pc lower at 5,331.60.



US markets had opened higher on strong corporate results from a number of companies but then ran out of steam.



When European markets closed the Dow Jones was off 0.8pc at 11,397.00 points.



After a two hour meeting in Paris, the pair called for greater economic discipline and unity among European nations but declined to take on expensive financial measures like euro bonds seen by many investors as the only way to halt the continent's debt problems.



Bank stocks were again under pressure in London with Barclays down on plans for a tax on financial transactions could hit trading volumes.



Inter-dealer broker ICAP and London Stock Exchange were also down on the plans.



Investors had also hoped that there would be more discussion on the expansion of the European €440bn bailout fund.



Economists believe it will have to be increased to at least €1 trillion to be credible with large countries like Italy and Spain finding it more difficult to borrow on open markets.

Read More

Promoted articles

Editors Choice

Also in Business