Debt crisis: Merkel and Sarkozy disappoint nervous investors
Published 17/08/2011 | 10:50
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.
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.