Debt crisis: Stock markets run out of steam to end week down
European stock markets ran out of steam today and ended the week down.
New recession fears and speculation about a short-term funding crisis in the European banking system hit financials.
Early in the week gloomy economic data, including a downgrade on the global economy from investment bank Morgan Stanley, also worried investors.
The ISEQ index of Irish shares finished down 1pc while London’s FTSE 100 Index closed down 51.5 points at 5,040.8 having fallen below the 5,000 psychological barrier earlier.
Germany’s DAX finished the day more than 2pc down at 5,480.00.
While Wall Street clawed back most of its losses in early trade, markets have since run out of steam as investors retreated to safer havens such as gold which pushed ahead to fresh highs of $1,878 an ounce.
One of the few rays of light for investors came from the technology sector after the announcement that Hewlett-Packard planned to buy UK software firm Autonomy in a multi-billion deal.
When European markets closed, US indices were mixed on investor concern.