Debt Crisis: Stock markets still nervous as G7 leaders meet in France
Published 09/09/2011 | 11:07
Promises of a $447bn (€324bn) jobs stimulus package from US President Barack Obama did little to pacify nervous stock market investors as Federal Reserve Chairman Ben Bernanke stopped short of detailing plans to boost growth.
Worldwide stocks fell again today with the MSCI World Index slipped 0.7pc in London.
Other indices like the Standard & Poor’s 500 Index also fell while the cost of German borrowing gained.
Safe haven investments like gold and the Swedish krona strengthened.
With US unemployment at 9.1pc and his popularity in the doldrums, President Obama last night called on Congress to pass his package which will benefit the middle classes and businesses.
But following his speech, Mr Bernanke failed to spell out how the US economy will grow, disappointing already weary investors.
Ministers from the Group of Seven nations meet in France today amid growing expectations of a Greek default.
Earlier this week, the European Central Bank left interest rates at historic lows putting fears of inflation behind concerns about a slowdown in the continent’s economy.