Debt Crisis: World shares fall despite good US economic news
Published 06/09/2011 | 12:47
Better-than-expected figures from the US services industry failed to buoy US and European shares today amidst growing concern about the eurozone economy and fears the US is slipping back into recession.
The Standard & Poor’s 500 lost 2.4pc and the Euro Stoxx 50 Index slipped 1.7pc having gained as much as 1.5pc earlier.
In Europe, the Swiss franc depreciated nearly 8pc versus the euro after the Central Bank there said it would spend unlimited amounts of the currency to keep it above €1.2o after investors poured into it as a safe haven from equities.
The stock losses came despite new figures that showed the US services industry grew faster than had been expected.
Analysts said all eyes are on Europe, especially Italy and Greece, while concern about a new worldwide recession is also growing.
In Italy, strikers took the streets after the Government introduced new austerity measures including VAT hikes and higher retirement ages.
Yeesterday, Deutsche Bank boss Josef Ackermann said market conditions reminded him of late 2008.
He also urged politicians on both sides of the Atlantic to avoid a repeat of the financial crisis of 2008 which created the worst recession since the Great Depression.