Euro stocks fall sharply over debt crisis uncertainity
Published 03/10/2011 | 09:09
EUROPEAN stock index futures fell sharply today, following a dip in Asian stocks.
And the euro weakened on serious concerns that the euro zone's debt crisis will kill global growth.
MSCI's broadest index of Asia Pacific shares, outside of Japan, fell 3.6pc, with falls exacerbated by a plunge in Hong Kong shares, amid concerns about China's property market, slipping closer to a 16-month low.
According to Edward Huang, equity strategist at Haitong International in Hong Kong: "Investors are selling off stocks that have been well-regarded, possibly with some funds anticipating redemption pressures and liquidating them to raise cash."
Europe's sovereign debt problems have been the biggest factor in a global equity market slide that began in late July.
EU leaders are bickering over how to tackle the crisis and the possibility of a Greek default looming ever-larger.
"A Greek default is a sort of Pandora's box no one wants to open," said Teppei Ino, of the Bank of Tokyo-Mitsubishi UFJ.