Tue 25 May 2010
Concerns over North Korea Shake Markets and Euro
Posted by admin under Markets , World News Comments Off
(From the nytimes.com) Global stocks skidded Tuesday and the euro resumed its fall, as reports that North Korea had threatened its southern neighbor jolted nerves already frayed by concerns about public sector finances in Europe. Wall Street was headed for a fall at the start of trading. “We’re seeing the same problems with Europe,” Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels, said, “except now attention is focused more on Spain,” where the central bank took over a failing lender, CajaSur, over the weekend and four smaller banks just agreed to merge.
“The North Korean situation is also putting pressure on stocks,” Mr. Gijsels said. “In a normal environment, this wouldn’t be having such a big impact — they talk about going to war every few months, it seems. But markets are quite nervous and will take any excuse to sell off.”
He said investors were also unnerved by the speed of a decline in equities Monday in New York, where stocks sold off sharply in the last half hour of trading.
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