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Jul 12, 2011

European stocks battered by the Debt Crisis

Stock market indices declined again due to fears of debt crisis in the eurozone will spread to Italy and Spain. Italian stock exchange's main index fell 4 percent in early trading session on Tuesday (07/12). In Germany, the Dax fell 1.6 percent, and the CAC index in France fell 1.7 percent. In Britain, the main FTSE 100 stock index dropped 1 percent. Meanwhile, the Nikkei index in Tokyo fell 1.4 percent at closing.

Monday, eurozone finance ministers (euro zone), the user states the euro currency, expressed readiness to implement new measures to prevent the spread of the crisis. Following the decline in the stock index on Monday, the rates of the euro in early trading Tuesday, fell to the lowest point in four months to $ 1.3958 per dollar.

There are fears that Italy and Spain will probably follow Greece, Portugal and the Republic of Ireland and ask for rescue aid funds from the European Union and the International Monetary Fund (IMF). Greek citizens grappling with the impact of their country's debt crisis. Thus was launched the BBC Indonesia.

The euro zone finance ministers also agreed to examine the possibility of lowering interest rates to be paid by Greece, Portugal and the Republic of Ireland, as well as extend the maturity of their debt. "The ministers confirmed their absolute commitment to securing financial stability in the euro area," the statement said the ministers eurozone after eight hours of talks Monday in Brussels.

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