European Stocks Down, Ireland in Spotlight

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European stocks on Monday followed last Friday’s fall amid concerns about increasing problems for the Irish government.


The Stoxx Europe 600 index lost 0.5% to 268.84 in morning trading. Last Friday, the index dropped 0.4% to settle at 270.18, with mining stocks leading the declines, ending down 0.7% last week.


In Spain, the IBEX 35 index dropped 0.8% to 10,138.80. The German DAX 30 index slumped 0.8% to 6,683.66.


In London, FTSE 100 index was down 0.6% to 5,760.70. Shares of BHP Billiton lost 0.8%.


The French CAC 30 index was down 0.8% to 3,802.10. European Aeronautic Defense & Space Co. dropped 1.4%.


According to Ilya Spivak, currency analyst at Daily FX, the aftermath of Fed’s $600 billion plan continued to play out. It was fears of a sovereign default on the euro zone’s periphery that he additionally stated why investors sold stocks.


In Ireland, Allied Irish Banks PLC led the decline of financial stocks, down 1.3%.


Ireland which is reported to be holding preliminary talks with European Union officials on an emergency aid package was in focus. European policymakers are urging Ireland to take emergency aid to restrain a debt crisis rattling its markets. This nation was pressed to seek up to $A83 billion within days.


On Saturday, it was reported that a proposal could entail 60 billion to 80 billion euros of loans from the European Financial Stability Fund.


German and other European officials urged Ireland to take a bailout. However, this nation is reluctant to accept as it would likely require tight financial austerity. In 2010, its budge gap could rise to 30% of gross domestic product.


Two days ago, the IMF’s managing director said that Ireland would receive willing assistance from the agency if it asked for support. Greece did accept to a joint EU-IMF economic-rescue package which was worth 110 billion euros in exchange of raising taxes and trimming public-sector pay and pensions.


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Sarah Skovachez has 376 articles online and 14 fans

Economics is the study of our lives,our jobs, our homes, our families and the little decisions we face every day. Thus, I am keen on reading and studying economic issues.

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European Stocks Down, Ireland in Spotlight

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This article was published on 2010/11/16