Wednesday, April 28, 2010
London stocks fell again this morning after markets around the world plunged amid fears that Europe is failing to take control of Greece’s financial crisis.
The global sell-off spread from American and Europe to Asia overnight after a leading credit rating agency slashed the status of Greek government debt to ‘junk’, raising fears the country could be sent tumbling out of the euro.
Standard & Poor’s also lowered its rating on Portuguese bonds by two notches, indicating Greece’s financial troubles are spreading to other eurozone countries, breeding fears of contagion. An unnamed European Central Bank official described Greece’s woes to the ‘Ebola virus’.
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‘The chances of a default by the Greek government are increasing not by the day but by the hour,’ said Koen De Leus, economist at KBC Securities.
‘If the IMF and European governments don’t come up with something quickly, then I see the market going down further quite rapidly.’
He said the Greek crisis was clouding everything else on financial markets.
This article was posted: Wednesday, April 28, 2010 at 7:34 am