LONDON: European equities dived and the euro hit a new one-year dollar low on Tuesday, as investors voiced fears about the fallout from Greece's debt crisis and prospects for other weak eurozone economies.
The London stock market slid 2.26 percent, Paris lost 3.76 percent and Frankfurt shed 2.27 percent in late afternoon deals.
Madrid tumbled 4.85 percent, Athens slumped by 6.68 percent and Lisbon fell more than four percent.
In foreign exchange trade, the European single currency nosedived to 1.3073 dollars, plumbing the lowest level since April 28, 2009 despite a deal on a 110-billion-euro (145-billion-dollar) international bailout for Greece.
"Markets do not seem greatly impressed by the launch of the Greek rescue plan," which was agreed on Sunday, said Unicredit analyst Marco Annunziata.
"The 110-billion-euro program ... barely met expectations, without generating any positive surprise, and this probably helps explain the lukewarm reaction."
Concern over the financial health of the eurozone also helped drag down Wall Street, with the Dow Jones Industrial Average dropping by 1.94 percent and the tech-heavy Nasdaq index down 2.77 percent in midday trading.
Over the weekend, eurozone finance chiefs approved an unprecedented three-year package of loans for Greece, struggling to shake off a crippling debt and deficit burden that has plunged the country into turmoil.
"The EU/IMF bailout of Greece provides enough funding for the next 12 months or so," said VTB Capital economist Neil MacKinnon.
"However, the ability and willingness to bail out another eurozone fiscal miscreant is politically difficult," he added, hinting at other fiscally-challenged euro area nations like Ireland, Spain and Portugal.
Of the 110 billion euros to be made available to Greece, the eurozone would provide 80 billion and the International Monetary Fund 30 billion.
And in a policy U-turn, the European Central Bank agreed to accept Greece's junk-rated government bonds as collateral for loans.
In return, the Greek Socialist government will have to impose harsh austerity measures, as it seeks to slash its public deficit from nearly 14.0 percent of output last year to less than 3.0 percent by the end of 2014.
"The ECB's decision to suspend minimum collateral requirements for Greek bonds helps alleviate an imminent banking crisis but the ECB might find they end up doing this for other 'club Med' bonds," added MacKinnon.
"In addition, a big question-mark remains over whether the government can implement unprecedented stringent budget measures and whether the Greek economy can avoid a serious slump beyond the 4.0 percent decline expected this year."
The London stock market slid 2.26 percent, Paris lost 3.76 percent and Frankfurt shed 2.27 percent in late afternoon deals.
Madrid tumbled 4.85 percent, Athens slumped by 6.68 percent and Lisbon fell more than four percent.
In foreign exchange trade, the European single currency nosedived to 1.3073 dollars, plumbing the lowest level since April 28, 2009 despite a deal on a 110-billion-
"Markets do not seem greatly impressed by the launch of the Greek rescue plan," which was agreed on Sunday, said Unicredit analyst Marco Annunziata.
"The 110-billion-
Concern over the financial health of the eurozone also helped drag down Wall Street, with the Dow Jones Industrial Average dropping by 1.94 percent and the tech-heavy Nasdaq index down 2.77 percent in midday trading.
Over the weekend, eurozone finance chiefs approved an unprecedented three-year package of loans for Greece, struggling to shake off a crippling debt and deficit burden that has plunged the country into turmoil.
"The EU/IMF bailout of Greece provides enough funding for the next 12 months or so," said VTB Capital economist Neil MacKinnon.
"However, the ability and willingness to bail out another eurozone fiscal miscreant is politically difficult," he added, hinting at other fiscally-challenged euro area nations like Ireland, Spain and Portugal.
Of the 110 billion euros to be made available to Greece, the eurozone would provide 80 billion and the International Monetary Fund 30 billion.
And in a policy U-turn, the European Central Bank agreed to accept Greece's junk-rated government bonds as collateral for loans.
In return, the Greek Socialist government will have to impose harsh austerity measures, as it seeks to slash its public deficit from nearly 14.0 percent of output last year to less than 3.0 percent by the end of 2014.
"The ECB's decision to suspend minimum collateral requirements for Greek bonds helps alleviate an imminent banking crisis but the ECB might find they end up doing this for other 'club Med' bonds," added MacKinnon.
"In addition, a big question-mark remains over whether the government can implement unprecedented stringent budget measures and whether the Greek economy can avoid a serious slump beyond the 4.0 percent decline expected this year."
Other analysts also questioned whether the bailout deal would be enough to allow Greece to raise its own private financing by 2011.
"After a closer examination of the Greek financials, the 110 billion euros on the table from the EU and IMF will not be sufficient unless private markets start lending again," said Currencies Direct analyst Philip Ryan.
"In the short term, the bailout will mean that Greece will have sufficient cash to repay an 8.5 billion euros that is due in a fortnight.
"However, the suggestion that Greece will be able to raise its own finance by the end of 2011 is optimistic, according to bond market specialists."
In earlier Asian trade, Asian markets extended losses as credit-tightening steps in China and a windfall tax on mining firms in Australia overshadowed a Wall Street rally and the fresh hopes for Greece.
Hong Kong fell 0.23 percent, Shanghai shed 1.23 percent, Sydney gave up 1.01 percent, while Tokyo was closed for a public holiday.
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Chanting is a great service, when we chant we invite Krsna and Radha to our hearts and offer Them our service, our senses, our time, our voice and our love so They can take care of our whole life and engage us like They want to. This means we are surrended and we have complete faith the Lord will be there for us, to protect us any time in any situation we are in and we accept anything They give us. When we achieve this stage of complete faith we may understand our position as eternal servants and advance to pure chanting as our goal of life.
Chant:
Hare Krishna, Hare Krishna, Krishna Krishna Hare Hare
Hare Rama, Hare Rama, Rama Rama Hare Hare
"After a closer examination of the Greek financials, the 110 billion euros on the table from the EU and IMF will not be sufficient unless private markets start lending again," said Currencies Direct analyst Philip Ryan.
"In the short term, the bailout will mean that Greece will have sufficient cash to repay an 8.5 billion euros that is due in a fortnight.
"However, the suggestion that Greece will be able to raise its own finance by the end of 2011 is optimistic, according to bond market specialists."
In earlier Asian trade, Asian markets extended losses as credit-tightening steps in China and a windfall tax on mining firms in Australia overshadowed a Wall Street rally and the fresh hopes for Greece.
Hong Kong fell 0.23 percent, Shanghai shed 1.23 percent, Sydney gave up 1.01 percent, while Tokyo was closed for a public holiday.
--
Chanting is a great service, when we chant we invite Krsna and Radha to our hearts and offer Them our service, our senses, our time, our voice and our love so They can take care of our whole life and engage us like They want to. This means we are surrended and we have complete faith the Lord will be there for us, to protect us any time in any situation we are in and we accept anything They give us. When we achieve this stage of complete faith we may understand our position as eternal servants and advance to pure chanting as our goal of life.
Chant:
Hare Krishna, Hare Krishna, Krishna Krishna Hare Hare
Hare Rama, Hare Rama, Rama Rama Hare Hare
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Please use your discretion before acting on the ideas expressed in the group.
Happy Trading,
United we grow!!!
Happy Trading,
United we grow!!!
.
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