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World markets down on Greek debt fears
BayBak, Azerbaijan | 593 days ago | Monday, 3rd October , 2011 , 15:04 [pm] | International
|.|| Hong Kong’s Hang Seng index fell 4.9 per cent, while Australia’s S&P ASX 200 fell 2.12 per cent.
Benchmark oil for November delivery
Stock markets in Europe and Asia have slumped on increased fears that Greece could default on its debt, potentially pitching the global economy into recession.
Benchmark indexes in London, Paris and Frankfurt were down by about two per cent in morning trading on Monday, one day after Greece said it would fail to meet budget deficit reduction targets in 2011, raising further concerns over stability of the eurozone.
The ramifications of a possible Greek default prompted shares in the Franco-Belgian bank Dexia to slide nearly 12 per cent at the opening of trade following a downgrade warning by Moody’s over concerns about its liquidity.
Other French banks, which are considered by analysts to be exposed to Greek debt, were also hit hard, with shares in Credit Agricole and Societe Generale down nearly 7 per cent, and BNP Paribas nearly 9 per cent.
In Asia, Tokyo’s Nikkei 225 slumped 2.3 per cent to 8,493.24, well below the close of 8,605.15 on March 15 in the aftermath of the country’s destructive earthquake and tsunami, despite a government survey showing an improvement in Japanese business confidence.
Hong Kong’s Hang Seng index fell 4.9 per cent, while Australia’s S&P ASX 200 fell 2.12 per cent.
Benchmark oil for November delivery fell 69 cents to $78.51 per barrel on the New York Mercantile Exchange, the lowest since September 2010.
The price of Crude has peaked near $114 a barrel in May of this year but has since fallen 31 per cent as economic worries have hit oil prices.
Meanwhile, inflation across the 17-nation eurozone jumped to three per cent in September.
The increase was a surprise that makes it less likely the European Central Bank would cut interest rates this week to head off a possible recession.
Eurozone finance ministers are set to meet on Monday to discuss the latest installment in a rescue bailout for Greece amid growing international concern that Europe is too divided to solve the Greek problem, or deal with growing problems in the far larger Italian economy.aljazeera, Voice of a Nation