05 February 2010

Stocks Fall in EU and USA

On Thursday (yesterday), stock markets in both the US and Europe experienced sharp falls. Why?

Well, for Wall Street the downer came thanks to unemployment claims figures which were released. They were worse than expected - making investors jumpy about what is going on with the economic recovery. Will it ever gain stability?

In Europe, there were renewed fears about Portugal. Is it going to be the next Greece? Government bonds there fell in demand - and as investors are already nervous about the situation and whether EU stability will be weighed down by Portugal, shares took a dive.

One or two economists reacted to Wall Street's drop by saying that investors had been "spoiled" by gains since March last year and that the market still needs to finish correcting.

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