Panic at the European stock exchanges
Tensions in Europe are growing, this time Italy appears to be in the center of events.
All the recent political uncertainty and the expectations that the Prime Minister will resign the country, initiated a rise in the yield investors demanded for the Italian government securities and overall decline in stock indices.
For the first time since the introduction of the euro in 1999, the yields on five-year Italian bonds rose above 7% . It rose by 27 basis points up to 7.14% annually.
Insurance against non-payment for the Italian bonds also rose to new record high levels.
European stock markets were affected, as well as the euro.
The single currency showed a drastic decline against the dollar down to levels of 1.3660. This was the lowest value of the euro since the beginning of November.
The price of the euro fell strongly against the Japanese yen too, having been traded at levels of 106.18 yen.
Overall, the dollar price rose against almost all major currencies except the yen, which performed extremely well at times when investors are looking for safety and security.
The index tracking the performance of the 50 largest European companies – Euro Stoxx 50, lost 2.6% of its value after the indices Germany and France registered 2% decrease.
The index, tracking the performance of the 40 most liquid positions in Italy – FTSE MIB Index, lost 4.3% of its value.
Regional indices also show some serious losses. Hungary’s BUX lost 1.4%, while the Polish WIG 20 registered loss of 1.2%. The Russian indices RTS lost nearly 4%. Surprisingly, the Romanian indices showed significantly less decline where the leading among them lost 0.2% of its value.
Tensions in Europe are growing, this time Italy appears to be in the center of events.
All the recent political uncertainty and the expectations that the Prime Minister will resign the country, initiated a rise in the yield investors demanded for the Italian government securities and overall decline in stock indices.
For the first time since the introduction of the euro in 1999, the yields on five-year Italian bonds rose above 7% . It rose by 27 basis points up to 7.14% annually.
Insurance against non-payment for the Italian bonds also rose to new record high levels.
European stock markets were affected, as well as the euro.
The single currency showed a drastic decline against the dollar down to levels of 1.3660. This was the lowest value of the euro since the beginning of November.
The price of the euro fell strongly against the Japanese yen too, having been traded at levels of 106.18 yen.
Overall, the dollar price rose against almost all major currencies except the yen, which performed extremely well at times when investors are looking for safety and security.
The index tracking the performance of the 50 largest European companies – Euro Stoxx 50, lost 2.6% of its value after the indices Germany and France registered 2% decrease.
The index, tracking the performance of the 40 most liquid positions in Italy – FTSE MIB Index, lost 4.3% of its value.
Regional indices also show some serious losses. Hungary’s BUX lost 1.4%, while the Polish WIG 20 registered loss of 1.2%. The Russian indices RTS lost nearly 4%. Surprisingly, the Romanian indices showed significantly less decline where the leading among them lost 0.2% of its value.
