Growth worry hits Europe, US amid Japan rebound
European and US shares fell yesterday as the nuclear crisis in Japan raised concern
New York/London: European and US shares fell yesterday as the nuclear crisis in Japan raised concern of slower growth worldwide, though Japanese stocks rebounded as some investors saw value after a steep sell-off.
Western markets also struggled with trouble in Bahrain and concerns about Eurozone debt.
Wall Street opened lower as the price of oil climbed. Brent crude rose 2 per cent to $110.65 a barrel after Bahraini security forces cracked down on protesters, with fighting in Libya simmering in the background.
"There is a perfect storm of uncertainty right now in terms of global growth, and markets are taking that into account," said Oliver Pursche, president at Gary Goldberg Financial Services in Suffern, New York.
Debt worries
Eurozone debt worries also surfaced, pressuring the euro. Portugal's 12-month borrowing costs rose at a bill auction after a two-notch rating downgrade by Moody's, showing the debt-laden country remains under pressure despite a deal to tackle the debt crisis.
Some sectors of financial markets were readjusting after a worldwide battering of riskier assets following the earthquake, tsunami and nuclear disasters that have hit Japan, the world's third largest economy.
"It is too early to say if we are facing a trend reversal or just an interruption of the negative trend, but at least it is a stabilisation," said Enid Omerovic, analyst at Frankfurt-based Close Brothers Seydler.
MSCI's all-country world stock index was up half a per cent. It fell as much as 4.5 per cent over the past three sessions on the back of a near 20 per cent dive on Japan's Nikkei average.
