Global Equities Slump Continues
18 May 2012 (PLANSPONSOREurope.com) – As continued woes in the Eurozone focus on the Spanish banking system and Greek political uncertainty, disappointing US economic data has been revealed as equities continue to slump across the globe.
The FTSE All-World equity index is down 0.9%, having fallen almost continually in May dropping 9% in total so far this month on the back of fears that the global economy is too fragile to survive any kind of collapse in the Eurozone.
On the back of these concerns Moody’s has downgraded 16 Spanish banks and with fresh elections due in Greece in June it looks more and more likely that Greece will have to leave the Euro with reports across the Greek press speculating that depositors have been taking large sums out of Greek banks since the failure of the political parties to form a coalition government.
In the UK London’s benchmark index, the FTSE 100, fell a further 1.1% to 5,280.04 on Friday. This week alone the benchmark has so far seen a 5.3% fall. The FTSE 250 was 1% weaker overall on Friday at 10,485.0.
The equity woes are also not just restricted to Eurozone companies. The FTSE Asia Pacific index has been hit by a drop of 2.5% and the US markets have suffered losses for the fifth consecutive period, falling to their lowest levels since January.