Greek debt, political turmoil hits world stocks

Business

Greek debt, political turmoil hits world stocks

Close

World stocks hit a three-month low on Thursday.

16 June,2011 04:58 pm

The euro tumbled and top-rated government bonds rose as investors began to price in a possibility of disorderly default in Greek sovereign debt.Euro zone and banking sources said that Germany wants to delay the deadline for a second Greek aid package to September, reflecting disagreement within Europe on how to involve the private sector in a deal without triggering a default. Political turmoil within Greece is also intensifying fears. Parliamentary resignations threw the Greek Prime Ministers plan to reshuffle his cabinet and seek support for an austerity package into disarray. The euro fell as low as $1.4071.“The Chinese economy has undoubtedly slowed as a result of the monetary tightening but the trough in leading indicators suggests that the pace of slowdown is moderating, said Gerard Lane, equity strategist at Shore Capital.US crude oil surged to 0.4 percent to $95.21 a barrel.