European market fell

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European market fell

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Stocks in Europe fell Thursday as investors await more details how EU tackle their debt crisis.

13 October,2011 06:13 pm

Stocks have been buoyed this week as eurozone officials finally indicated they are willing to take decisive action such as larger write-downs on Greek debt and a push to make banks strengthen their capital against resulting losses.New steps to quell the debt crisis are seen as positive for stocks because a disorderly default by Greece and resulting losses to banks on its government bonds could cause a wider banking crisis, choking off credit to the wider economy and causing a recession. But key details are lacking as officials rush to put their plans together ahead of a European summit 10 days from now and a Group of 20 summit of rich and developing countries in early November.“The period of good feelings may well be drawing to a close,” said Stephen Lewis at Monument Securities in London. This is because the tight timetable that the November G20 meeting imposes will leave little more time to settle intractable problems. Devising a ‘roadmap’, that is, an analysis of what needs to be done, is the easy part. To come up with viable measures will be more difficult.”Adding to pressure on stocks was news that China’s trade surplus narrowed for a second straight month in September, suggesting further cooling in the Chinese and global economies. The countrys trade surplus fell to $17.8 billion in August, well below Julys 30-month high of $31.5 billion, largely on the back of lower export growth a sign that the stalling global economic recovery is could weigh on Chinas elevated economic growth.In Europe, Britain’s FTSE 100 fell 0.9 percent to 5,398, while Germany’s DAX slipped 1.5 percent to 5907. France’s CAC 40 was 0.8 percent lower at 5,398. The euro has also suffered a reverse after enjoying big gains recently on the back of hopes of a comprehensive solution to Europes debt crisis it was trading 0.4 percent lower at $1.3731.Wall Street was set to ease at the open with Dow futures up down 0.3 percent at 11,388 and the broader Standard & Poors pointing 0.5 percent lower at 1,193.Australia’s S&P/ASX 200 gained 1 percent to 4,244.50. The Shanghai Composite Index advanced 0.8 percent to 2,438.79.