Global Stocks Hit by Greece’s Debt & Political Turmoil
Thursday, June 16, 2021 5:42 AM

Stocks in Asia and Europe tumbled Thursday after reports on violent unrest in Libya surfaced amid the country’s deteriorating debt crisis and a disappointing US manufacturing data.

Protest in Greece escalated after Greek Prime Minister George Papandreou announced late Wednesday that he would form a new government Thursday. Protests swept across the capital, sometimes turning violent.

Investors fear mounted due to the political unrest in Greece, as the Greek government seeks a vote of confidence from his fractious Socialist party to try to push through an austerity package and avoid default. Growing concerns over Greece’s debt restructuring and the impact on European banks from possible private sector participation come as evidence mounts that global economic growth momentum is slowing just as the Federal Reserve prepares to end its $600-billion bond buying program.

Asian markets felt the heat as all the stocks markets in the region were trading in red. Singapore’s Straits Times was trading at 3,021.13, down 33.69 points, or 1.10 percent, Hong Kong’s Hang Seng lost 390.66 points, or 1.75 percent to 21,953.11. India’s BSE 30 was trading lower by 110.43 points, or 0.61 percent to 18,0.21.81 and China’s Shanghai Composite Index, had lost 41.01 points, or 1.52 percent to 2,664.42. Japan’s Nikkei 225 was also trading down by 163.04 points or 1.70 percent to close at 9,411.28.

In Europe, the markets open lower as expected. Britain’s FTSE 100 was trading down by 62.46 points, or 1.11 percent to 5,679.09, Germany’s DAX was down 52.941 points, or 0.74 percent to 7,062.17 and France’s CAC 40 was trading at 3,754.10, down 52.75 points, or 1.39 percent on Thursday.

In the currencies market euro lost 0.61 percent to 1.4076 against the US Dollar along with GBP, which was trading lower by 0.43 percent to 1.6107 against the dollar.