Market jitters knock Euro by Barbora Misakova

The whole discussion about markets, increasing and decreasing indexes is out of my understanding. Actually it is not even interesting for me. Looking all the time at numbers changing constantly – is that really so significant to follow it. Of course, we are living now in the era of big economic changes, the economy crises, budget deficits and cuts, mortgages amounting to gigantic prices – that is all effecting the way we live. I just cannot understand why it is so important to check it day by day. Shortly before the market closure many American but also European indexes climbed to incredible heights. The Dow Jones Industrial Average, Nasdaq, Standard & Poor̵! 7;s 500 index and also indexes in London, Paris, Frankfurt or Milan, Madrid and Lisbon increased significantly. But now not only Euro dropped back to below $1.27, but also stocks retreated and European shares fell 2 percent. Also Wall Street had to face a trim of Monday’s stellar gains. As Jim Wood-Smith, head of research at Williams de Broe said: “The European Union was never going to be able to give the markets a single knock-out blow. Markets have lost confidence in the European Union and the euro. Until that confidence comes back we are in for a volatile period.” Even the Greece has no reason for celebration. As head of base metals at London’s RBC Capital Markets, Alex Heath said, markets were being a bit cynical and rightly as “there is an awful lot of hard work and belt-tightening to be done. The markets have factored in a recovery that hasn’t been achieved yet.”

related story (sgx17265): http://www.france24.com/en/20100511-markets-stocks-dip-doubt...

by Barbora Misakova for Cantell TV (http://cantell.tv)

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