Global equity markets completed the full cycle of losses today with the European markets diving for cover in the wake of fresh fears over solvency of Spain deepening with the 10-year bond yield of Spain spiralling over 7.3 per cent.

What began with the US Dow Jones Index that fell by about 120 points over European concerns on Friday was followed by the Asian markets, including India, on Monday and the cycle was completed with the European markets falling sharply in the early hours of trading today.

While UK’s FTSE 100 was down by 76 points at 5,577, the Spanish IBEX crashed by 149 points, Italian FTSE MIB dived by 330 points at 12,737, French CAC fell 51 points to 3,142 and the German DAX declined by 82 points to 6,547.

The tremors of Dow Jones’ Friday fall was reflected in the Asian markets with Nikkei, Straits Times, Hang Seng, Kospi and Taiwan weighted indices all falling sharply.

In India, apart from the global tremors, the continued uncertainty over what stand the ruling alliance partner NCP would take at today’s meeting over its continued partnership in the alliance at the Centre and the Mulayam bouncer at the FDI in retail spooked the Indian markets.

This was further accentuated by the crisis in Europe and the BSE Sensex is trading with a loss of more than 220 points and has dipped below the psychologically crucial 17,000 mark to trade around 16,929 at 1.20 pm.

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