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Meltdown worries send shares sliding on Monday


Meltdown worries send shares sliding on Monday


The world’s financial markets remain extremely volatile with investors sending a message to politicians worldwide that they are not doing enough to address the problems threatening the global economic recovery.

The downgrade of the United States’ credit rating on Friday by Standard & Poor’s reignited fears the world’s biggest economy could slip into recession again and there was a big sell off of European shares by the early afternoon on Monday.

However the European Central Bank’s announcement that it was buying Spanish and Italian government bonds to try to stop the euro zone debt crisis spreading did limit the damage in Madrid and Milan.

Senior Trader Will Hedden with IG Index in London sees no end in sight to the turmoil: “We’ve definitely got a long way to go yet, we’ve still got problems in the euro zone. The US issues definitely aren’t over, and they’re obviously coming up to an election, so that’s going to play on their markets as well, so I don’t think we should be jumping to going on holidays just yet.’‘

Earlier share prices in Asia slumped with Tokyo and Hong Kong closing the Monday session down two percent – having both been much lower.

Investors seeking a safe place for their money piled into gold which hit a new record above 1,700 dollars an ounce. The dollar is down, the euro is volatile and oil fell more than three dollars a barrel on concern over a slowdown in economic growth.

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