The continuing impasse over Greece's €130 billion (US$170 billion) rescue package is hurting investor sentiment Thursday, causing global markets to slide and booting the euro currency below the US$1.30 level.
Adding to the discomfort, Moody's Investors Service placed the ratings of Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., and three other global financial institutions on notice possible downgrades are forthcoming. On Wednesday, Moody's said it's also reviewing J.P. Morgan Chase & Co., Morgan Stanley and the Royal Bank of Canada as part of a separate ratings action that includes more than 100 financial institutions worldwide.
The benchmark Stoxx Europe 600 Index was 0.9 per cent lower at 261.84. London's FTSE 100 and Paris's CAC-40 also fell 0.9 per cent, to 5841 and 3360.88, respectively, while Frankfurt's DAX was 1.3 per cent lower at 6671.30. The euro currency is presently fetching US$1.299.
In Asia, stock markets retreated from yesterday's rally due to Eurozone fears. The Australian S&P/ASX 200 Index dropped 1.7 per cent to 4181.90, South Korea's Kospi fell 1.4 per cent to 1997.45, and Hong Kong's Hang Seng Index lost 0.4 per cent to 21277.28. The Shanghai Composite Index also declined 0.4 per cent to 2356.86 and Japan's Nikkei Stock Average declined 0.2 per cent to 9238.10.
On Wall Street, U.S. futures are poised for a lower opening. Futures on the Dow Jones Industrial Average fell 26 points to 12737. S&P 500 Index futures declined 4.5 points to 1337.80, while Nasdaq 100 futures lost 2.3 points to 2555.25. More corporate earnings reports are due Thursday including those from the likes of Molson Coors Brewing and graphics chipmaker Nvidia. Investors will also be eyeing the U.S. jobless claims data followed by January housing starts data. Also, Federal Reserve chairman Ben Bernanke is slated to speak at a community-banking event today.
Closer to home, Canada's benchmark S&P/TSX Composite Index was up 7.56 points, or 0.06 per cent, to close at 12,362.03 on Wednesday. The TSX Venture Exchange gained 3.55 points to 1,633.58. The Canadian dollar is trading at 100.09¢ US.
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