NEW YORK: ARAB NEWS
Saturday 21 July 2012
Last Update 21 July 2012 8:29 am
US stocks fell yesterday as problems in debt-riddled Europe came to a fore.
It marked the end of three days of gains, the first such streak in more than a month.
Google reported higher earnings and rose 3 percent, but that wasn’t enough to make the market forget about Europe.
Earnings reports for some other US companies were marred by reminders of Europe’s troubles and how they are spreading beyond the region’s borders.
Spain was the epicenter of the latest European earthquake.
Protesters took to the streets to voice their disapproval of government spending cuts. And the region of Valencia said it needed help from the central government to pay its bills.
Spain also got official approval from the other euro countries for a bailout for its struggling banks, but that wasn’t enough to calm investors.
The Spanish government’s borrowing costs shot above 7 percent, meaning the country could soon find itself unable to afford to borrow money. Spain’s benchmark stock index plunged 6 percent.
In Italy, Premier Mario Monti said the debt crisis had spread to his country. Italy’s borrowing costs also edged up.
Arab News is not responsible for the view points, opinions and actions expressed by online commenters. Individual posts do not reflect Arab News' points of view or opinion, and abusive content will be removed