US MARKET DROPS ON EURO DEBT CONCERN
Date: 11/04/2012
The US markets had their worst day of the year on Tuesday, extending the longest slump for the Standard & Poor's 500 Index since November, as a surge in Spanish and Italian bond yields fueled concern that Europe's debt crisis is worsening. Also, low expectations heading into earnings season are pressuring US markets. In Europe, the yields on Spanish and Italian government bonds continued to rise as financial markets in Europe reopened after a four-day Easter break. Besides, Spanish Prime Minister Mariano Rajoy unexpectedly announced a 10 billion-euro package of budget cuts in education and health, less than two weeks after unveiling the most austere budget in more than three decades. Rajoy is targeting basic public services for the first time since his election in December in a bid to convince investors that he can bring order to the nation's finances. Bank of Spain Governor Miguel Angel Fernandez Ordonez stated that the nation's lenders may need additional capital if the economy weakens more than expected.
Moreover, China reported a trade surplus for March, however, imports grew less than expected, feeding concerns of a domestic slowdown. China's imports grew less than expected in March, highlighting concerns of an internal slowdown that could point to weakening demand, customs-department data showed.
The Dow Jones Industrial Average closed lower by 213.66 points, or 1.65 percent, at 12,715.90. The S&P 500 lost 23.61 points, or 1.71 percent, at 1,358.59, while the Nasdaq was down by 55.86 points, or 1.83 percent, at 2,991.22.
Moreover, China reported a trade surplus for March, however, imports grew less than expected, feeding concerns of a domestic slowdown. China's imports grew less than expected in March, highlighting concerns of an internal slowdown that could point to weakening demand, customs-department data showed.
The Dow Jones Industrial Average closed lower by 213.66 points, or 1.65 percent, at 12,715.90. The S&P 500 lost 23.61 points, or 1.71 percent, at 1,358.59, while the Nasdaq was down by 55.86 points, or 1.83 percent, at 2,991.22.
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