以下新聞轉載自China Post
European stocks plunge 5 percent
LONDON -- European stocks plunged by about 5 percent in mid afternoon trading on Monday, hit by acute tension over the risk of recession in leading economies and over eurozone debt.Bonds issued by Greece and Italy fell, and the cost of insuring against default by Italy and France, as indicated by the market for credit default swap (CDS) instruments, rose sharply.
German stocks were down by nearly 6 percent, while in London, the FTSE index fell by 3.06 percent to 5,129.97 points.
The euro fell below 1.41 U.S. dollars. The price of gold jumped back above US$1,900 an ounce on demand for a safe haven
The head of the European Central Bank (ECB) Jean-Claude Trichet warned of an immediate and imperative need for a second debt rescue for Greece, and for tightened discipline in the management of eurozone economies.
He also spoke of an eventual “confederal” disciplined management of eurozone national finances.
And the head of the International Monetary Fund (IMF) Christine Lagarde repeated her warning that banks in Europe need extra capital to withstand any contagion from the eurozone debt crisis.
The move against stocks was exacerbated by a decision by U.S. authorities to take legal action against 17 international banks for trading in the securitized mortgage products at the heart of the 2008 financial crisis, traders said.
Bank shares fell heavily in Europe.
The Frankfurt stock market was showing a fall of 5.55 percent from the closing level on Friday to 5,230.84 points on the DAX index with Deutsche Bank shares down 9.59 percent.
In Paris the CAC 40 index was down 5.1 percent to 2,987.96 points and in Milan, the FTSE Mib index was showing a fall of 5.30 percent to 14,263 points.
Asian stocks also fell sharply, with the Tokyo market shedding 1.86 percent.
The U.S. legal moves are aimed at recouping billions of dollars lost in the financial crisis.
ECB data showed that eurozone banks have deposited record amounts of overnight funds with it, a signal of reluctance by banks to lend to each other.
“The banking sector continues to remain under pressure today as it underperforms across Europe,” said Manoj Ladwa, senior trader at ETX Capital.
“The chances of a near-term recovery remain slim as eurozone debt concerns, structural reform and a lawsuit for allegedly mis-selling mortgage debt all weigh heavy on the sector,” he added.
“The U.S. decided to drop a bombshell on the banking sector ahead of their extended weekend by announcing a US$200 billion (141-billion-euro) lawsuit across the whole industry for the miss selling of mortgage backed assets, the dreaded subprime loans,” said Simon Denham, head of London-based trading group Capital Spreads.
U.S. firms targeted in the suits included Bank of America, Goldman Sachs, Citigroup, JPMorgan Chase, Morgan Stanley, General Electric, Ally Financial and First Horizon.
The foreign banks were Deutsche Bank, HSBC, Credit Suisse, Barclays, Nomura, Royal Bank of Scotland and Societe Generale.
Traders also continued to digest weak U.S. data from late last week.
The jobs data for August were the worst since September 2010, when the economy shed more than twice the number of jobs it created. The pace of job growth remains far below the numbers needed to reduce the high unemployment rate.
plunge verb/noun 急降
acute adj. 劇烈的
tension noun 緊張情勢
recession noun (經濟)衰退
eurozon noun 歐元區
bond noun 債券;公債
default noun 違約
credit default swap ph. 信用違約交換(移轉信用風險的衍生性金融商品)instrument noun 工具;手段
imperative adj. 緊急的;極重要的
discipline noun 紀律;懲戒
confederal noun
International Monetary Fund ph. 國際貨幣基金會
withstand verb 抵擋; 反抗
contagion noun 感染;壞影響
exacerbate verb 使惡化;使發怒
authorities noun 官方;當局
securitized adj 證券化的
mortgage noun 抵押
shed verb 瀉
recoup verb 收回;償還
overnight fund ph. 過夜待付基金
reluctance noun 勉強;不情願
near-term ph. 近期
reform verb 改良;重組
lawsuit noun 訴訟(非刑事)
bombshell noun 炸彈;突發事件
dreaded adj 令人畏懼的
subprime loans ph. 次級貸款
pace noun 一步;牛步
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