European stocks plunge on debt concerns

NEW YORK (CNNMoney) — European stocks fell sharply on Monday on renewed fears of a eurozone debt crisis and concerns about the global economy.

London’s FTSE 100 (UKX) index finished its trading session down 3.2%, while France’s CAC 40 (CAC40) dropped 4%. In Germany, the DAX (DAX) shed 5.3%.

The move followed more moderate drops in Asia’s stock markets. Japan’s Nikkei 225 (N225) index finished Monday trading down 1.9%, while Hong Kong’s Hang Seng (HSI) index shed 3% for the day.

“Europe’s faltering management of its crisis is starting to blur the line between a banking crisis and a euro crisis, resulting in a new vote of no confidence from the markets,” Lena Komileva, an analyst for Brown Brothers Harriman in London, wrote Monday in a note to clients.

“Political brinkmanship” has put the possibility of a “disorderly” currency crisis and a break-up of the euro back on the table, she said.

“There no resolution to the situation in Europe,” investment manager Randy Warren, who manages $75 million in assets for Warren Financial Services, said last week of the uncertainty in Europe. “The waves of fear just recede for a while.”

U.S. stock markets are closed Monday for the Labor Day holiday.

On Friday, U.S. stocks ended sharply lower following a government report showing that no net new jobs were created in August — sparking concerns that the U.S. may be headed for another recession. The Dow Jones industrial average shed 2.2% on Friday, while the SP 500 index lost 2.5% and the tech-heavy Nasdaq dropped 2.6%. To top of page

Article source: http://rss.cnn.com/~r/rss/money_topstories/~3/dm9mI1lYSFw/index.htm

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