Markets across the world were eviscerated as concerns about the financial future of Europe grew. The EU summit may prove to the a battle that will produce further bitterness between the leaders of France and Germany. President Hollande favors eurozone bonds that would rely heavily on Germany’s economy and debt rating. Chancellor Angela Merkel has said the German balance sheet will be used for no such reasons. She also claims that the treaty that formed the alliance prevents such measures.
In Asia, the Nikkei fell 2% to 8,557. The Hang Seng was off 1.2% to 18,818.
Across Europe, markets opened down well over 1%. The FTSE was down just more than 1% to 5,348. The DAX fell 1% to 6,371.
Douglas A. McIntyre