As the debt crisis in Spain continues to cause widespread alarm, share prices have been falling and the value of the euro against the US dollar fell at 16.00 today to a new bid price low of 1.2050.
It was just yesterday – but seems much longer ago – that we reported it had gone below the 1.21 mark. Already it is half way to falling below 1.20.
The situation with, as in our report yesterday, the seriously indebted Spanish regional governments is mirrored in increasing and hardly unanticipated difficulties in Italy, with ten of its cities – including Naples, Palermo. Alessandria and Reggio Calabria – said to be on the edge of bankruptcy.
The immediate consequence can be seen in the behaviour of the markets with the major stock exchanges down:
At 18.00 (24th July) this was the positions:
- FTSE Down -34.64 (-0.62%)
- DAX Down -28.92 (-0.45%)
- CAC Down -26.85 (-0.87%)
- DOW JONES Down -140.29 (-1.10%)
- NASDAQ Down -24.37 (-0.84%)