Xinhua
25 May 2023, 07:30 GMT+10
Italian media reports estimated that companies on European stock exchanges lost a combined 227 billion euros (244 billion U.S. dollars) in value during trading on Wednesday alone.
ROME, May 24 (Xinhua) -- Fears of a potential United States government loan default weighed heavily on European Union (EU) financial markets on Wednesday, with major stock exchanges down across the continent, and the euro flat against the U.S. dollar and other currencies.
Italian media reports estimated that companies on European stock exchanges lost a combined 227 billion euros (244 billion U.S. dollars) in value during trading on Wednesday alone.
Meanwhile, negotiations continued in Washington over whether or not to raise the U.S. government's debt ceiling. If no agreement is reached, the U.S. Treasury will run out of cash in early June, sparking a government default on its debt obligations.
Economists warn that such a development would have profound economic consequences around the globe -- including in Europe, where central banks and private businesses are widely exposed to U.S. government bonds.
Stocks finished broadly lower on Wednesday: the DAX blue-chip index on Germany's Frankfurt Stock Exchange was down 1.9 percent; in Paris, the CAC-40 index lost 1.7 percent; the general index in Madrid surrendered 1.1 percent; and the AEX index in Amsterdam slipped 1.6 percent.
One of the biggest losers was the Italian Stock Exchange in Milan, which retreated 2.4 percent. Banks and large multinationals with exposure to the U.S. economy, such as tire maker Pirelli and aerospace giant Leonardo, suffered the most.
Outside of Europe, stocks were also lower in the United States and Asia.
However, the euro currency rallied at the end of Wednesday's trading session to finish about even compared to Tuesday's close against the U.S. dollar and other currencies.
Recent data showing stubbornly high inflation in the United Kingdom also contributed to Wednesday's stock losses.
A recent uptick in COVID-19 infections globally, as well as predictions that the conflict between Russia and Ukraine is set to intensify, have also weighed on markets in Europe and elsewhere.
The Eurozone's economy grew by 0.1 percent in the first quarter of 2023 compared to the previous quarter, a weaker than expected growth rate, data from Eurostat showed.
Get a daily dose of Shanghai Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Shanghai Sun.
More InformationYANGON, Myanmar - A regime court sentenced to death five people detained for their alleged involvement in a deadly August ...
HARTFORD, Connecticut: Following a state Senate debate and vote to approve Connecticut's most comprehensive gun legislation since the laws put ...
SPENCER, Massachusetts: Spencer, Massachusetts Fire Chief Robert Parsons has said that a June 2 fire that burned down a 160-year-old ...
MOSCOW, Russia: Journalists from countries that are "unfriendly" to Russia will be banned from covering this year's St. Petersburg International ...
SAN FRANCISCO, California: Landowners in California participated this week in a class organized by the El Dorado Amador Prescribed Burn ...
RAMALLAH, Wet Bank - A two-and-a-half-year-old Palestinian boy shot in the head by Israeli troops has died in hospitalThe boy, ...
WASHINGTON D.C.: The Biden administration is expected to approve a deal allowing General Electric to assemble jet engines in India ...
CHARLESTON, South Carolina: During a media tour this week at Boeing's facilities in Charleston, South Carolina, company CEO Dave Calhoun ...
BEIJING, China: On his return to China after a three year absence, which is his company's largest production hub, Tesla ...
BusinessWire IndiaKolkata (West Bengal) [India], June 7: Electrosteel Castings Ltd. is a water infrastructure Company and pipeline solutions provider, pioneering ...
PRNewswireManila [Philippines]/Pune (Maharashtra) [India], June 7: iMocha, the world's leading skills intelligence and skills assessment platform, today announced its partnership ...
Udhampur (Jammu and Kashmir) [India], June 7 (ANI): Deputy Commissioner, Udhampur Sachin Kumar Vaishya on Tuesday convened a meeting with ...