Share

Global stocks lose steam after rally

New York - US and European shares were little changed and the euro eased on Friday after a strong rally in the prior session and a disappointing Italian debt auction that reflected shaky investor confidence in Europe despite a rescue deal.

US stocks spent most of the morning in negative territory boosting safe haven US Treasuries, while oil prices declined more than 1% on scepticism over the long-awaited debt deal and whether the region can contain the crippling crisis.

Italy’s 10-year borrowing costs topped 6% for the first time since the launch of the euro after a debt auction Friday, underscoring the country’s vulnerability at the centre of the debt crisis.

It was the first eurozone bond auction after policymakers struck a long-awaited agreement on Thursday to slash Greece’s debt burden and strengthen the European Financial Stability Facility (EFSF), the region’s rescue fund.

Adding to concerns, the head of Europe’s bailout fund played down hopes of a quick deal with China to throw its support behind efforts to resolve the crisis. But he said he expected Beijing to continue to buy bonds issued by the rescue fund.

“I think we have a long way to go with this (European debt) mess. I still see huge risks,”  said Stanley JG Crouch, who oversees $2bn as the chief investment officer of Aegis Capital in New York.

Wall St stalls

US stocks barely budged after a powerful rally on Thursday that propelled the S&P to close above its 200-day moving average for the first time since August.

Oil, gold and copper slipped on Friday on doubts about the details of a deal to tackle Europe’s debt crisis, but most commodities were firmly on track for weekly gains.

Copper and US crude oil were set for their biggest weekly gains in nearly three years and eight months respectively, after European leaders hammered out a debt deal this week and data on Thursday showed the US economy was expanding.



We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.97
-0.3%
Rand - Pound
23.97
-0.3%
Rand - Euro
20.48
-0.1%
Rand - Aus dollar
12.36
-0.1%
Rand - Yen
0.13
-0.4%
Platinum
907.94
+1.2%
Palladium
1,014.30
+1.3%
Gold
2,215.39
+0.9%
Silver
24.91
+1.1%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders