Xinhua
25 May 2023, 03:00 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 Johannesburg Life 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 Johannesburg Life.
More InformationATLANTA, Georgia: The United States is facing its worst measles outbreak in more than three decades, with 1,288 confirmed cases so...
In the past month alone, 23 Israeli soldiers have been killed in Gaza—three more than the number of remaining living hostages held...
LONDON, U.K.: At least 13 people are believed to have taken their own lives as a result of the U.K.'s Post Office scandal, in which...
WASHINGTON, D.C.: Travelers at U.S. airports will no longer need to remove their shoes during security screenings, Department of Homeland...
WASHINGTON, D.C.: An elaborate impersonation scheme involving artificial intelligence targeted senior U.S. and foreign officials in...
SLUBICE, Poland: Poland reinstated border controls with Germany and Lithuania on July 7, following Germany's earlier reintroduction...
Kingston [Jamaica], July 12 (ANI): Australia's Test captain Pat Cummins is set to sit out next month's white-ball series against South...
New Delhi [India], July 12 (ANI): International Cricket Council (ICC) chairman Jay Shah lauded Italy and the Netherlands after both...
(250711) -- EL FASHER (SUDAN), July 11, 2025 (Xinhua) -- A woman prepares food for children at a displacement camp in El Fasher, North...
New Delhi [India], July 12 (ANI): The Ministry of External Affairs (MEA) has released its annual report for 2024, highlighting India's...
(Photo credit: Bill Streicher-Imagn Images) Australia's Cameron Smith and England's Lee Westwood were in a five-way tie for the lead...
The Hague [Netherlands], July 11 (ANI): Italy made history after securing qualification for the 2026 Men's T20 World Cup in India and...