Get breaking news alerts via email

Click here to manage your alerts
A currency trader reacts as he works at the foreign exchange dealing room of the Korea Exchange Bank headquarters in Seoul, South Korea, Friday, July 11, 2014. Asian stock markets were muted Friday, following the lead of Wall Street traders spooked by worries about the soundness of a bank in Portugal that raised the specter of more financial turmoil in Europe. South Korea's benchmark Kospi dropped 0.70 percent at 1,988.74.( AP Photo/Ahn Young-joon).
European stocks rebound from Portugal bank scare
Debt crisis » Investors’ immediate reaction suggests they don’t fear regional “contagion.”
First Published Jul 11 2014 09:37 am • Last Updated Jul 11 2014 09:37 am

Mumbai, India • European stock markets rebounded Friday after slumping on worries about the soundness of a bank in Portugal, while trading in Asia was muted over the specter of more financial turmoil in Europe.

Markets worldwide had fallen Thursday because of jitters about the financial stability of Portugal’s Espirito Santo International, which reportedly missed a debt payment this week and was cited for accounting irregularities, echoing issues that sparked Europe’s debt crisis four years ago.

Join the Discussion
Post a Comment

Germany’s DAX was up 0.1 percent to 9,666.12 and the CAC-40 in France rose 0.5 percent to 4,320.68. The FTSE 100 in London gained 0.3 percent to 6,688.79.

The euro rose slightly to $1.3609, indicating that the Portugal scare had not rattled confidence in Europe for very long. The dollar inched up to 101.33 yen from 101.30 yen late Thursday.

"I suppose the question on investors’ minds is whether this latest Portugal banking crisis will lead to contagion in the region," said IG strategist Stan Shamu said in a market commentary. "Judging by the reaction in the single currency, then possibly the market doesn’t quite feel this is the case."

Futures augured gains on Wall Street. Dow futures added 0.2 percent to 16,883 and S&P 500 futures rose 0.2 percent to 1,962.40.

Still, most Asian stock markets were dragged down earlier Friday, either in reaction to the Portugal news or by local factors.

Japan’s Nikkei 225 slipped 0.3 percent to 15,164.04 and South Korea’s Kospi fell 0.7 percent to 1,988.74.

Hong Kong’s Hang Seng closed nearly flat at 23,233.45 while Taiwan’s Taiex shed 0.7 percent to 9,495.84. Australia and China were exceptions, with Sydney’s S&P/ASX 200 adding 0.4 percent to 5,486.80 and the Shanghai Composite up 0.4 percent to 2,046.96.

India’s Sensex was down 1.3 percent at 25,024.35 a day after the new government’s maiden budget that some analysts criticized as insufficiently bold.

story continues below
story continues below

In energy trading, benchmark U.S. crude for August delivery was down 27 cents at $102.66 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained 64 cents to $102.93 on Thursday.

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.