Stocks dipped again in the European continent as traders became concerned about Spain, Portugal and Greece’s budget deficit. Bob Parker, vice-chairman of asset management at Credit Suisse, said: “When the EU used the word ‘ambitious’ about Greece’s plans to reduce its budget deficit, many people in the market have interpreted that as meaning it doesn’t have much confidence the programme will be satisfactorily implemented. It has also focused attention on the lack of detail in the Spanish budget proposals and concern about whether Portugal can reduce its deficit. I regret to say I think it will be more of the same for the market, which will fall further in the short term.”
European stocks plummeted the most in seven months amid concern Dubai’s proposal to delay debt payments may trigger the biggest sovereign default since Argentina in 2001.
A big part of the recovery has already been priced in, so equities don’t react to good news anymore, but react to any piece of negative news," said Pierre Sabatier, president and head of strategy at PrimeView in Paris.:rolleyes: