Brokers are bargaining at Portugalâ„¢s stock market. (file photo)
European markets have experienced a sharp drop as news of political turmoil in Egypt and Portugal continues to raise speculation and fear in the global economy.
On Wednesday, the eurozoneâ„¢s bellwether Euro Stoxx 50 slumped 1.3 percent, over news of the ouster of Egyptian President Mohamed Morsi and a risk of a government collapse in Portugal.
Portugalâ„¢s stock index fell 5 percent, sending shockwaves across other major European markets including Londonâ„¢s FTSE 100 index – which experienced a 1.2 percent drop.
The German DAX and French CAC both plummeted 1.5 percent, and Spainâ„¢s Lisbon PSI-20 index of leading shares fell 5.31 percent, in a sign that the eurozone crisis is far from finished.
Markets in Europe were rocked after Portugal’s Foreign Minister Paulo Portas stepped down on Tuesday, a day after Finance Minister Vitor Gaspar quit.
Portugal is witnessing severe budget conditions which have been imposed on the country by a European Union/International Monetary Fund (IMF) bailout.
Meanwhile, experts also said Egyptâ„¢s political turmoil threatened a new phase in the eurozone crisis.
The Egyptian presidentâ„¢s ouster on Wednesday came days after massive anti-government protests had plunged the country into chaos and raised fears in global energy markets.
GMA/KA
Republished with permission from: Press TV