World Markets and Currencies: The Picture is ChangingWednesday, May 26, 2010 1:05
The picture on US markets looked like this: New York ended flat on Tuesday, the Dow Jones went 0.2% down.
As for European markets, due to eurzone problems, they closed lower. The FTSE was down by 2.54%, Germany’s Dax fell by 2.34%.
Asian markets also saw a decrease. Due to the events between North and South Korea, Asian stocks were affected.
There are some concerns about economic stability in Spain. According to the International Monetary Fund, the country needs radical reforms in the economic sector.
A few words about the main currencies. The dollar became stronger, while the euro and the pound weakened against the dollar. The euro fell by 0.8% against the dollar. The single European currency dropped sharply, about a fifth against the American currency.
According to the European Union Commissioner Olli Rhen, countries of the European Union have to implement radical reforms in order to boost long-term growth. The governments have to get on with the job in order not to lose the whole decade.
As for the character of the reforms, they have to depend on the country, but the governments have to work in the national interests and to open up their national markets.
Unfortunately, there are countries, like Greece and Italy, which have regularly neglected calls to liberalize their markets.