UK, France and Germany witnessed the worst quarter in the last 9 years

by khalid on 02/10/2011 · 0 comments

The European Economy has been hit severely and has performed the worst in the last 9 years. The markets around Europe had been among the red with the news of a recession in the euro zone besides their increasing debt crisis in the region.

Another reason for the US hitting recession again has also impacted the markets in a big way. This quarter a steep sell of was witnessed in the European markets which has wiped out about $1.2 trillion.

However the German and US government bonds were in demand among the investors with a view to shelter their assets against the losses possible in the equity markets. Until and unless the European politicians come up with a decisive plan for meeting up the debt crisis, although the stock valuations may seem attractive investors will be very careful while investing.  Among the worst performers among the European markets was Germany’s DAX that had outperformed among all in region.

The French CAC 40 and Spain’s IBEX 35 has posted a deep three month fall which had never been seen before in the past 9 years. These two markets and Belgium have put on a short selling ban in the financial stocks from August 12 sensing the weaking equity markets. Since the last quarter till the end of this quarter the CAC 40 has fell by 25.1% where the French bank Societe Generale has lost 51% during the quarter. This is the biggest quarterly loss ever.

Among the others IBEX 35 and Italy’s FTSE MIN have dipped by 17.5% and 26.5% respectively. Similarly Britain’s FTSE was down by 13.7% being among the better looking markets when compared to the others in the continent.

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