The frail economic statistics on the continent of Europe highlighted most of the underlying problems faced by Eurozone at present is still set for a go on the London market for a Diamond Jubilee hangover.
The FTSE 100 index which has been recently closed because of the planned royal celebrations is predicted to open 25 points lower when it will resume again tomorrow as fears grip the rest of Europe. The latest slur in the region’s confidence came today as the purchasing managers survey revealed the fourth repeated month decrease in the output of the Eurozone’s private sector this May. Chief UK European economist at HIS Global Insight, Howard Archer mentioned that the Eurozone is constantly bombarded with major headwinds, particularly the increased fiscal reduction in many nations, compressed consumer purchasing influence and the alarming rise in unemployment.
Meanwhile a private meeting between central bank governors and finance ministers coming from seven of the world’s largest economies will soon commence to talk about measures to safeguard the rest of the thriving global economy. US officials have allegedly called for more action to boost the European banking system in the next two weeks before a meeting of the G20 in Los Cabos, Mexico. London’s primary shares index ended last week on a disappointing low, losing more than 60 points following a bleak set of US job data was added to the vague global point of view.
World markets have already endured regular setbacks in recent weeks along with fears that Greece will drop out of the Eurozone and potentially cause more problems in the struggling currency coalition. The debt-ridden country which is miserably in its fifth year of recession faces a critical election this June which will decide whether Greece will stay in the Eurozone and take more punishment from near impossible austerity measures.
Meanwhile, there are new fears surrounding the health of Spain’s banking sector after its largest lender, Bankia would need 19 billion Euros in order to bail itself out of its incurred debt. The most recent assessment of the Eurozone highlights the mounting odds the region will need to face as more and more political leaders are pushed to rolling out harsh austerity measures at this time of stress economic growth.