{"id":15747,"date":"2011-11-27T09:12:00","date_gmt":"2011-11-27T09:12:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/volatile-week-for-stocks-as-euro-zone-debt-crisis-worsens\/15743\/"},"modified":"2011-11-27T09:12:00","modified_gmt":"2011-11-27T09:12:00","slug":"volatile-week-for-stocks-as-euro-zone-debt-crisis-worsens","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/volatile-week-for-stocks-as-euro-zone-debt-crisis-worsens\/15747\/","title":{"rendered":"Volatile Week for Stocks as Euro Zone Debt Crisis Worsens"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p><!--Ad Injection mfunc mode ad include code--><br \/>\n<!--mfunc include_once('\/mnt\/Target01\/327806\/www.thestockmarketwatch.com\/web\/content\/stock-market-news\/wp-content\/plugins\/ad-injection\/adshow.php') --><br \/>\n<!--\/mfunc--><\/p>\n<p>Global equity markets tumbled for the week ended November 25 as the debt crisis in the euro zone worsened. Investors\u2019 sentiment was also weighed down by concerns about global economic growth and U.S. deficit impasse. But the focus remained on euro zone throughout the week.<\/p>\n<p><span id=\"more-15747\"><\/span><\/p>\n<p>The crisis in the euro zone has now spread to core economies of France and Belgium. France is under threat of losing its triple-A credit rating. Meanwhile, yields on country\u2019s bond have continued to rise. The political stalemate in Belgium has also been a major concern for market participants. Belgium\u2019s credit rating was downgraded on Friday by Standard &amp; Poor\u2019s by one notch.<\/p>\n<p><!--mfunc adshow_display_ad_file_v2(array('ad_random_1.txt'), array(100), array('align' => 'float right', 'clear' => '', 'margin_top' => '', 'margin_bottom' => '', 'padding_top' => '', 'padding_bottom' => ''), array(), array()) --><\/p>\n<div style=\"float:right;margin-left:5px;\"><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - in News 300 *\/\ngoogle_ad_slot = \"5684630733\";\ngoogle_ad_width = 300;\ngoogle_ad_height = 250;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/div>\n<p><!--\/mfunc--><\/p>\n<p>Portugal and non-euro zone member Hungary also saw their credit ratings downgraded by rating agencies in the latest week. Meanwhile, yields on Italian and Spanish <a href=\"https:\/\/thestockmarketwatch.com\/markets\/bonds\/today.aspx\">bonds<\/a> have continued to rise, with Italian bond yields once again crossing the psychological 7% mark. On Friday, Italy paid an average yield of 6.5% at an auction of 6-year <a href=\"https:\/\/thestockmarketwatch.com\/markets\/bonds\/today.aspx\">bonds<\/a>, which is almost twice the yield it paid at a similar auction in October.<\/p>\n<p>But the biggest surprise in the latest week was Germany\u2019s failed bond auction. Germany, the largest and the strongest euro zone economy, saw lukewarm response to a 10-year bond auction earlier this week. German bonds are seen as safe haven assets and the weak demand in times of turmoil was bit of a surprise.\u00a0 Analysts said that the weak demand may have been due to the fact that yields on German bonds are now too low.<\/p>\n<p>The debt crisis in the euro zone has also started to take a toll on global growth. The data released in euro zone in recent weeks has indicated a looming recession in the region. Meanwhile, manufacturing data released in China this week suggested that the world\u2019s fastest growing major economy is seeing a slowdown. Data released in the U.S. this week also painted a mixed picture of the economy.<\/p>\n<p>Investors are also worried about the deficit impasse in the U.S. A supercommitte that was tasked with cutting the U.S. budget deficit failed to reach an agreement before the November 23 deadline. The failed agreement triggered automatic spending cuts of $1.2 trillion over ten years, starting in January 2013. Economists believe that the automatic spending cuts will hurt the already fragile U.S. economy.<\/p>\n<p>All these factors contributed to one of the worst weeks for global equity markets. For the week ended November 25, the <a href=\"https:\/\/thestockmarketwatch.com\/markets\/dowjones\/today.aspx\">Dow Jones<\/a> ended 4.78% lower, the <a href=\"https:\/\/stockmarketwatch.com\/markets\/sp500\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> ended 4.69% lower and the <a href=\"https:\/\/thestockmarketwatch.com\/markets\/nasdaq\/today.aspx\">Nasdaq<\/a> ended 3.83% lower.<\/p>\n<p>Financials were among the worst performers for the week, with Bank of America Corporation (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=bac\">NYSE: BAC<\/a>) falling 10.55%, Goldman Sachs Group Inc. (<a href=\"https:\/\/thestockmarketwatch.com\/stock.aspx?stock=gs\">NYSE: GS<\/a>) falling 3.44% and Citigroup Inc. (<a href=\"https:\/\/thestockmarketwatch.com\/markets\/nyse\/today.aspx\">NYSE<\/a>: C) falling 10.08%.<\/p>\n<p>More Posts by this author<\/p>\n<ul>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-updates\/stocks-rally-on-euro-zone-hopes-strong-thanksgiving-sales\/15830\"><br \/>\nStocks Rally on Euro Zone Hopes, Strong Thanksgiving Sales<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/federal-judge-rejects-285-million-sec-citigroup-settlement-c\/15829\"><br \/>\nFederal Judge Rejects $285 Million SEC-Citigroup Settlement (C)<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/kkr-to-acquire-capital-safety-for-1-12-billion\/15828\"><br \/>\nKKR to Acquire Capital Safety for $1.12 Billion<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/gold-prices-settle-above-1700\/15824\"><br \/>\nGold Prices Settle Above $1,700<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/market-updates\/stocks-headed-for-a-strong-finish-11\/15822\"><br \/>\nStocks Headed for a Strong Finish<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/icahn-bids-for-commercial-metals\/15820\"><br \/>\nIcahn Bids for Commercial Metals<\/a><\/li>\n<li><a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/recent-events\/business-news\/amazon%e2%80%99s-kindle-sales-quadruple-fire-leads-sales\/15819\"><br \/>\nAmazon\u2019s Kindle Sales Quadruple, Fire Leads Sales<\/a><\/li>\n<\/ul>\n<hr>\n<table style=\"border:none;margin:0;\">\n<tr>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/2024\/08\/5.jpg\" alt=\"edliston\" width=\"125\" height=\"125\" class=\"photo\"><\/td>\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<div style=\"font-size:11pt;\"><b>Post Written By: Ed Liston <\/b><\/div>\n<div style=\"font-size:10pt;\">\n<p>Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.\n<\/p><\/div>\n<\/td>\n<\/tr>\n<\/table>\n<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n","protected":false},"excerpt":{"rendered":"<p>Global equity markets tumbled for the week ended November 25 as the debt crisis in the euro zone worsened. Investors\u2019 [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"rank_math_schema_Article":[],"rank_math_focus_keyword":[],"rank_math_description":[],"financial_data_references":[],"stock_symbols_mentioned":[],"footnotes":""},"categories":[94],"tags":[28,529,1882],"class_list":["post-15747","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-update","tag-bac","tag-bgs","tag-2011-top-stocks"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/15747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/comments?post=15747"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/posts\/15747\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media\/50312"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/media?parent=15747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/categories?post=15747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wp-json\/wp\/v2\/tags?post=15747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}