U.S. economy remains at risk from European financial mess - National Business - MiamiHerald.com: orrowing costs remain elevated for Italy, a nation with a $2.6 trillion deficit and about $300 billion in borrowing needs over the next year or so. On Wednesday, Italy was forced to pay investors a 7.6 percent rate of return on its 10-year bonds, well above the 7 percent threshold at which other European nations were forced to seek rescue packages.
Investors eased up on Italy on Thursday, and the rate of return on the benchmark 10-year bond fell to 6.873 percent, slightly below the danger zone.
With Italy calming, U.S. stocks recovered some lost ground. The Dow Jones industrial average closed up 112.92 points to 11,893.86, while the S&P 500 rose by 10.60 points to 1,239.70. The NASDAQ gained 3.50 points to end at 2,625.15.
This week's financial volatility underscored how problems in Greece and now Italy not only can contaminate neighboring countries but also pose risks around the globe. Whether it's surging oil prices, slower sales by U.S. corporations operating in Europe or reduced demand for U.S. farm exports there, the downturn in Europe already is sending shock waves to our shores.
No comments:
Post a Comment