Is the global economic slowdown driving uncertainty?
*Reuters, by Edward Krudy, March 6, 2012
”Wall Street fell on Tuesday on renewed concerns that Greece and private bondholders may not meet a looming deadline to complete a debt swap and as caution grew over the global economic outlook after recent weak data.
A group representing bondholders warned a default could cause more than 1 trillion euros ($1.3 trillion) of damage to the region. Creditors have until Thursday night to accept a bond swap in which they would lose almost three-quarters of the value of their bonds.
Heightening tensions over Greece come a day after China cut its growth forecast and data showed the European Union is unlikely to avoid a recession. The data was a worry for the market, which has rallied largely on hopes of a strengthening economic picture.
‘What is driving the market now is the outlook for economic growth elsewhere and, pretty importantly, the U.S. and China,’ said Jack de Gan, chief investment officer at Harbor Advisory Corp in Portsmouth, New Hampshire.
Banks and materials shares, sensitive to flare-ups in Europe’s debt crisis, fell. Bank of America Corp lost nearly 3 percent to $7.74, while aluminum producer Alcoa Inc was off 2.7 pct to $9.60.”
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