adminbenchmark FTSE 100 index of top companies dipped 0,14 percent to 6 019,16 points in late morning deals, Frankfurt’s DAX 30 index dropped 0,27 percent to 7 757,51 points and the Paris CAC 40 fell 0,54 percent to 3 713,64.
All three indices surged by more than two percent on Wednesday, in a bright start to 2013, after US lawmakers agreed a deal to avert the so-called fiscal cliff.
However, while Democrats and Republicans passed a compromise, they only delayed the imposition of spending cuts for two months, meaning another debilitating stand-off is almost certain at the end of February.
“After the crazy rally generated by the fiscal cliff deal that ignited risk appetite, the euphoria clearly dissipated,” said trader Anita Paluch at Gekko Global Markets.
Madrid’s Ibex-35 index lost 1,04 percent and Milan’s FTSE Mib reversed 0,46 percent yesterday, one day after both key peripheral eurozone countries had soared by more than three percent.
In foreign exchange activity, the euro eased to US$1,3147 from US$1,3184 late in New York on Wednesday, when it had struck a two-week high at US$1,3300. Gold prices nudged lower to US$1 684,32 an ounce on the London Bullion Market from US$1 693,75.
Global stocks began 2013 with a bang on Wednesday after Washington sealed a last-minute deal to avoid the “fiscal cliff” of huge tax rises and spending cuts which would likely have pushed the United States back into recession.
“Even though the vote averted the immediate pain of tax hikes on most US households, some key issues remain unresolved and focus will soon turn to fresh talks on raising the US debt ceiling to allow the government to continue borrowing,” said Lloyds Banking Group strategist Eric Wand in a research note.
“In particular, there is a concern that Republicans could be more obstinate on spending and entitlement reform as many feel that they gave up too much in this latest deal.
“This fear, compounded by a fresh round of negotiations over the next few weeks, will soon come back to haunt the market.” — AFP.
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