Global equity markets extended their heavy losses last week despite the European Central Bank, said the intention of buying the debt.

European shares gave up their early gains, while the New York Dow Jones opened lower after the rating agency Standard & Poor fell Friday U.S.. The ECB had to intervene to resolve the problems of debt crisis spread to Spain and Italy. Yields Spain and Italy fell sharply after removal from the shore. The performance of the Spanish 10-year bond – an indication of the risks of borrowing money in Spain – has been reduced by more than 6% to 5.2%. Italian bond yields fell by a similar amount.

“Thanks to the intervention of the ECB [da] fell dramatically. Not remember the last time I saw a big move down,” said Louise Cooper BGC Partners. Market investors seem to be less enthusiastic about buying bonds from European Central Bank, as they remain concerned about U.S. economy after the downgrade by S & P.

Page, many voices say that the answer to all this is to launch a bond issue that would fundamentally alter the nation’s debts in a common European debt. But to get closer to sell this idea to the German public, the weaker countries should commit to a massive loss of sovereignty. Germany, France etc., essentially a desire to control taxes and spending in countries like Greece and Italy. ”

On Sunday, the ECB announced it would start buying government bonds in the euro area, hoping to create confidence that some of its largest economies would not default on their debt. Bonds are essentially IOUs issued by governments or companies to raise cash. Governments issue new bonds to pay obligations when due, which is why it is so important that investors continue to buy them – if not, governments are able to pay their debts.

It has been the case so far today, where the FTSE has gone from bad to sound dramatic up again. I measure the intensity of trading by the number of men on their feet shouting into their phones. By this yardstick, the market – like a flock of swallows – could be about to turn in one direction or another and take the whole band with it. Lunch here is not just for sissies, but the worst – for those who are not allowed. Not busy equals no money. No money equals no house hunting in Surrey or buying a car with HR Owen. On days like this, the reputation and millions made and paid on commercial floors.

UK-debt-crisis

In a separate statement, said the G7 group of developed country members are “determined to respond in a coordinated manner” to maintain financial stability. Analysts gave a mixed reaction to move from the ECB, saying that markets are hoping more action by politicians in Europe. “Markets are looking for a concrete plan for Europe and the USA in terms of how they will manage their losses, and these plans must be implemented,” said Richard Hargreaves Lansdown Hunter broker. “While the market may have a comfort on these issues, there will be more volatility.”

The intervention of the ECB is considered a short-term measure to help calm the stock market, but what investors want to see most of all highly indebted countries to reduce their debt by spending less and travel more income. Friday, Italian Prime Minister Silvio Berlusconi plans to balance its budget in 2013, a year earlier than expected, while Spain also promised to accelerate conservation measures.

“Ratings Downgrade is an unprecedented event,” said Alvin Liew is a Singapore UOB Bank. Standard & Poor’s cut the top-notch AAA rating the United States for the first time, citing concerns about the country’s budget deficit, and a bitter and prolonged battle in Congress to raise the debt ceiling at the last minute. It is classified in the United States to AA +. The fear for many investors is that the U.S. economy slows, and even become a double-dip recession.

This tower will hurt Asia, based in the United States, world’s largest economy, buying billions of dollars of exports each month. It would also hamper government efforts to reduce debt as it would reduce tax revenues. But China, the world’s largest investor in U.S. debt, said in Washington to address the high levels of debt rather than blaming the S & P.

An editorial in the newspaper Monday China People Daily, the spokesman for the Chinese Communist Party, urged the U.S. not to “be blind to the enormous risk that a weak dollar can mean to the fragile world economic recovery in increasing dollar prices of raw materials. ”

“It is time for America to tighten their belts and resolve its structural problems, to regain his reputation and restore confidence in the world,” the newspaper said. Fears of renewed global economic slowdown was reflected in the price of gold and oil. But seen as a safe investment in times of economic uncertainty, surged to a new record in 1697 one U.S. dollar ounces of increased demand. Meanwhile, oil prices slid again , reflecting concerns that weak global growth could lead to a decrease in demand. U.S. Light Crude Oil fell 3% to 84.23 dollars a barrel, while Brent lost 2.6% to 106.54 $.

“There are some places you can, of course, hides,” said Greg Gibbs of RBS in Sydney. “And those you can save themselves is really good. Gold is the recipient because there is no central bank to sell it. ” Do you work in the financial sector? What is your reaction to falling stock markets? You can send us your comments using the form below.