The European Debt Crisis Burned &Nbsp, And The Global Stock Market Was Hit Hard Again.

In Greece

Bad news constantly

Fitch Ratings of international credit rating agencies has lowered Greece's sovereign credit rating again. Standard & Poor's also downgraded Italy's sovereign rating outlook to negative. Italy is about to accept the European Union and the international community.

New York Brown Brothers Harriman Ltd monetary analyst Wen Sheng said that there is no basis for standard and poor's downgrading of Italy's rating, but the market should pay close attention to France and Belgium. The two countries also face mild downgrading pressure.

In addition, worries about the spread of the debt crisis to Spain are also heating up.

The ninth local elections in Spanish history were held on 22 th. The ruling Spanish labor party suffered the worst defeat in 30 years and lost many traditional constituencies, which made investors worried about the financial prospects of Spain.

Yesterday, Greek Prime Minister Papandreou and the cabinet of ministers discussed new measures to reduce budget deficits, but he also acknowledged that Greece's hopes of returning to the bond market in 2012 were slim.

It is reported that the EU is about to issue 3 billion to 5 billion euro 10 year bonds to solve the aid funds for Portugal and Ireland.

As the debt crisis continues to deteriorate, investors' worries about the economic outlook of the euro zone also impact the market.

Data from Markit, a market research firm, released yesterday showed that in May, the euro area Manufacturing Purchasing Managers Index (PMI) fell from 58 in April to 54.8.

In addition, in May, the German PMI index dropped from 62 in April to 58.2, while the French PMI index in May dropped to its lowest level in nearly 4 months.

Global stock market tumbled

The growing debt crisis in Greece has led to panic in European and global financial markets.

Yesterday, the Asia Pacific stock market fell across the board, the MSCI Asia Pacific Index fell 2.1%, the Japanese Nikkei 225 index fell 1.52%, closed at 9460.63 points, the Seoul stock market composite index fell 2.64%, and 2055.71 points were reported; the Hang Seng Index of Hongkong, China, fell 2.11%, at 22711.02 points.

Yesterday, the European stock market opened at a low level, and the three major indexes dropped more than 1.5%.

The US stock market slumped yesterday and the Dow fell by more than 1%.

The risk of the European debt crisis has gradually expanded, and the euro will also face greater downside risks.

In yesterday's European trading session, the euro fell sharply against the US dollar, which once slid through the 1.4000 mark, and the euro set a record low against the Swiss franc.

Analysts said that the euro fell to 1.3500 against the dollar this week.

Demand for safe haven pushed up US dollar

The demand for hedging caused by the euro zone debt crisis has made the US dollar again a target market.

In yesterday's European trading session, the US dollar index went all the way and broke through the 76 level in one go, hitting a new high of nearly 7 weeks.

But market participants generally believe that the reversal of the dollar is too early.

Chandler, director of global market strategy at New York Brown Brothers Harriman Ltd, pointed out that the US dollar further strengthened against the euro, which was not entirely a result of the strong US dollar, but also resulted from the weakening of the euro area debt crisis. Once the European debt crisis began to ease, the dollar would soon resume its downward trend.

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