World Markets Tumble on French-Greek Elections

Investors fear fresh crisis in eurozone
By Rob Quinn,  Newser Staff
Posted May 7, 2012 3:31 AM CDT
Updated May 7, 2012 5:30 AM CDT
A businessman passes before a share prices board in Tokyo, where the Nikkei 225 index plunged 2.7% today.   (Getty Images)

(Newser) – Markets worldwide have been seriously rattled by the rejection of pro-austerity governments by voters in France and Greece. Asian markets plunged, the euro dropped to a 3-month low against the dollar in early trading, and oil slipped to $97 a barrel. European shares also tumbled and yields rose on the sovereign bonds issued by Greece, France, Italy, and Spain, reports the Wall Street Journal.

Analysts expect further drops ahead, as investors already nervous about disappointing jobs figures in the US react to increased doubt about the eurozone's ability to solve its debt crisis. "There are still many hurdles in Europe,” an investment manager at Bahl & Gaynor tells Bloomberg. “There are no easy answers and the electorate is rejecting austerity. People will take a renewed focus on Europe and that focus is not positive.”

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