Greek Debt Woes Slam European and Asian Markets Again

Stocks across Europe and Asia are down significantly Thursday, as European officials fumble to establish a solution to Greece's ongoing sovereign debt woes. London's FTSE is down 1.2% today, with Germany's DAX index 0.9%. Asian shares were hit harder Thursday, with Japan's Nikkei index down 1.7% and China's Shanghai index down 1.5%. Leaders from the European Union, International Monetary Fund and the private markets have been conducting negotiations for weeks. The lack of progress has sent equity markets to a three-month low. The debt crisis has only highlighted other weaknesses in the Euro zone. Spanish unemployment stands above 15%, French banks are under review for downgrade, and Portugal has a possible debt problem of its own. According to a Reuters report, "Investors fear mounting political turmoil in Greece, where the Prime Minister plans to form a new cabinet and will seek a vote of confidence from his fractious Socialist party to try to push through an austerity package and avoid default. Growing concerns over Greek debt restructuring and the impact on European banks from possible private sector participation come as evidence mounts that global economic growth momentum is slowing just as the Federal Reserve prepares to end its $600-billion bond buying program." The CBOE Volatility Index, an indicator of market sentiment, soared 17% on Wednesday, to above 21. A higher number is supposed to show an increased fear in the markets. The Euro has been fallen against the dollar recently, and Thursday is continued the trend. The Euro is trading at $1.409, recently at $1.43.