This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-20231761
The article has changed 16 times. There is an RSS feed of changes available.
Version 3 | Version 4 |
---|---|
Global markets flat as Barack Obama wins second term | |
(about 2 hours later) | |
Major share markets were little changed after US President Barack Obama won a second term in office. | |
The UK's main share index, the FTSE 100 rose by just 16 points in early trading, while Japan's Nikkei ended down by two points. | |
The US dollar fell slightly, with the euro rising to $1.286 from $1.281. | |
Investor attention is now likely to focus on President Obama's need to secure a deal with the US Congress over looming tax rises and spending cuts. | |
With the Republicans maintaining a majority in the House of Representatives, this may make negotiations to try to avoid the so-called fiscal cliff more difficult. | |
This could see nearly $600bn (£375bn) of tax increases and spending cuts hit the US economy in January. | |
The fear is that the tax increases and spending cuts that could be enacted if there is no agreement over deficit reduction may derail a fragile US economic recovery, and in a worst case scenario even push the economy into a recession. | The fear is that the tax increases and spending cuts that could be enacted if there is no agreement over deficit reduction may derail a fragile US economic recovery, and in a worst case scenario even push the economy into a recession. |
"We head into the fiscal cliff, trying to find compromise where it wasn't possible before," said Rob Ryan, director of markets strategy, Asia-Pacific for Royal Bank of Scotland in Singapore. | "We head into the fiscal cliff, trying to find compromise where it wasn't possible before," said Rob Ryan, director of markets strategy, Asia-Pacific for Royal Bank of Scotland in Singapore. |
Germany's Dax index was up 48 points in early trading, while France's Cac had rise by 35 points. | |
Broader concerns | Broader concerns |
The spending cuts and increased taxes are not the only concern among investors. | The spending cuts and increased taxes are not the only concern among investors. |
The US economy has been battling various other issues, not least the high levels of unemployment in the country, which have dented consumer sentiment and impacted growth. | The US economy has been battling various other issues, not least the high levels of unemployment in the country, which have dented consumer sentiment and impacted growth. |
Despite encouraging jobless numbers last week, unemployment continues to hover close to 8%. | Despite encouraging jobless numbers last week, unemployment continues to hover close to 8%. |
There are concerns amongst some analysts that the jobs market may not improve anytime soon and that the recovery in the US will remain weak. | There are concerns amongst some analysts that the jobs market may not improve anytime soon and that the recovery in the US will remain weak. |
That does does not bode well for Asian economies as they rely heavily on US demand for exports and overall growth. | That does does not bode well for Asian economies as they rely heavily on US demand for exports and overall growth. |
Euro woes | |
Investors have also been wary of the developments in the eurozone, where the Greek Parliament is set to vote on further budget cuts on Wednesday. | Investors have also been wary of the developments in the eurozone, where the Greek Parliament is set to vote on further budget cuts on Wednesday. |
The parliament will vote on 13.5bn euros ($17.3bn; £10.5bn) of spending cuts, which include tax increases and cuts to pensions. | The parliament will vote on 13.5bn euros ($17.3bn; £10.5bn) of spending cuts, which include tax increases and cuts to pensions. |
These cuts are key to determining whether Greece can get the next 31.5bn euro tranche of its European and International Monetary Fund rescue package. | These cuts are key to determining whether Greece can get the next 31.5bn euro tranche of its European and International Monetary Fund rescue package. |
Greece has warned that without this money, which will be used largely to recapitalise the country's banks, it will be bankrupt by the middle of the month. | Greece has warned that without this money, which will be used largely to recapitalise the country's banks, it will be bankrupt by the middle of the month. |
However, there have been protests in Greece against the proposed cuts. | However, there have been protests in Greece against the proposed cuts. |
Analysts said that there were fears that it may take some time before Greece is given the money. | Analysts said that there were fears that it may take some time before Greece is given the money. |
"With Greece there are always a number of stages with any vote. It is a prolonged process to reach any conclusion," said Justin Harper of IG Markets. | "With Greece there are always a number of stages with any vote. It is a prolonged process to reach any conclusion," said Justin Harper of IG Markets. |