Thursday May 17, 201205:05 PM GMT
European stock markets plunge over political crisis in Greece
European stock markets have experienced a sharp decline over Greek concerns. (File photo)
European stock markets have experienced a sharp decline over Greek concerns. (File photo)
Thu May 17, 2012 4:58PM
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European stock markets have experienced a sharp decline as concerns over political turmoil in Greece continue to spread across member states of the European Union.

On Thursday, stocks in London, Frankfurt, Paris, Madrid, and several other European nations plunged over worries that Greece may have to leave the eurozone as a result of the ongoing financial crisis in the country, The Wall Street Journal reported.

The benchmark Stoxx Europe 600 index was down 0.5 percent at 243.24, while the UK's FTSE 100 index was 0.6 percent lower at 5370.92.

Germany’s DAX was also down by 0.4 percent at 6355.75, France's CAC 40 was lowered by 0.5 at 3032.18, and Greece's ASE Composite went down by 1.1 percent to hit a 20-year low at 549.19.

Latest statistics show that Greece may go bankrupt by the end of June if international lenders refuse to help the country with a 130-billion-euro bailout fund to enable the country to remain in the eurozone.

Meanwhile, Spain's IBEX-35 also shed 0.6 percent at 6570.40. The dim economic outlook in Spain has also pushed the interest rate for 10-year bonds to 6.39 percent. Medium-term borrowing costs have also sky-rocketed to 5 percent-- reflecting worries about the health of Spanish banks.

Recent reports from Spain suggest the country is back in recession as it is struggling against a record high 24.4 percent unemployment rate.

Europe was hit by a serious financial crisis in 2008 and the situation has intensified over the past few months.

Earlier on Thursday, Greece’s caretaker government was sworn in to pave the way for the country’s upcoming general elections.

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