LONDON: Financial markets were roiled as Egypt’s unfolding political crisis pushed the price of oil to its highest level in more than a year and Portugal’s government teetered on the edge of collapse.
While the benchmark New York oil price rose above $ 100 a barrel for the first time since May 2012, stocks around the world were piling up the losses, particularly in Portugal, where the main PSI stock index was trading 5.4 percent lower after two leading Cabinet members quit the government.
The interest yield on the country’s benchmark 10-year bond also spiked over a percentage point higher to 7.70 percent, a clear signal that investors are fretting about the future of the bailed-out country and its efforts to get a handle on its debts.
There are fears that other Cabinet members will quit over the government’s austerity program and that may signal early elections and ensuing uncertainty.
“It’s all about Portugal midweek where political pressures are breaking investor spirit around the world,” said Andrew Wilkinson, chief economic strategist at Miller Tabak & Co.
Among the key indexes in Europe, the FTSE 100 index of leading British shares was down 1.5 percent at 6,207 while Germany’s DAX fell the same rate to 7,793. The CAC-40 in France was 1.4 percent lower at 3,689.
Markets roiled by oil price spike
