Monday, March 30, 2015
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

European banking scare sends stocks lower

By
From page B6 | July 11, 2014 |

NEW YORK — Stocks fell Thursday as worries about the soundness of a European bank spooked U.S. investors, prompting them to sell stocks and snap up less risky assets like gold and governments bonds.

Fears emerged overnight about the financial stability of Espirito Santo International, a holding company that is the largest shareholder in a group of firms, including the parent of Portugal’s largest bank, Banco Espirito Santo.

Espirito Santo International reportedly missed a debt payment this week and was cited for accounting irregularities – similar to issues that sparked Europe’s debt crisis four years ago. The bank troubles had traders and investors talking about another European debt crisis.

Thursday’s stock selling started in Europe, and spread to the U.S, where the Dow Jones industrial average plunged as much as 180 points within the first half hour of trading.

But anxiety in the U.S. quickly subsided and the market clawed back in afternoon trading. While the market never fully bounced back, the decline in the Dow was roughly half of what it was at the beginning of the session.

“Today’s news did reignite some of those contagion fears,” said Ryan Larson, head of equity trading for RBC Global Asset Management.

Portugal is one of the smaller eurozone economies and, like Greece and Ireland, needed an international rescue in 2011 during the continent’s debt crisis. A three-year economic recovery program was supposed to have straightened out its finances.

That debt crisis in Europe was largely responsible for the U.S. stock market’s last decline of 10 percent or more, known as a “correction” in Wall Street parlance. Investors back then worried that the crisis would spread to the U.S., which was starting to recover from its own financial trauma.

On Thursday, the Dow fell 70.54 points, or 0.4 percent, to 16,915.07, erasing most of Wednesday’s advance.

The Standard & Poor’s 500 index fell 8.15 points, or 0.4 percent, to 1,964.88 and the Nasdaq composite fell 22.83 points, or 0.5 percent, to 4,396.20.

Traders and market strategists pointed to a couple of reasons why stocks didn’t continue falling in the U.S.

First, because it has been a relatively quiet week for Wall Street, with little economic data and only a couple companies reporting quarterly results, any negative news was likely “met with overreaction,” Larson said.

“After participants had time to step back and assess, many realized the U.S. is in a relatively good spot compared with (Europe),” he said.

Second, even with the U.S. market trading near all-time highs, many investors are sitting on large amounts of cash. Any noticeable fall in stock prices would likely mean investors would step in.

“Generally, people are willing to put money into this market when the opportunity presents itself,” said Erik Davidson, deputy chief investment officer of Wells Fargo Private Bank, which manages $170 billion in assets.

Investors did seek out some protection Thursday. Bond prices and gold rose as investors moved money into those traditional havens. The yield on the U.S. 10-year note fell to 2.54 percent from 2.55 percent late Wednesday. Gold rose $14.90, or 1.1 percent, to $1,339.20 an ounce.

In stocks, investors moved money into utility and telecommunication companies, also common areas to invest when uncertainty emerges in markets. Utility and telecom companies typically pay a higher-than-average dividend, which makes them attractive when investors don’t expect stock prices to go higher.

The Dow Jones utility index, a collection of 15 utility companies, rose 0.6 percent — the only major index to rise Thursday.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

2 drivers killed in same area, an hour apart

By Amy Maginnis-Honey | From Page: A1, 4 Comments

 
Easter activities, events abundant

By Susan Hiland | From Page: A1 | Gallery

Christians begin Holy Week with Palm Sunday celebrations

By Amy Maginnis-Honey | From Page: A1, 1 Comment | Gallery

 
My guide to dining out

By Tony Wade | From Page: A2, 4 Comments

Local governments post week’s meeting times

By Susan Hiland | From Page: A3

 
Top young spellers to compete for Solano title

By Glen Faison | From Page: A3

Police investigate shooting off North Texas Street

By Amy Maginnis-Honey | From Page: A3, 6 Comments | Gallery

 
Vallejo police seek leads in weekend homicide

By Amy Maginnis-Honey | From Page: A3

Biz Buzz: PAL receives donation from glass company

By Susan Hiland | From Page: A10 | Gallery

 
Biz Buzz: Wiseman officer names Perez to key post

By Kevin W. Green | From Page: A10

 
Biz Buzz: Re/Max hires new Realtor

By Susan Hiland | From Page: A10

.

US / World

Police ramp up rail-crossing citations after recent crashes

By The Associated Press | From Page: A1

 
Analysis finds unequal pay for women on California Capitol

By The Associated Press | From Page: A3

Songwriter injured in California crash; motorcyclist killed

By The Associated Press | From Page: A3

 
Taylor Swift wins artist of the year at iHeartRadio Awards

By The Associated Press | From Page: A4

Police: 2 bodies found in NYC building explosion rubble

By The Associated Press | From Page: A5

 
Grandma is a centerfold: Rest home bares all for calendar

By The Associated Press | From Page: A5

 
Islamic State group beheads 8 Shiites in Syria’s Hama

By The Associated Press | From Page: A7

Waving fronds around the world, Christians mark Palm Sunday

By The Associated Press | From Page: A7

 
Air Canada plane makes hard landing short of Halifax runway

By The Associated Press | From Page: A7

Small tsunami generated in Pacific after earthquake

By The Associated Press | From Page: A9

 
.

Living

Today in History: March 30, 2015

By The Associated Press | From Page: A2

 
Community Calendar: March 30, 2015

By Susan Hiland | From Page: A2

Horoscopes: March 30, 2015

By Holiday Mathis | From Page: B6

 
Parenting: If a father is abusive, a mother must act

By The Washington Post | From Page: B8

 
Horoscopes: March 31, 2015

By Holiday Mathis | From Page: B8

.

Entertainment

TVGrid March 30

By Daily Republic Syndicated Content | From Page: A10

 
TVGrid March 31

By Daily Republic Syndicated Content | From Page: A11

Michelle Obama declares ‘Black Girls Rock!’

By The Associated Press | From Page: A11, 2 Comments

 
.

Sports

Duke back in Final Four after 66-52 win over Gonzaga

By The Associated Press | From Page: B1

 
Spartans Final Four-bound after 76-70 OT win over Louisville

By The Associated Press | From Page: B1

 
South Carolina earns 1st Final Four berth, beats FSU 80-74

By The Associated Press | From Page: B2

Turner says Saturday regional finals highest-rated in decade

By The Associated Press | From Page: B2

 
Apology for wrong anthem for El Salvador before game in US

By The Associated Press | From Page: B2

Montoya holds off Power to give Penske 1-2 sweep at St. Pete

By The Associated Press | From Page: B2

 
Stanford’s Randle chases school scoring record, title at NIT

By The Associated Press | From Page: B2

Hamlin wins for 25th time, and fifth time at Martinsville

By The Associated Press | From Page: B2

 
Hamlin wins for 25th time, and fifth time at Martinsville

By The Associated Press | From Page: B2

Jimmy Walker wins hometown Texas Open

By The Associated Press | From Page: B2

 
Oakland OF Josh Reddick won’t be ready for start of season

By The Associated Press | From Page: B2

California Chrome heads to Britain, to race at Royal Ascot

By The Associated Press | From Page: B2

 
Vettel wins Malaysian GP to end Mercedes streak

By The Associated Press | From Page: B2

Joe Gibbs on son: most courageous person I’ve been around

By The Associated Press | From Page: B2

 
Chodounsky defends slalom title at US Alpine Championships

By The Associated Press | From Page: B2

Cain goes 4 innings in Giants win over LA

By The Associated Press | From Page: B3

 
Graveman pitches into 7th inning as A’s beat Brewers 7-0

By The Associated Press | From Page: B3

.

Business

.

Obituaries

Robert Roberts

By Nancy Green | From Page: A4

 
Janice Jewel Thompson

By Nancy Green | From Page: A4

.

Comics

Garfield March 30

By Daily Republic Syndicated Content | From Page: B5

 
Dilbert March 30

By Daily Republic Syndicated Content | From Page: B5

Baby Blues March 30

By Daily Republic Syndicated Content | From Page: B5

 
Frank and Ernest March 30

By Daily Republic Syndicated Content | From Page: B5

B.C. March 30

By Daily Republic Syndicated Content | From Page: B5

 
Wizard of Id March 30

By Daily Republic Syndicated Content | From Page: B5

Beetle Bailey March 30

By Daily Republic Syndicated Content | From Page: B5

 
Rose is Rose March 30

By Daily Republic Syndicated Content | From Page: B5

Peanuts March 30

By Daily Republic Syndicated Content | From Page: B5

 
Zits March 30

By Daily Republic Syndicated Content | From Page: B5

Blondie March 30

By Daily Republic Syndicated Content | From Page: B5

 
Pickles March 30

By Daily Republic Syndicated Content | From Page: B5

Get Fuzzy March 30

By Daily Republic Syndicated Content | From Page: B5

 
Sally Forth March 30

By Daily Republic Syndicated Content | From Page: B5

For Better or Worse March 30

By Daily Republic Syndicated Content | From Page: B5

 
Baldo March 30

By Daily Republic Syndicated Content | From Page: B5

Sudoku March 30

By Daily Republic Syndicated Content | From Page: B6

 
Bridge March 30

By Daily Republic Syndicated Content | From Page: B6

Word Sleuth March 30

By Daily Republic Syndicated Content | From Page: B6

 
Crossword March 30

By Daily Republic Syndicated Content | From Page: B6

Cryptoquote March 30

By Daily Republic Syndicated Content | From Page: B6

 
Pickles March 31

By Daily Republic Syndicated Content | From Page: B7

Zits March 31

By Daily Republic Syndicated Content | From Page: B7

 
Sally Forth March 31

By Daily Republic Syndicated Content | From Page: B7

Get Fuzzy March 31

By Daily Republic Syndicated Content | From Page: B7

 
Wizard of Id March 31

By Daily Republic Syndicated Content | From Page: B7

Baby Blues March 31

By Daily Republic Syndicated Content | From Page: B7

 
Frank and Ernest March 31

By Daily Republic Syndicated Content | From Page: B7

B.C. March 31

By Daily Republic Syndicated Content | From Page: B7

 
Blondie March 31

By Daily Republic Syndicated Content | From Page: B7

Peanuts March 31

By Daily Republic Syndicated Content | From Page: B7

 
Baldo March 31

By Daily Republic Syndicated Content | From Page: B7

Rose is Rose March 31

By Daily Republic Syndicated Content | From Page: B7

 
Beetle Bailey March 31

By Daily Republic Syndicated Content | From Page: B7

For Better or Worse March 31

By Daily Republic Syndicated Content | From Page: B7

 
Dilbert March 31

By Daily Republic Syndicated Content | From Page: B7

Garfield March 31

By Daily Republic Syndicated Content | From Page: B7

 
Crossword March 31

By Daily Republic Syndicated Content | From Page: B8

Word Sleuth March 31

By Daily Republic Syndicated Content | From Page: B8

 
Bridge March 31

By Daily Republic Syndicated Content | From Page: B8

Sudoku March 31

By Daily Republic Syndicated Content | From Page: B8

 
Cryptoquote March 31

By Daily Republic Syndicated Content | From Page: B8