FT: Europe fears rock global markets

Growing fears over the health of Europe’s weakest economies rocked global markets on Thursday, sparking sharp falls in shares on the continent and a worldwide flight to the safety of the US dollar and Treasuries.

The impact of declining sentiment in Europe was compounded in the US by poor employment data, with the number of American workers claiming jobless benefits rising unexpectedly last week.

In the space of weeks, investor fears that had initially been confined to Greece have spread to Portugal and Spain, and spilled over into equity markets in the US and the UK.

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