The email sent will contain a link to this article, the article title, and an article excerpt (if available). For security reasons, your IP address will also be included in the sent email.
Kevin G. Hall | McClatchy Newspapers
November 10, 2011
http://www.mcclatchydc.com/2011/11/10/129972/us-economy-remains-at-risk-from.html
WASHINGTON — Stocks around the globe returned to positive territory Thursday, a day after European worries sparked steep losses. Europe's woes, however, remain a clear and present danger to the fragile U.S. economic recovery.
U.S. blue chips had fallen almost 400 points Wednesday on fears that soaring borrowing costs for Italy could push it into a crippling debt default. Those fears waned a bit Thursday as a new coalition government seemed to be taking form and there was more clarity from Italian lawmakers over promised economic reforms.
Borrowing costs remain elevated for Italy, a nation with a $2.6 trillion deficit and about $300 billion in borrowing needs over the next year or so. On Wednesday, Italy was forced to pay investors a 7.6 percent rate of return on its 10-year bonds, well above the 7 percent threshold at which other European nations were forced to seek rescue packages.
Investors eased up on Italy on Thursday, and the rate of return on the benchmark 10-year bond fell to 6.873 percent, slightly below the danger zone.