on Monday, Semiconductor manufacturing giant Intel Corporation announced company’s fourth quarter revenue and earnings would be lower than expected, which coupled with the volatility of EU sovereign debt crisis, weighing on the market. U.S. stock openned and closed lower on Monday, With the energy and raw materials sector leading the lose. The Dow jones industrial average traded lower, with a lose of 162.72, or 1.34%, to finish at 120.21 , the Nasdaq Composite declined 35.59 pionts, or 1.31%, to close at 2612.26, S&P 500 index shed 18.80 points, or 1.50%, to end at 1236.39.
Rating agency Fitch said on Monday, comprehensive solutions for eurozone sovereign debt crisis hadn’t come out yet, the agreements reached by EU officials at a Summit last week were just some progressive measures.
Moody’s investors services company warned that EU country’s sovereign credit rating was still in decline pressure, because the EU Summit in Brussels last week, those participating countries had not launched a new initiative to address sovereign debt crisis in the region.
Olivier Blanchard, theIMF Chief Economist, said on Sunday it was not a full and thorough programme to solve the eurozone debt crisis, although the EU countries reached a consensus on deepening economic integration agreements.
Greece will negotiate with the European Union, the International Monetary Fund and the financial institutions for a new round of bailout. The Greek government will likely fall into debt defaults if can not recieve timely financial rescue.
On Monday, the Government of Italy issued about 7 billion euros worth 9.4 billion U.S. dollars of 12 – year government bonds with the interest rate 5.92%. Prior to that, Italian Treasury bond interest rates had hit a record high of 6.087%.