The FTSE 100 (FTSEINDICES: ^FTSE) suffered a fresh dip today, and is currently down over 1.6% on yesterday’s close.
This follows new fears over the eurozone, sparked by a 6% decline in Portugal’s premier stock market as demonstrators have taken to the streets to voice their opposition to planned reforms to its austerity programme, which was integral to the country’s bailout agreement.
Finance minister Vitor Gaspar and foreign minister Paulo Portas resigned earlier this week from the coalition government over the demonstrations, while reports suggest that two more leading figures in agriculture minister Assuncao Cristas and social security minister Pedro Mota Soares could follow suit today.
If things come to a head and Portugal requires a second bailout just two years after the last one, a fresh political crisis could drag the rest of Europe back into the doldrums after recent signs of recovery.
The state of the FTSE hasn’t been helped by continued trouble in Egypt, too, with growing tension sending oil prices sky high, while we’ve also seen disappointing data emerge on the Chinese economy.
Many Fools have commented that they’ve been waiting for a re-rating or correction on some of their favourite stocks, so this dip may well provide a buying opportunity depending on your levels of ‘dry powder’.
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> Sam does not own shares in any of the companies mentioned.
