Korea’s Fire Exchange, EU Debt Worries Pull Down Shares Around the World
Share markets around the world tumbled with the news of Koreas’ exchange of fire, and Spain deciding to shrink its debt sale due to rise in debt cost. Dow Jones tumbled by 1.33% to 11,029 points as at 6:00 pm GMT and FTSE, HANGSENG and Shanghai indices were down by 1.43, 2.67 and 1.94 percentages respectively. India’s SENSEX index was down by 1.33% and the broader Nifty index was down by 1.25%.
Q3 Growth Revised Up
Meanwhile, the US revised up its third quarter growth from annual rate of 2 percent to 2.5 percent, as exports as well as consumer and government spending were stronger than expected as per the commerce department. This positive news was offset by the news of rising tension in Korean peninsula and increased debt costs of Portugal and Spain. Existing home sales in the US fell more than forecast in October as per MSNBC news.
Q4 growth rate expected on the same line, but well below the 3.5% mark to bring down the high unemployment rate of 9.6 percent as per Reuters report.
Koreas’ Tension
North and South Korea exchanged artillery shells after South Korea test fired a few shots as part of usual military drill on November 23. North Korea fired dozens of shells on a South Korean island, Yeonpyeong, one of the disputed islands 
along the western maritime border. The western maritime border is one of the contentious issues between the two. North Korea declines to recognize the border line saying that it was unilaterally imposed by the UN at the end of 1950-53 Korea war. The two Koreas are technically still at war, as the war ended with a truce but not with a ceasefire agreement.
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