LONDON (Reuters) – World stocks fell from a 5-1/2 month high on Friday as gains spurred by the Federal Reserve’s pledge of low interest rates gave way to concerns about Portugal, seen as the next domino in the euro zone crisis, and uncertainty over Greek debt talks.
Portuguese five- and 10-year government bond yields were set to remain under pressure after hitting euro-era highs on Thursday as fears grow that the country may follow Greece in requiring another bailout or seeking to restructure its debt.
Athens is locked in tough negotiations with its private creditors on a restructuring it needs quickly to avert a disorderly default when a major bond redemption falls due in March. Greece’s bondholders are demanding the European Central Bank contribute to a deal to put the country’s messy finances back on track.
“With all the focus on Greece, attention has also started to shift to Portugal, whose own bond
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