NEW YORK — Stock markets recovered around the world after an early stumble caused by election results in France and Greece that appeared to jeopardize Europe’s plans for fighting its debt crisis.
Greek voters over the weekend punished mainstream politicians who had backed cost-cutting plans demanded by the country’s international lenders, leaving the country without clear leadership. In France, President Nicolas Sarkozy was thrown out in favor of Socialist Francois Hollande, who pledged “to finish with austerity.”
Investors on Monday worried that the shifting political landscape in Europe could undermine the region’s long battle to keep its shared currency intact and restore the faith of global investors.
European markets slumped early but closed higher after worries about the political changes dissipated and investors focused on Hollande’s pledges to encourage economic growth.
Investors were also relieved after Spain announced a plan to present measures this week to support the country’s ailing banks. Prime Minister Mariano Rajoy said he would not rule out lending or injecting public money into the country’s financial system.
In the U.S., the Dow Jones industrial average fell as much as 68 points in early trading but recouped its losses and gained 10 points by the afternoon. The Dow finished the day down 29.74 points, or 0.2 percent, at 13,008.53.
The Standard & Poor’s 500 also started the day lower but ended up 0.48 points at 1,369.58. The Nasdaq composite index rose 1.4 points to 2,957.76.
Investors are waiting to hear the newly elected leaders articulate their visions for how to deal with the eurozone’s debt crisis, which is why there is a muted reaction from stock markets, according to Kim Caughey-Forrest, equity-research analyst at investment firm Fox Pitt Capital Group.
“There is no reason to cry until you get hurt,” Caughey-Forrest said.
