The euro weakened against most of its major peers, Asian stocks dropped to a 15-month low, while U.S. futures and oil pared gains amid concern European policy makers will struggle to contain the region’s crisis.
Europe’s shared currency dropped 0.7 percent to 102.64 yen at 11:28 a.m. in Tokyo and slid 0.5 percent to $1.3433. The New Zealand dollar weakened for a sixth day and the won slumped 1.6 percent. The MSCI Asia Pacific Index lost 0.8 percent and the Nikkei 225 Stock Average sank 1.6 percent after Japan’s markets resumed after a holiday. Standard & Poor’s 500 Index futures rose 0.6 percent, paring gains of as much as 1.3 percent. Oil was little changed in New York and gold dropped a fourth day.
U.S. Treasury Secretary Timothy F. Geithner warned at the annual meeting of the International Monetary Fund that failure to combat the Greek-led turmoil threatened “cascading default, bank runs and catastrophic risk.” Estonia’s central bank Deputy Governor Ulo Kaasik said the European Central Bank may take further steps to support the region’s economy, including cutting interest rates, while German Chancellor Angela Merkel said euro- region leaders must erect a firewall around Greece.
“Sentiment is still very poor out there and one has to accept the fact that economies are not going to do so well over the next six to 12 months,” Khiem Do, the Hong Kong-based head of multi-asset strategy at Baring Asset Management, which oversees about $10 billion, said in a Bloomberg Television interview. “What you need is confidence. European governments have to do something to reestablish confidence and trust.”
Euro Weakens
The euro weakened against 12 of its 16 major peers. At last week’s close of $1.35, the currency is 12 percent stronger than its average of $1.2024 since January 1999. During weekend talks of the IMF and the World Bank in Washington, Geithner called on governments to unite with the ECB to beef up the capacity of their 440 billion-euro ($591 billion) bailout fund.
Data today may show the Ifo institute’s business climate index for Germany, based on a survey of 7,000 executives, will drop to 106.5 this month from 108.7 in August, according to the median forecast of economists in a Bloomberg News survey. That would be the lowest since June 2010.
“It’s certain that the debt crisis is causing an economic slowdown in Europe and that’s the main reason for selling the euro,” said Daisuke Karakama, a market economist in Tokyo at Mizuho Corporate Bank Ltd., a unit of Japan’s third-biggest bank by market value. “We can’t buy the euro because its economy is the weakest among the U.S., Europe and Japan.”
Germany’s Deputy Finance Minister Joerg Asmussen said yesterday that euro-region finance ministers won’t be in a position to decide on the disbursement of the next tranche of aid to Greece when they meet on Oct. 3 because a report by the International Monetary Fund, European Central Bank and European Commission has been delayed.
Kiwi, Won
The so-called kiwi slid 0.4 percent to 77.39 U.S. cents, set for its longest losing streak since September 2008. New Zealand’s imports exceeded exports by NZ$641 million ($496 million), from a revised NZ$111 million surplus in July, Statistics New Zealand said today in Wellington. The median estimate in a Bloomberg News survey of eight economists was for a NZ$321 million deficit.
South Korea’s won sank to near a one-week low after losing 4.7 percent last week. The currency gained 1.1 percent on Sept. 23 in the final minutes of trading as the finance ministry and central bank said they were ready to intervene.
Stocks Slump
About five shares declined for every two that gained on MSCI’s Asia Pacific Index, which dropped 7.1 percent last week. The gauge has dropped 22 percent from its May 2 close that was the highest since 2008, matching some analysts’ definition of a bear market.
Japan’s Nikkei 225 (NKY) Stock Average slipped 1.7 percent. Australia’s S&P/ASX 200 Index climbed 0.4 percent, while South Korea’s Kospi Index dropped 1.4 percent.
Futures indicate the S&P 500 may extend the 0.6 percent gain on Sept. 23. The MSCI All-Country World Index was down 0.3 percent. The gauge of developed and emerging markets sank 7.6 percent last week and also 22 percent from the May 2 close that was the highest since 2008.
Yields on 10-year Treasuries slipped two basis points to 1.81 percent and the rate on 30-year bonds dropped four basis points to 2.86 percent. Pacific Investment Management Co., which runs the world’s biggest fixed-income fund, predicted advanced economies will stall over the next year.
Oil for November delivery was unchanged at $79.86 a barrel on the New York Mercantile Exchange. Futures dropped 9.2 percent last week to the lowest settlement since Aug. 9. Immediate- delivery gold slipped 0.5 percent to $1,648.15 an ounce, extending a three-day, 8.1 percent slump.
S&P’s GSCI Index of raw materials tumbled 8.3 percent last week, the most since May. Money managers cut the combined net- long position across 18 futures and options by 20 percent in the week ended Sept. 20, the most since February 2010, data from the U.S. Commodity Futures Trading Commission show.
Source: www.bloomberg.com
Europe’s shared currency dropped 0.7 percent to 102.64 yen at 11:28 a.m. in Tokyo and slid 0.5 percent to $1.3433. The New Zealand dollar weakened for a sixth day and the won slumped 1.6 percent. The MSCI Asia Pacific Index lost 0.8 percent and the Nikkei 225 Stock Average sank 1.6 percent after Japan’s markets resumed after a holiday. Standard & Poor’s 500 Index futures rose 0.6 percent, paring gains of as much as 1.3 percent. Oil was little changed in New York and gold dropped a fourth day.
U.S. Treasury Secretary Timothy F. Geithner warned at the annual meeting of the International Monetary Fund that failure to combat the Greek-led turmoil threatened “cascading default, bank runs and catastrophic risk.” Estonia’s central bank Deputy Governor Ulo Kaasik said the European Central Bank may take further steps to support the region’s economy, including cutting interest rates, while German Chancellor Angela Merkel said euro- region leaders must erect a firewall around Greece.
“Sentiment is still very poor out there and one has to accept the fact that economies are not going to do so well over the next six to 12 months,” Khiem Do, the Hong Kong-based head of multi-asset strategy at Baring Asset Management, which oversees about $10 billion, said in a Bloomberg Television interview. “What you need is confidence. European governments have to do something to reestablish confidence and trust.”
Euro Weakens
The euro weakened against 12 of its 16 major peers. At last week’s close of $1.35, the currency is 12 percent stronger than its average of $1.2024 since January 1999. During weekend talks of the IMF and the World Bank in Washington, Geithner called on governments to unite with the ECB to beef up the capacity of their 440 billion-euro ($591 billion) bailout fund.
Data today may show the Ifo institute’s business climate index for Germany, based on a survey of 7,000 executives, will drop to 106.5 this month from 108.7 in August, according to the median forecast of economists in a Bloomberg News survey. That would be the lowest since June 2010.
“It’s certain that the debt crisis is causing an economic slowdown in Europe and that’s the main reason for selling the euro,” said Daisuke Karakama, a market economist in Tokyo at Mizuho Corporate Bank Ltd., a unit of Japan’s third-biggest bank by market value. “We can’t buy the euro because its economy is the weakest among the U.S., Europe and Japan.”
Germany’s Deputy Finance Minister Joerg Asmussen said yesterday that euro-region finance ministers won’t be in a position to decide on the disbursement of the next tranche of aid to Greece when they meet on Oct. 3 because a report by the International Monetary Fund, European Central Bank and European Commission has been delayed.
Kiwi, Won
The so-called kiwi slid 0.4 percent to 77.39 U.S. cents, set for its longest losing streak since September 2008. New Zealand’s imports exceeded exports by NZ$641 million ($496 million), from a revised NZ$111 million surplus in July, Statistics New Zealand said today in Wellington. The median estimate in a Bloomberg News survey of eight economists was for a NZ$321 million deficit.
South Korea’s won sank to near a one-week low after losing 4.7 percent last week. The currency gained 1.1 percent on Sept. 23 in the final minutes of trading as the finance ministry and central bank said they were ready to intervene.
Stocks Slump
About five shares declined for every two that gained on MSCI’s Asia Pacific Index, which dropped 7.1 percent last week. The gauge has dropped 22 percent from its May 2 close that was the highest since 2008, matching some analysts’ definition of a bear market.
Japan’s Nikkei 225 (NKY) Stock Average slipped 1.7 percent. Australia’s S&P/ASX 200 Index climbed 0.4 percent, while South Korea’s Kospi Index dropped 1.4 percent.
Futures indicate the S&P 500 may extend the 0.6 percent gain on Sept. 23. The MSCI All-Country World Index was down 0.3 percent. The gauge of developed and emerging markets sank 7.6 percent last week and also 22 percent from the May 2 close that was the highest since 2008.
Yields on 10-year Treasuries slipped two basis points to 1.81 percent and the rate on 30-year bonds dropped four basis points to 2.86 percent. Pacific Investment Management Co., which runs the world’s biggest fixed-income fund, predicted advanced economies will stall over the next year.
Oil for November delivery was unchanged at $79.86 a barrel on the New York Mercantile Exchange. Futures dropped 9.2 percent last week to the lowest settlement since Aug. 9. Immediate- delivery gold slipped 0.5 percent to $1,648.15 an ounce, extending a three-day, 8.1 percent slump.
S&P’s GSCI Index of raw materials tumbled 8.3 percent last week, the most since May. Money managers cut the combined net- long position across 18 futures and options by 20 percent in the week ended Sept. 20, the most since February 2010, data from the U.S. Commodity Futures Trading Commission show.
Source: www.bloomberg.com
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