June 01, 2012

U.S. Steps Up Pressure on Europe to Resolve Euro Crisis

PARIS — President Barack Obama is putting increasing pressure on European officials to resolve the euro crisis, talking with the leaders of Germany, France and Italy to help lay the groundwork for action before a Group of 20 summit meeting to be held in June in Mexico.


Mr. Obama discussed the recent developments in Europe in video conference calls with the European leaders on Wednesday, Bloomberg News reported.

Mr. Obama was following up on discussions he held at the recent Group of 8 meeting at Camp David with the German chancellor, Angela Merkel, the French president, François Hollande and Mario Monti, the Italian prime minister.

“Leaders agreed to continue to consult closely as they prepare to meet at the G-20 summit in Mexico next month,” the White House said in a statement.

The White House has also dispatched Lael Brainard, a Treasury undersecretary, to Europe this week for talks with officials in Greece, Germany, Spain and France.

Markets were little changed Thursday on the Continent, after a sell-off a day earlier. In early trading, the Euro Stoxx 50 index, a barometer of euro zone blue chips, slipped 0.1 percent, while the FTSE 100 index in London gained 0.4 percent.

U.S. equity index futures rose modestly, suggesting a positive start at the opening on Wall Street. The Standard & Poor’s 500 index fell 1.4 percent on Wednesday.

With the majority of equity trading now generated by the computer programs of big banks and investment funds, analysts caution against reading too much into daily stock moves as a reflection of market sentiment.

The dollar, which has been rising against most other major currencies as investors sought safe haven, fell Thursday. The euro rose to $1.2404 from $1.2367 late Wednesday in New York, while the British pound rose to $1.5484 from $1.5478.

The dollar fell to 78.83 yen from 79.07 yen, and to 0.9681 Swiss francs from 0.9710 francs. Asian shares fell. The Tokyo benchmark Nikkei 225 stock average declined 1.1 percent.

The Sydney market index S.&P./ASX 200 fell 0.4 percent. In Hong Kong, the Hang Seng index was down 0.3 percent in late trading. Europe’s sovereign bond market also calmed.

The yield on the Spanish 10-year bond, an prime indicator of the government’s financing costs, slipped back to 6.57 percent, down 3 basis points. Italian 10-year yields fell 5 basis points to 5.86 percent. A basis point is one-hundredth of a percent.

nytimes.com

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