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Deadlock over second Greek bailout triggers shares to tumble worldwide
Date 16/06/2011 17:51  Author webmaster  Hits 1106  Language Global
16 JUN 2011

Euro falls to month low while bond yields surge

By Thomas Molloy | The Independent

STOCKS fell across the world as fears grew that European officials will delay a second rescue plan for Greece. The euro tumbled to a month low against the dollar while some Irish and Greek bond yields surged to new highs.

The Stoxx Europe 600 Index, which tracks the continent's biggest companies, fell 1.1pc, extending losses since February to 8pc. The Stoxx 600 has posted six straight weeks of declines, the longest losing streak in almost three years.

Finance Minister Michael Noonan's comments about Anglo Irish bonds led to further falls of the euro against the dollar in late afternoon trading in New York yesterday.

"It had looked like we were making progress on addressing Greece's problems but now it seems things are fraying at the edges," said George Davis, senior currency strategist at RBC Capital Markets in Toronto.

"People are capitulating, taking a defensive posture and getting out of their risky trades."

In the United States, dismal manufacturing and housing data intensified fears of slowing US growth

Banks

National benchmark indexes declined in all of the 18 western European markets, except Iceland.

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See also:

Greece has long past the point of no return (Guardian)