Asian stocks, us futures down marriott travel agent rates

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Asian stocks, US index futures and the euro fell today as investors remained unconvinced that eurozone leaders had a coherent plan to tackle the bloc’s sovereign debt problems, which many fear could trigger a new banking crisis.

Global markets have been roiled since the end of July by the twin fears of renewed recession in the United States and Europe’s protracted debt woes, which have seen Greece, Ireland and Portugal forced to take bailouts and piled bond market pressure on Italy and Spain.

"Some of the European banks may have to recapitalise their balance sheets with government assistance usd cad historical exchange rate. It’s creating a lot of nervousness and uncertainty," said Simon Bonouvrie, portfolio manager at Platypus Asset Management in Sydney.

Underlining the brittle state of confidence in global markets, the dollar rose and the yield on 10-year Japanese government bonds fell below 1 per cent as demand for assets perceived as safe havens remained high.


Markets had been spooked in recent days by renewed talk among euro zone policymakers of an imminent default by Greece, prompted by the country’s failure to meet the fiscal goals set out in its European Union/IMF bailout.

"The conference call will at least calm nerves … and may provide 24 hours of reprieve us futures exchanges. That’s about it, though," said Sean Callow, a senior currency strategist at Westpac in Sydney.

The euro slipped to around $1.3625 against the US dollar, having jumped more than a cent in the previous session on news of the conference call stock market oil futures. The single currency tumbled to a seven-month trough of $1.3499 earlier this week.

Confidence in the eurozone was further dented on Tuesday when Italy, where lawmakers vote later on an austerity package at 1800 GMT, was forced to pay the highest interest rates since joining the euro in 1999 to sell 5-year bonds.

Italy is a particular concern because, while Europe’s bailout fund can cope with rescuing smaller, peripheral nations, it lacks the financial firepower to save the euro zone’s third largest economy.

The exposure of European banks to sovereign debt has raised fears of a freezing of credit markets in a re-run of the panic that gripped the financial sector after the collapse of Lehman Brothers in late 2008.

Data from the Institute of International Finance this month showed European banks have 3 trillion euros invested in sovereign debt, or 8 per cent of their total assets.

In a measure of the alarm in Washington, Treasury Secretary Timothy Geithner will take the unprecedented step of attending a meeting of EU finance ministers in Poland on Friday.

A Brazilian source told Reuters on Tuesday that the BRICS group of big emerging economies was in preliminary talks on increasing their holdings of euro-denominated bonds to help ease the euro zone crisis.

Benchmark 10-year Japanese government bonds futures gained 0.14 point to 142.71, with the 10-year yield easing 1 basis point to 0.990 per cent.

"People are hesitant to sell bonds because they think it will be hard to solve the fundamental problems of the eurozone," said a trader at a Japanese bank.

Reflecting the gloomy outlook for the developed world, the Asian Development Bank today trimmed its 2011 and 2012 growth forecasts, while noting the region’s emerging economies were showing resilience.

Expectations of sagging growth hurt commodities that are dependent on industrial demand, as did the stronger dollar, which makes assets priced in the US currency more expensive for holders of other currencies.

US crude oil fell 1.5 per cent to $88.85 a barrel, while Brent crude eased 0.6 per cent to $111.27 binary numbers. Copper weakened 1 per cent to $8,686.50 a tonne.


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