That stock News

The euro sank to its lowest in the 2 months against the dollar fell below $1.34 sometime in the afternoon trade. The single currency fell by 2 cents to $1.342 at 3.50 pm.

Irish, Portuguese and Spanish Government bonds are also in the line of fire.

Yield - the rate of return earned by investors - obligations of Government 10-year reference is passed to 8 024pc of 7 869pc lundi.Sur Portuguese bond yield moved to 6 636pc of 6 523pc.

While the difference between yields on 10-year bonds Spanish and German lifted - another sign fears of investors - pink 223 basis points, the highest since a Summit euro-ère hit in June.

The Spain is responsible for large concern EU because it represents the Ireland of economy of the euro area, unlike the Greece 10pc and Portugal, which account for less than 2pc each.

FTSE 100 index of key actions London fell 1pc - or 58 points-5621 as European and global growth fears weigh on mining stocks.

Major stock markets and Germany France found 0. 8pc and 1. 6pc respectivement.Pendant this time Dublin Bank shares collapsed, losing ground even more than the coalition Government has imploded, compromising the prospective EU - IMF rescue.

"As if all European sovereignty issues were not enough, and they are, the markets were more résonnés as North Korea with impeccable timing, decided to show that its military might," said Jennifer Lee, an analyst at BMO group financial.

Two models for failure

A problem in the euro area is it is now two models for failure even Greece, Government mishandling economy infiltrated into the banking system and he outside markets.With the banking crisis, the Ireland overwhelmed which was also an economy that works.

Brussels insisted on Monday that the Portugal is "a totally different situation" in Irlande.Cependant, position of the Portugal is unfortunately not that different to the Greece.The Spain analogy is Irlande.Que the sovereign or the banking system is in crisis, there are now précédent.Et markets are once more surprising.

"It clearly the Greece was not an isolated case and European authorities are concerned with the contagion," said Simon Derrick, head of the currency at the Bank of New York Mellon."Interpretation of their behaviour, is that there is more risk there."

The greatest risk is the Portugal.Dette public sector, approximately 80pc of GDP, is not in itself a problem, but combined with a 9 3pc deficit which is unchanged despite some fiscal austerity in early (a VAT increase and spending cuts), it is easy to evoke fears of sovereign debt trap.

Worse still is the level of debt from the private sector, foreign investors PIB.Les 240pc relies on 40pc of bank financing and concerns about the economy were already "close Portuguese banks out of the markets" by Giada Giani, European Economist at Citi.

"This is a question about pricing and availability of credit", she added.Taking into account the extent of the debt to the private sector, a significant increase in rates caused by the Portuguese borrowing perceived economic contingencies could result in slower than the 0 2pc already anemic growth anticipated next year.

The Portugal minority Government pushes that remain fresh austerity measures to reduce the budget deficit by four percentage points but the questions about his credibility.

The Spain Irish problem

Problems the Spain echo Ireland .the banks the Ireland have five times the size of the active nationale.Banque the Spain economy assets are three times more grandes.Tous both suffered debilitating property bubble caused asset prices collapse.

However, Spain, has a stronger regulatory body and that half of its banking assets are held by the risky "cajas" or regional banks.

To date, Bank recapitalizations have cost 1pc Spanish Government of GDP, compared to the 20pc in Irlande.Mme Giani said "there is more bad news to come".Seulement €with a jar of recapitalisation raise € has been drawn up to now.

As the Ireland Spain, finances do not were in a mess until the crisis has public frappé.Dette provides only 65pc of GDP this year and 9 3pc deficit must be reduced by five points percentage under a regime of austerity.

Great fear, however, is that the cajas release a new storm on the Ireland publiques.Pour finance, Bank bail pushed 12pc budget deficit at 32pc .c ' is a rescue operation too far.

Market currencies were also concerned that speculation that China will raise interest to curb rampant inflation, injuring an already faltering global recovery rates.

While Korea North and South Korea exchanged fire Tuesday, adding to the geopolitical uncertainty,

A strengthening dollar hit the price of gold.

"Or is likely to be remained in the near future, with $1 340 is a good level of soutien.Les perspectives are still strong, the European debt situation is not very optimistic, said the trader based Singapore.".

Uncertainty in Europe and the far East affected stock markets in Asia, with China Shanghai low index of 2pc.

View the original article here