Business
Euro, Stocks Tumble As Debt Crisis Deepens
The euro declined to a
four-month low yesterday after new IMF Managing Director Christine Lagarde said the fund was not yet ready to discuss terms of a second Greek bailout.
European stock index futures pointed to a sharp decline in equities, extending the previous session’s steep sell-off.
Growing worries about Europe stoked investors’ flight from riskier assets into bonds, extending a rally in U.S. Treasuries and sending Japanese government bond prices to a two-week high.
In a bid to keep Italy and Spain from the same fate as Greece, Portugal and Ireland, euro zone finance ministers promised on Monday cheaper loans, longer maturities and a more flexible rescue fund.
They said new measures would be announced “shortly,” but set no deadline.
“Even if they agree on a multi-billion dollar package for Greece and other affected peripheral countries, if we don’t see a continuation of implementation of the austerity cuts, all bets are off,” said Thomas Lam, group chief economist at OSK-DMG in Singapore.
The euro fell as low as 1.3932 dollars, its lowest since March 17, after a slew of stop-loss orders were triggered below 1.3980 dollars.
The single currency fell broadly, dropping to an all-time low of 1.1660 Swiss francs.
The euro extended its early losses against the dollar in Asia and was down 0.6 per cent after Lagarde said the IMF and its European partners were not yet ready to discuss conditions or terms of a second bailout package for Greece.
She said the contagion currently hitting Italy was tied to market-driven forces.
“The market was to a certain extent expecting the problems in Greece to spread to Spain, but this drastic move in Italian bonds was very surprising,” said Osamu Takashima, chief forex strategist at Citibank in Tokyo.
The spread on the 10-year Italian bond yield over that of German bonds widened to above 300 basis points the previous day from about 180 bps at the start of the month.
Billionaire investor George Soros said in a Financial Times editorial that Greece is heading for a disorderly debt default or at least a devaluation, and repeated his call for European Union leaders to adopt a “plan B” to stem contagion to the rest of the bloc.
Business
NCDMB, Dangote Refinery Unveil JTC On Deepening Local Content
Business
Food Security: NDDC Pays Counterpart Fund For LIFE-ND Project
Business
Replace Nipa Palms With Mangroove In Ogoni, Group Urges FG, HYPREP
-
Sports4 days ago
Eagles B Players Admit Pressure For CHAN Qualification
-
Niger Delta4 days ago
Don Highlights On The Potential Of Groundwater As Hidden Wealth For Sustainable Future
-
Rivers4 days ago
Group Seeks Prosecution Of Clergy, Others Over Attempted Murder
-
Opinion4 days ago
Restoring Order, Delivering Good Governance
-
Business4 days ago
CRG Partner JR Farms To Plant 30m Coffee Seedlings
-
Foods/Drinks4 days ago
What To Know About Your Menu
-
Niger Delta4 days ago
NDLEA Intercepts 584.171kg Hard Drugs In Bayelsa … Arrests 559 Suspects
-
Rivers4 days ago
Four Internet Fraudstars Get Different Jail Terms In PH