Euro erases gains
Wednesday, 12 May 2010
LONDON, May 11 (Bloomberg): The euro lost all of yesterday's gains on concern the almost $1 trillion lending plan to bail out indebted nations in Europe will fail to avert a slowdown in the region. Stocks, copper and US index futures fell after China's inflation rate hit an 18-month high.
The euro weakened to $1.2737 at 8:27 a.m. in London and was 0.2 per cent below last week's close, after strengthening as much as 2.7 per cent yesterday. The MSCI Asia Pacific Index dropped 1 per cent to 118.99, with five stocks sliding for every two that gained. The Stoxx Euro 600 decreased 1.1 per cent to 251.35. Standard & Poor's 500 Index futures lost 0.8 per cent, following the biggest jump in US stocks since March 2009. Copper led commodities lower, falling 1.6 per cent.
"Markets realized quickly that this crisis won't be cured by adding liquidity, no matter how big it is," said Toshihiko Sakai, head of trading for currencies and financial products at Mitsubishi UFJ Trust & Banking Corp. in Tokyo. "The structural problems of the euro zone will persist. I'm not surprised at all the euro is losing strength again."
The euro fell 0.5 per cent, after yesterday gaining 0.3 per cent. It reached $1.2529 on May 6, the weakest level since January 2009. Against the yen, the currency today dropped 1.3 per cent to 117.73.
The euro weakened to $1.2737 at 8:27 a.m. in London and was 0.2 per cent below last week's close, after strengthening as much as 2.7 per cent yesterday. The MSCI Asia Pacific Index dropped 1 per cent to 118.99, with five stocks sliding for every two that gained. The Stoxx Euro 600 decreased 1.1 per cent to 251.35. Standard & Poor's 500 Index futures lost 0.8 per cent, following the biggest jump in US stocks since March 2009. Copper led commodities lower, falling 1.6 per cent.
"Markets realized quickly that this crisis won't be cured by adding liquidity, no matter how big it is," said Toshihiko Sakai, head of trading for currencies and financial products at Mitsubishi UFJ Trust & Banking Corp. in Tokyo. "The structural problems of the euro zone will persist. I'm not surprised at all the euro is losing strength again."
The euro fell 0.5 per cent, after yesterday gaining 0.3 per cent. It reached $1.2529 on May 6, the weakest level since January 2009. Against the yen, the currency today dropped 1.3 per cent to 117.73.