World stocks slip after Wall Street battering
Tuesday, 26 January 2010
LONDON, Jan 25 (Reuters): World stocks added to the previous week's fall Monday, weighed down by Wall Street losses, uncertainty over US bank plans and concern that Greece's debt crisis could spread.
The dollar, which tends to rise in such circumstances, was generally weaker, with signs that US Federal Reserve Chairman Ben Bernanke was moving closer to being re-confirmed in his job lifting higher-yielding currencies.
Wall Street stocks capped their worst three-day slide in 10 months Friday on fears that President Barack Obama's plan to limit risk-taking by banks would undermine profits in the financial sector.
US stock futures were higher on Monday, however, suggesting that the sentiment may shift during the day and helping lift European stocks off their lows.
World stocks as measured by MSCI were down 0.2 per cent for a near two-per cent loss so far this year. The FTSEurofirst 300 lost 0.2 per cent and Japan's Nikkei closed down three-quarters of a per cent.
"Markets have had an unsettled start to the year, buffeted by a variety of risks," Barclays Capital asset allocator Tim Bond wrote in a note. But he added: "The overall background liquidity and growth environment is still very constructive."
Greece was expected to open the order book for its five-year syndicated bond issue of up to five billion euros ($7.07 billion). How it fares could be crucial in deciding whether market jitters over Greek debt and possible contagion continue mounting.
Last week saw early signs of concerns spreading to Spain and Portugal.
The dollar slipped against the euro and higher-yielding currencies after broad gains last week.
The dollar, which tends to rise in such circumstances, was generally weaker, with signs that US Federal Reserve Chairman Ben Bernanke was moving closer to being re-confirmed in his job lifting higher-yielding currencies.
Wall Street stocks capped their worst three-day slide in 10 months Friday on fears that President Barack Obama's plan to limit risk-taking by banks would undermine profits in the financial sector.
US stock futures were higher on Monday, however, suggesting that the sentiment may shift during the day and helping lift European stocks off their lows.
World stocks as measured by MSCI were down 0.2 per cent for a near two-per cent loss so far this year. The FTSEurofirst 300 lost 0.2 per cent and Japan's Nikkei closed down three-quarters of a per cent.
"Markets have had an unsettled start to the year, buffeted by a variety of risks," Barclays Capital asset allocator Tim Bond wrote in a note. But he added: "The overall background liquidity and growth environment is still very constructive."
Greece was expected to open the order book for its five-year syndicated bond issue of up to five billion euros ($7.07 billion). How it fares could be crucial in deciding whether market jitters over Greek debt and possible contagion continue mounting.
Last week saw early signs of concerns spreading to Spain and Portugal.
The dollar slipped against the euro and higher-yielding currencies after broad gains last week.