Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

GLOBAL MARKETS-Euro slips on debt jitters, data hits oil

Published 05/11/2011, 11:01 AM
Updated 05/11/2011, 11:04 AM

* Euro down on Greek debt jitters, hits session low

* Oil weaker on signs China's economy is cooling

* China industrial output growth eased in April

* Europe stocks up on earnings, Wall St stocks lower

(Adds details, updates prices)

By Leah Schnurr

NEW YORK, May 11 (Reuters) - Ongoing uncertainty about sovereign debt woes in the euro zone pushed the euro lower on Wednesday, while crude oil prices tumbled after data suggested China's economy is cooling.

Oil extended declines midmorning in New York after a weekly U.S. government report on oil inventories showed crude stocks rose more than expected last week. On Wall Street, the drop in oil prices hit energy shares fell, while disappointing corporate results also pulled the Dow down.

Investors fretted over whether euro zone officials will give timely aid to debt-burdened Greece and Portugal, though financial markets are braced for some form of debt restructuring in the long run.

EU finance ministers will discuss Greece's debt crisis next week but will not decide on new emergency aid until a mission to Athens that began on Wednesday gives its verdict on progress on reforms. [nLDE74A0SY]

Ministers are likely to tell Greece it must deliver on savings and privatization targets already agreed if it wants new emergency financing next year, a euro zone source said.

But Greece is already chaffing under sharp spending cuts and tax rises. Police fired teargas at dozens of youths hurling stones in central Athens and a strike against austerity brought much of the country to a halt. [ID:nLDE74A0SY]

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Some poorer European nations "have never had their fiscal house in order," said John Doyle, strategist at Tempus Consulting in Washington. Investors "may have lost focus on that but it is now back in focus."

Meanwhile, Portugal hopes its bailout plan will be approved on Monday and looked set for a green light from a key German parliamentary panel. [ID:nLDE74A16A]

The euro hit a session low of $1.4275

CHINA ECONOMY SLOWING?

Data out of China showed the country's industrial input growth eased much more than expected in April, reducing the need for further aggressive monetary policy tightening even as inflation remains stubbornly high. [ID:nL3E7GB0H2]

Despite robust demand for oil in China, investors turned their focus to signs the economy is cooling and benchmark Brent crude oil dropped $2.42 to $114.78 a barrel, after rebounding for two days from last week's tumble. U.S. crude lost $2.98 to $109.90 a barrel.

U.S. stocks fell with oil prices and earnings from Dow Jones industrial average component Walt Disney Co also disappointed.

"Disney earnings last night were below expectations," said Giri Cherukuri, head trader at OakBrook Investments in Lisle, Illinois.

"Oil prices are down and that is affecting energy stocks today," he said. "We're getting a pullback after three days of gains in the market."

The Dow Jones industrial average <.DJI> was down 74.09 points, or 0.58 percent, at 12,686.27. The Standard & Poor's 500 Index <.SPX> slipped 7.23 points, or 0.53 percent, to 1,349.93. The Nasdaq Composite Index <.IXIC> was off 7.45 points, or 0.26 percent, to 2,864.44.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

U.S. stocks have partially recovered in the past two days from four days of falls last week and remain near the three year highs seen in early May.

European shares held onto gains as strong corporate results there offset euro zone jitters. The FTSEurofirst 300 index <.FTEU3> rose 0.2 percent.

World stocks as measured by the MSCI stock index <.MIWD00000PUS> reversed earlier gains to lose 0.4 percent. (Additional reporting by Rodrigo Campos and Nick Olivari; )

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.