Equities: Markets sliding as eurozone and debt fears grow

18th August 2011

The Financial Times was last reporting how markets were "repricing assets to reflect a riskier environment". 

"Equities are sliding and commodities prices are lower while action in currencies and bonds typifies reticence, with perceived havens such as US Treasuries and the dollar receiving funds."

The FTSE All-World equity index was down 1.2 per cent, Brent crude was down 1 per cent to $109.55 a barrel, while dollar index was up 0.3 per cent and the euro is down 0.4 per cent to $1.4372.

In Europe the FTSE Eurofirst 300 was off 2.5 per cent.

Unsurprisingly gold was up 1 per cent to $1,806 a troy ounce, and again threatening its record high of $1,814 hit a week ago.

In London, Barclays fell 7.9%, Royal Bank of Scotland 6.3%, Lloyds Banking Group 7.1% and HSBC Holdings lost 4.4%

In Germany, Commerzbank was down 5.3% and Deutsche Bank fell 4.3%, while in France, Societe Generale fell 7.3% and Credit Agricole dropped 4.2%.

CNBC.com reported that Morgan Stanley had slashed its global growth forecast for 2011 and 2012, saying the U.S. and the euro zone were "dangerously close to a recession", and criticized policymakers in Washington and Europe for not acting more decisively to contain the sovereign debt crisis.

The bank cut its global gross domestic product growth forecast to 3.9 percent from 4.2 percent for 2011, and to 3.8 percent from 4.5 percent for 2012.

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