World stocks steady be­low two-year high

The Pak Banker - - International3 -

LONDON: World stocks held steady be­low a re­cent twoyear high on Mon­day while the euro hit a two-week low as con­cerns over the euro zone debt cri­sis per­sisted fol­low­ing last week's Ir­ish rat­ing down­grade.

Ten­sions in Korea also made in­vestors wary. De­spite threats of war by Py­ongyang, South Korea launched live-fire drills on a dis­puted is­land af­ter an emer­gency U.N. Se­cu­rity Coun­cil meet­ing failed to agree on how to defuse the cri­sis.

Last week's five-notch credit rat­ing down­grades of Ire­land by moody's and the ab­sence of im­me­di­ate steps from Euro­pean lead­ers to con­tain the cri­sis weighed on the sin­gle cur­rency while sup­port­ing Ger­man govern­ment bonds.

"The rat­ings change at the end of last week is still keep­ing the euro un­der sell­ing pres­sure," said Carl Ham­mer, cur­rency strate­gist at SEB in Stock­holm. "There is an un­der­ly­ing un­cer­tainty with re­gards to the euro zone which is very much in fo­cus." The MSCI world eq­uity in­dex and the Thom­son Reuters global stock in­dex were steady on the day. The FTSEurofirst 300 in­dex rose half a per­cent, boosted by en­ergy shares, while Asian shares fell a third of a per­cent. -Reuters

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