The euro was down against the dollar

The euro was down against the dollar

The euro was down against the dollar

European equities like the FTSE,CAC and DAX were down as investors continued to dump banking shares on mounting fears of a domino effect in the euro zone after Ireland's bailout.David Thebault, head of quantitative sales trading at Global Equities in Paris said: "There's such a distrust in the euro zone. Long-only investors are turning to German industrial stocks and equities in emerging economies. The only good thing in this crisis for European stocks is the weakening euro."On the upside, mining stocks gained ground on Tuesday, rising along with metals prices on persistent concerns about supply tightness.The Wall Street were down as news came in that Portugal's debt could be downgraded and reignited selling in a high-volume flurry might bode ill when markets reopen. Financial and technology stocks ranked among the biggest drags.Earlier in the day, the S&P 500 had erased loss after improved consumer confidence and manufacturing data were the latest signs the U.S. economy was on the mend. Consumer discretionary stocks were among the better performers after the Conference Board reported U.S. consumer confidence rose to its highest level in five months.Doug Roberts,chief investment strategist at Channel Capital Research.com in Shrewsbury, New Jersey said: "If you start to see them sell off substantially, it usually tends to have a rollover effect."

The Japanese market especially the Nikkei was seen settling lower as a tumble in Chinese shares on liquidity worries pushed Japan investors to book profits on a sharp rally for Tokyo stocks this month. Shanghai stocks fell as a cash shortfall in the domestic money market, led to a liquidity squeeze in the stock market and prompted retail investors to sell shares.Hideyuki Ishiguro, a strategist for Okasan Securities said: "Investors are worrying that China could raise interest

rates after announcing its purchasing managers' index tomorrow."

Oil prices ended up lower, as concerns that Europe's debt crisis will widen battered the euro and added to ongoing concerns about China's economic growth. Oil and dollar-denominated commodities often move inversely to the dollar.Chris Dillman, analyst at Tradition Energy in Stamford, Connecticut said: "Crude sold off mainly on the concerns about the euro zone economy and the Shanghai index slipping didn't help." The US Treasury Market rose for a third day on speculation a debt crisis in Ireland would spread to Portugal and Spain, increasing demand for the relative safety of US debt.

Gold prices were seen on a steady note as a sharp decline of the euro and signs of a deepening euro zone's debt crisis prompted investors to buy gold to hedge against currency and economic uncertainties.Gold benefited from investor fears that Ireland's debt problems, could spread to other bloc members such as Portugal

and Spain, and borrowing costs of other countries shot higher.Frank McGhee, head precious metals trader of Integrated Brokerage Services said: "When the euro slipped under $1.30 range, it triggered a new wave of safe-haven buying. If you are holding your assets in euro, you are very afraid."

The euro was down against the dollar as fears about euro zone sovereign debt prompted widespread risk aversion. A financial rescue deal for Ireland failed to contain contagion fears as the euro fell below the critical $1.30 level and investors took out many options barriers on the way.Peter Schiff, chief executive officer at Euro Pacific Capital said: "Europe is making some very bad decisions with respect to the whole region and the currency. They should not have bailed out Greece and Ireland, they should have allowed them to restructure their debt, and allowed their bondholders to take losses. Countries would now want to go into debt because they want those bailouts and the countries that are responsible get stuck with the bill.

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