The euro fell broadly on Monday, hitting its lowest in more than four years against the dollar on concerns about debt and fragile growth in the euro zone, exacerbated by worries about Hungary's fiscal situation.
Weaker-than-expected U.S. jobs data, mounting worries about the potential dent to euro zone growth from austerity measures in some countries and concerns Hungary may be the next Greece prompted investors to dump risky assets, Reuters says.
According to BusinessWeek, stocks fell in Europe and Asia, driving the MSCI World Index to near a nine-month low, and commodities dropped on concern the pace of the economic recovery is slowing. U.S. index futures and the euro pared losses.
The MSCI World Index of 24 developed nations’ stocks slid 1.2 percent at 10:26 a.m. in London. The MSCI Emerging Markets Index declined 2.5 percent, the most since May 25.
Copper fell as much as 3.3 percent to a seven-month low, while the euro weakened 0.2 percent to $1.1942, after dropping to $1.1877. Futures on the Standard & Poor’s 500 Index fell 0.4 percent, recovering from a decline of as much as 1.3 percent.
The continued irresolution of the W.Sahara conflict: The right to self-determination vs. Realpolitik by Dr. Sidi Omar, Frente Polisario representative at the UN