Global equities sank and the dollar firmed against the euro on today

Global equities sank and the dollar firmed against the euro on today as investors focused on weakness in the world economy and eurozone tensions, while awaiting progress over a US debt deal.

London’s benchmark FTSE 100 index of leading shares fell 0.37 percent in morning trading, Frankfurt slid 0.49 percent and Paris retreated 0.29 percent.

Madrid fell by 0.40 percent and Milan lost 0.81 percent.

Asian markets also stumbled amid stubborn concern that the United States’ credit rating could be downgraded for the first time in history despite US lawmakers having agreed a plan to avert a default.

Hong Kong closed down 1.07 percent, Tokyo sank 1.21 percent, Seoul dived 2.35 percent and Shanghai shed 0.91 percent.

“So much for the relief rally that was supposed to occur on the back of the proposed debt deal,” said Chris Weston, an analyst at IG Markets trading group.

“The focus has now shifted to the global economy with manufacturing deteriorating across most global economies.”

European equities and the euro were also hit by new worries over the plight of debt-laden eurozone member nations Italy and Spain.

Source AFP