Today's Coming Crisis Movie

Wednesday, July 4, 2012

Shares, euro dragged lower by grim economic data

(Reuters) - World shares, the euro and oil prices fell on Wednesday as evidence grew of the headwinds facing the global economy, though hopes of policy easing by major central banks limited the falls.

Strong demand for safe-haven German debt at a bond auction also signaled that investors remain worried about the implementation of recently agreed measures to help ease the euro zone's debt crisis, with Spanish and Italian bond yields higher.

However, activity was very subdued with U.S. markets closed for the Independence Day holiday and before policy decisions from the European Central Bank and Bank of England on Thursday.

In the quiet market Germany still found it easy to sell 3.3 billion euros ($4.2 billion) of 5-year government bonds, receiving bids for 2.7 times the amount on offer at an average yield of just 0.52 percent.

"What we are seeing is that ... this demand for safety remains intact," said Michael Leister, rate strategist at DZ Bank. Read More