Today's Coming Crisis Movie

Monday, August 20, 2012

European shares ease, euro helped by European Central Bank Fairy-tale

(Reuters) - European shares eased after last week's strong performance on Monday while a report that the European Central Bank could set an interest rate threshold for purchases of euro zone bonds helped nudge up the euro and temper demand for German bonds.

European and global markets have had a recent strong run on hopes that a new plan being drawn up by the ECB, the central bank overseeing the 17 countries that use the euro, could finally help the bloc get on top of its debt troubles.

Top European stocks .FTEU3 opened slightly lower on Monday having closed at 13-month highs on Friday following their best week in seven years. The main indexes in the region were little changed with London .FTSE down 0.04 percent and Paris .FCHI and Frankfurt .GDAXI also lower. .EU .L .N

German government bond futures fell 36 ticks back towards last week's lows, while Spanish bonds rallied, an indication of a rising appetite for risk. Read More