Asian and European stocks took a hammering Wednesday as markets reacted to financial regulation measures, especially a German unilateral ban on certain naked shorts announced late Tuesday. The euro fell more than 1 percent against the yen.
REUTERS - The euro rallied strongly on speculation it had hit a short-term bottom on Wednesday but equity markets fell worldwide after Germany’s move to ban some naked short sales of stocks and bonds unsettled investors.
Despite a 1.0 percent bounce in the euro, assets perceived as being risky fell in price as concerns the German ban heralded tighter financial regulation, boosting risk aversion.
european markets down on germany's industry regulation
Market talk on potential meetings or action by the European Central Bank or even that Greece would consider leaving the EU pushed the euro higher after it earlier slipped to a four-year low. The bounce was tempered as the Greek government strongly denied rumors concerning EU and euro zone membership.
Date created : 2010-05-19