London - The euro dipped and German bond prices rose on
Monday as the euphoria over the latest
measures to ease Europe’s debt crisis ebbed and tepid manufacturing data from
Asia raised concerns about the health of the global economy.
Riskier assets including equities, commodities and the
single currency gained sharply on Friday after euro zone leaders agreed to
allow their new bailout fund to inject money directly into banks from next year
and intervene in bond markets.
“While the policies agreed by EU Leaders are a step in the
right direction they are on their own unlikely to resolve the eurozone
sovereign debt crisis,” Lee Hardman, currency economist at Bank of
Tokyo-Mitsubishi UFJ said.
The euro fell 0.3% to $1.2625, after spiking 1.7% against
the dollar to a high of $1.2693 on Friday, its biggest one-day jump in eight
Yields on the 10-year German government bond eased 3 basis
points to 1.55 percent as prices rose, and gold also edged down 0.3% to $1
591.64 an ounce.
European equities were around seven-week highs, with the
FTSEurofirst 300 of top companies up 0.1% at 1,022.68 points, but gains were
capped by the weakening growth outlook and Germany’s stock market opened lower.
Purchasing managers surveys in the major exporting nations
of China, Japan, South Korea and Taiwan all showed demand from importing
centres such as Europe and the United States to be weaker than expected in