(BN) Asian Stocks Fall as Euro, Oil Drop Before Merkel-Sarkozy Crisis Meeting

Asian Stocks, Euro Decline Ahead of Merkel and Sarkozy Meeting

Jan. 9 (Bloomberg) — Asian stocks fell for a third day, while the euro and oil retreated before German Chancellor Angela Merkel and French President Nicolas Sarkozy meet to develop rescue plans for the euro over the next three months.

The MSCI Asia Pacific Index lost 0.3 percent as of 8:50 a.m. in Hong Kong. Standard & Poor’s 500 Index futures declined 0.4 percent. The euro fell to an 11-year low against the yen and weakened to its least in nearly 16 months versus the dollar. The Australian dollar dropped 0.6 percent. Gold slid 0.5 percent to $1,610.20 an ounce, while oil decreased 0.3 percent.

“People are now saying that a recession in Europe, or a double dip, is far more likely than in the U.S.,” said Kara Ordway, a foreign-exchange strategist at City Index Asia Pacific in Sydney.

Germany will sell 4 billion euros ($5.1 billion) of six- month bills today, while France will auction a total of 7.7 billion euros of debt maturing in 364 days or less. China’s December lending and money supply growth exceeded economists’ estimates, signaling monetary conditions may be easing as the nation’s central bank said it must be prepared for possible shocks from the U.S. and Europe.

The meeting between Merkel and Sarkozy will be followed by a round of talks among euro-area leaders before the next summit meeting in Brussels on Jan. 30. Italian Prime Minister Mario Monti also will visit Berlin this week, and Sarkozy and Merkel will both travel to Rome on Jan. 20 for negotiations with the Italian government.

German industrial production probably dropped 0.5 percent in November after a 0.8 percent increase the previous month, according to the median estimate of economists surveyed by Bloomberg News before the figures are released today.

To contact the reporter on this story: Lynn Thomasson in Hong Kong at lthomasson Masaki Kondo in Singapore at mkondo3

To contact the editor responsible for this story: Shelley Smith at ssmith118

Find out more about Bloomberg for iPhone: http://m.bloomberg.com/iphone/

Vitus Feldmann

Ex-Professional Soccer Player, International Banker, International Business and Soccer Analyst. Global Marketing & Social Media Leader. Communicator and Connector! I help businesses and individuals to do better marketing and social media marketing. My focus is revenue creation because that is what keeps the business going. I am in business for over 30 years and I have learned to question the status quo. The ability and willingness to do so has given me an edge in my job. Marketing, especially social media marketing is fast paced. Today, nothing is like yesterday and tomorrow is different from today. Your business suffers, if you don't adjust. I am also an avid photographer and my favorite "model" is New York City.

%d bloggers like this: