Europe and China are the manufacturing power houses in the world. But the recent disappointing manufacturing reports from both the regions have created concerns and it has tensed the investors.
As banks faced the refund of close to half a trillion Euros in 12-month funds, the European Central Bank provided the banks with 131.9 billion Euros, in three-month funds on Wednesday.
About 171 banks had borrowed funds at a flat rate of 1% in the operation; the ECB said which was below expectation.
As fears over the health of the Euro zone financial system increased, the Euro tumble to a record low against the Swiss Franc on Tuesday and hit its lowest stage for eight and a half years against the Yen.
Reactions towards the single currency are unpleasant as investors anticipated the termination of a big financing program from the Central Bank of Europe.
Sparking augmented demand for the safest currencies, the Yen and the Dollar mounted against the Euro as indications that the global economic recovery is irresolute.
According to the Fitch's Head of sovereign ratings, the markets around the globe are over estimating the risk of euro zone, but the European Central Bank will have to work more for ensuring the stability in the economy.
David Riley addressed the panel on sovereign debt at the St Petersburg Economic Forum and said that the concerns about fiscal solvency, except Greece, in Europe are “overplayed".
Jerome Kerviel was under a lot of pressure and after it was discovered that he was responsible for unauthorized bets that cost the bank, Societe Generale SA a loss of 4.9 billion Euros ($6 billion). This was confirmed by Valerie Rolland-Lesueur, who worked with him at the bank.
She confirmed this in the court while testifying in the case. She was working with Jerome in the bank’s compliance and control group. She also answered questions about her relationship with Jerome apart from the bank’s compliance techniques.
European regulators are expected to provide emergency powers to national regulators to avoid naked credit- default swaps trades. These proposals are being considered by the European Union, dealing with problems after the Greek debt crisis.
It is expected that these measures will be temporary in nature and subject to approval by the relevant authorities. This was confirmed by the European Securities and Markets Authority.