Markets across the world slipped into the red, as commodities and stocks slid and concerns over European and U.S. debt and economic growth took centre-stage.
Adding to the uncertainty over Europe was International Monetary Fund managing director Dominique Strauss-Kahn’s arrest on charges of sexual assault on the eve of a series of new talks on how to handle the financial crisis in Greece and Portugal.
The euro fell as far as $1.4048 (U.S.), its lowest level in seven weeks, and European stocks hit their lowest in more than a week. London's FTSE 100 fell 0.9 per cent, Paris's CAC-40 declined 1.4 per cent, and Frankfurt's DAX slid 1.3 per cent.
U.S. stock futures appeared ready to open lower as well. Dow futures fell 0.4 per cent to 12,505, while S&P 500 futures slipped 0.4 per cent to 1,328.2.
Japan's benchmark Nikkei ended down for a third straight day, losing 0.9 percent, while Hong Kong's Hang Seng declined 1.4 per cent.
U.S. crude was down nearly $2 dollar below $98 a barrel, while silver was down more than 3 percent to above $34 an ounce, weakened by uncertainty about the global economy and risk aversion. Gold was steady at $1,490 an ounce.
U.S. President Barack Obama warned that a failure to raise the government debt limit could lead to a worse financial crisis than 2008-09, stoking concerns about demand in the world’s No. 1 oil consumer.
Copper edged 0.4 percent lower to $8,770 a tonne.
The Canadian dollar dropped to $1.0238 (U.S.).
