Concerns that several Eurozone countries will be hard-pressed to meet their debt obligations has investors backing away from the euro with the euro falling against most of the major currencies. Against the yen, the euro declined 1.1 percent this morning in Europe falling to 112.80 yen.
The pessimism carried over into the equity markets with European stocks declining today after two days of gains. Still, some analysts feel that sovereign debt concerns in Europe will not have a long-term negative impact on stock prices.
Ã¢â‚¬Å“Sovereign debt concerns in Europe may have a short-term effect on market sentiment but any fallout there should be reasonably contained,Ã¢â‚¬Â said Ng Soo Nam, Singapore-based chief investment officer at Nikko Asset Management Co., which has $123 billion in assets globally.
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