London (Reuters) - European stocks fall on Wednesday and the dollar dropped to a minimum of one month against the yen after the US Federal Reserve Chairman Ben Bernanke offered a dark vision of the economy, but did not provide advice of fresh stimulus.
Concerns about growth in the largest economy in the world have dominated financial markets, this month, and European stocks fell to their lowest levels since mid-March, global stocks of conduct 0.5 per cent below the day. (.(MIWD00000PUS)
Future equity U.S. declined by 0.4% to 1,279.00.
Bernanke acknowledged the US economy had slowed, but provided that no suggestion of the Central Bank was prepared to step in with a third round of bond purchase - a form of QE - to support the growth. The dollar fell in response.
"IS3 looks as if it has become a distant hope." "The markets had pinned much on getting another form of stimulation," said Justin Urquhart Stewart, Director at seven Investment Management.
The FTSEurofirst 300 (.)(FTEU3) high European equity index decreased by 1% to 1,093.32 points, a two-and-half month low and a sixth consecutive day of losses of plumbing.
Uncertainty about whether if European politicians will manage to identify an agreement for further financial assistance for the Greece has also impeded sentiment towards the euro area.
The euro briefly rose to a maximum of one month of $1.4696 in Asia as the dollar flanché, but later pared to $1.4648, off the coast of about 0.3 per cent for the day, hit by a slowdown in German exports and a fall in industrial production.
Greek and Portuguese debt insurance costs against default rose as investors fretted about the possibility of a Greek debt restructuring and because of the risk aversion scans markets.
German Government bunds increased approximately 13 ticks, although outperformance in the overnight US Treasury bills has seen performance on the fall of paper U.S. 10 years 9 basis points below that of the dikes, most in one year.
"Bernanke was too consensual and this is U.S. data that set the tone of here, said a trader of bonds." We're not more wood and the periphery of the euro area and the last thing that they need is a slowdown in growth. ?
Greece needs a fresh substantial assistance of the euro area to prevent the insolvency of first State currency bloc, a German newspaper reported Tuesday, quoting the Finance Minister German Wolfgang Sch?uble.
OIL SLIDE
The dollar fluctuated close to a minimum of one month less 80 yen: the Japanese currency confirmed on the risk aversion increased reflected in falls in the stock. The dollar index was also to lows a month of 73.506 struck Tuesday (.)(DXY)
Poor signs on growth in addition to the belief of market that U.S. interest rates will remain low for an extended period, while the European Central Bank is scheduled to report Thursday, it will move forward with a further increase in interest rates next month.
Brent crude fell 0.5% to $116.36 per barrel, after gaining $2.30 Tuesday. Investors are trying to determine if OPEC will raise production targets at a meeting in Vienna.
"Oil prices have been softening this morning on the back of expectations that the meeting of OPEC of today could bring an increase in production to match estimates of oil demand growth," said Jane Foley, currency analyst senior of Rabobank.
"High commodity prices are being associated with soft us growth and since EQ can be a factor behind the acceleration of prices in this sector, the Outlook for oil prices are a critical component of decisions." "of the decision makers", she added.
(Additional reporting by Nick Macfie, Brian Gorman and Kirsten Donovan; editing by Patrick Graham/Ruth Pitchford)
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