Reuters reported that Asian shares fell and the euro wobbled above multi year lows against major currencies as soaring borrowing costs deepened worries that Spain might need a bailout while Greece appeared unlikely to meet terms conditional to its aid package.

MSCI's broadest index of Asia Pacific shares outside Japan slid 1.1% to 1 month low before paring some losses to stand down 0.6%. Worries about the euro zone crisis hurting corporate earnings worldwide sent Korean shares down to their 2012 lows while resource reliant Australian shares fell on prospects of weakening demand for commodities.

Japan's Nikkei fell 1.4% to 7 week low before trimming loses to 1% while US stock futures pointed to further weakness on Wall Street later in the day after three consecutive losing sessions for the S&P 500 index.

Grains extended their losses as traders took profits from last week's record highs on improved weather forecasts which gave some relief to US crops outlook. Copper hit 1 month low and US crude eased 0.2% to USD 88.36 per barrel. Brent steadied at USD 103.46.

Mr Richard Murrow director of EL & C Stockbroking said that "Generally speaking the outlook for commodities is linked to the outlook for Europe and the outlook for Europe hasn't got much better for quite some months."

Risks of Spain requiring huge financial assistance for its indebted regions, as well as banks saddled with bad loans, fanned concerns of a contagion to other fiscally challenged countries, sending Italy's benchmark stock market down to its lowest level since the euro's launch on Tuesday.

Source - Reuters

(www.steelguru.com)