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Euro weak near two-year lows on dire German data
24 May 2012 at 4:57am

LONDON (Reuters) - The euro hit a near two-year low against the dollar on Thursday after dire German economic data suggested no country in the region was immune from crisis, alarming investors already fretting over the risk that Greece will leave the euro zone. A weaker-than-expected Ifo business climate index and manufacturing PMI data for May suggested growth in Europe's largest economy that has helped the currency bloc dodge recession may be starting to slow. ...

LONDON (Reuters) - The euro hit a 22-month low and safe-haven German bonds achieved record low yields, after data showed Europe's economic woes worsening as business confidence is undercut by talk of a Greek exit and slow progress in tackling the debt crisis. Private-sector factory activity in China also faltered in May as demand for exports fell, in a sign the impact of the euro zone crisis could be undermining global economic recovery. Europe is China's largest export market. ...

European stock markets edged up on Thursday, recovering from heavy losses the day before, as investors had expected the continent's leaders to fail to reach a breakthrough in their crisis resolution efforts.

LONDON (Reuters) - Brent crude oil steadied above $105 per barrel on Thursday as reports of a hiccup in talks with Iran over its nuclear program balanced weak economic data from China and Europe. Iran accused world powers on Thursday of creating "a difficult atmosphere" that hindered negotiations on its atomic energy program, signaling a snag in diplomacy to defuse fears of a covert Iranian bid to develop nuclear bombs. Brent crude oil fell 53 cents to a low of $105.03 per barrel, a five-month low, but then rebounded to trade around $105.71, up 15 cents, by 0945 GMT. ...

LONDON (Reuters) - Britain fell deeper into recession than initially thought in the first quarter of 2012 due to a slump in construction output, raising the likelihood that the Bank will opt to inject more stimulus to protect the economy from the euro zone debt crisis. Britain is in its second recession since the 2007-2008 financial crisis, and the prospects for a recovery are cloudy as leaders in the euro zone, Britain's biggest trading partner, are still far from resolving their debt woes. ...

FRANKFURT (Reuters) - BMW , the world's biggest premium carmaker, plans to appeal a fine from the Swiss Competition Commission amounting to 156 million Swiss franc ($163 million) within the legal deadline of one month. "We categorically reject the accusations, the argumentation and the amount of the fine," said a spokeswoman for the company, adding that BMW adhered to all laws governing both Switzerland and the European Economic Area. ...

World stock markets wavered Thursday as the lack of a breakthrough in Europe's attempts to shake off its debt crisis kept sentiment gloomy.

BEIJING (Reuters) - China's factories faltered in May as export orders fell to two month lows, a private sector survey showed on Thursday, suggesting surprise weakness in April's hard economic data persists even as policymakers seek to shore up growth. The HSBC Flash Purchasing Managers Index, the earliest indicator of China's industrial sector, retreated to 48.7 in May from a final reading of 49.3 in April. It marked the seventh straight month that the index has been below 50, indicating contracting economic activity. ...