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Stocks and commodities worldwide retreated on a global scale today amid fears that the European summit won’t produce concrete measures to solve the region’s debt crisis.
EU leaders are set to meet later today to find ways to breathe life into their ailing economies.
A central idea is a regional bond jointly underwritten by all eurozone member states. But there’s a significant rift among key policymakers.
New French President Francois Hollande supports the proposal but German Chancellor Angela Merkel is opposing it.
Shares, commodities, commodity-linked currencies and the euro all slid amid the uncertainty.
Equally disconcerting, CICC economic report says a Greek euro exit could see economic expansion in China – a country that has traditionally logged double-digit growth – fall to 6.4% in 2012.That’s evidence of just how pervasive this regional issue has become.