Global stocks slide of the euro on the euro-zone debt crisis

London- global stocks fell while the euro that moves towards a minimum of two months, on Wednesday on concerns about the debt crisis spread the euro area and the potential for a further reduction of positions in risky assets.

Oil prices fell as the dollar rebounded against the euro and according to industry data showed U.S. crude fell inventories less forecast last week. Euro-zone debt problems drove the price of oil down more than 2% Monday.

Asian shares followed European and Wall Street shares lower as persistent concerns on the Economic Outlook for the United States and woes of euro weighed on sentiment.

Policy options for Europe to avoid a default value of Greek debt appear to be fast, dwindling casting a pall over the single currency and fueling fears of a chain reaction in other very indebted in the 17-nation euro zone countries.

The euro, which had rallied after better than expected German business confidence data Tuesday edged toward a minimum of two months of $1.3968 was hit earlier this week. He has lost about 5 percent since early May.

"The market does not know what to expect next in Greece and clearly there was a change in sentiment towards the euro and speculators are preferring to play the short side, said friend Gavin, nabCapital currency analyst.".

Speculative selling of the euro has intensified on vague market talk that the Greece can call an election early and investors trimmed positions risky, with a fall in the futures of stock index U.S. adding to pressure on the euro.

The euro has been the last fell by 0.6% to $1.4021, well below the previous session of the top of $1.4134.

THREAT OF CONTAGION

Global stocks are measured by the MSCI hangar 0.4% with European actions (.)(FTEU3) decline of 0.3% as line investors venerate yet on the potential for contagion Greek spread of major economies such as the Italy.

"Concern about Spain and the Italy may be exaggerated, but the question of the Greece goes no further, and if the Greece restructures, which may open the door of the Ireland and Portugal.", said Brian Dolan, Chief Strategist at Forex.com.

A default value of Greek debt would adversely affect other peripheral States of the eurozone and could push Portuguese debt and Irish into junk territory, Moody said Tuesday, warning he would classify most forms of restructuring by default.

Index of the MSCI Asia Pacific off Japan in stocks fell by 0.7% while the Nikkei (.)(N225) closed 0.6%.

Treasury us and German bunds advanced as investors a reduced exposure to risky assets and sought refuge in sanctuary of the debt. The performance of the 10-year Bund was perched just above the psychologically important level of 3% and could violate in the short term, in view of the debt crisis unresolved.

Oil slipped as the dollar rebounded against the euro, giving part of his rise from 2 percent of the day after Goldman Sachs raised its forecast of Brent crude price overnight. Brent crude for July delivery did not $112 a barrel.

However dug downwards after having rallied to its highest level in three weeks at the previous session, but the bullion price in euro hit a record on concerns about the impact of a defect of possible debt by the Greece on other economies in the euro area.

Spot Gold fell to $1,521.86 an ounce after rising as high as $1,527.45 Tuesday, its strong since May 4.