Money Matters - Simplified

Eu Bailout

Dow skid halts Tuesday near 11,000

New York -- Concerns over Europe's debt crisis spreading weighed on U.S. markets Tuesday as financial ministers discussed a possible bailout for Ireland.

Ireland denies an EU bailout will be needed but still does not know the depths of the problem within its banking system. An escalating crisis, meanwhile, "will have a contagion impact on the other eurozone economies," The New York Times quoted Portuguese Finance Minister Fernando Teixeira dos Santos as saying.

Stocks fell in Europe following a broad downturn in Asia. In Hong Kong, the Hang Seng index fell 1.39 percent. In China, the Shanghai composite index lost 3.98 percent.

Dollar gains broadly Tuesday

Washington -- The dollar rose against a broad swath of currencies Tuesday as Ireland said it was not seeking an EU bailout.

Concerns over government debt in Ireland, like the financial crisis in Greece earlier this year, have spread through Europe. Equities were pummeled on Wall Street Tuesday and gold and oil prices fell.

December delivery oil on the New York Mercantile Exchange hit a two-week low, falling 2.9 percent to $82.44 per barrel. Gold on the Comex division of NYMEX gave up $30.10 or 2.2 percent to reach $1,338.40 per troy ounce.
The euro fell to $1.349 from Monday's $1.3569. Against the yen, the dollar rose to 83.26 yen from Monday's 83.19 percent.