A retreat in expectations for further monetary easing in Europe and the United States sent stock markets lower on Thursday.
?Meanwhile, the euro neared a one-week low ahead of a Spanish bond auction and the latest summit of EU leaders.
?China's official sentiment index of purchasing managers and HSBC's private-sector factory data also reminded investors of the fragile state of the global economy, although it did suggest Beijing could avoid a hard landing.
The euro was down around 0.1 per cent to 1.3315 dollars, it’s lowest since Feb. 23.
?“Our research now concludes that the euro will trade near current levels for the remainder of this quarter,” analysts Moergan Stanley said in a note.
?The FTS Euro first 300 index of top European shares was down 0.3 per cent 1071.77 points while a weaker session in Asia left the MSCI's world equity index down almost 0.5 per cent.
?The European Central Bank's injection of a greater-than-expected 529.5 billion euros (708 billion dollars) into the banking sector is likely to see yields drop in a Spanish bond auction for up to 4.5 billion euros of fresh debt.
?Some analysts said the success of the ploy may delay further cuts in interest rates in the euro zone.
?Safe haven German government bond futures were also retreating from record highs. European leaders convene in Brussels later on Thursday for meetings running through Friday expected to rubber stamp Greece's second international bailout.
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