European Commission to unveil plan to fight market turmoil
TORONTO: The Canadian dollar shot up over a full US cent on October 12 as traders took on more risk ahead of an announcement of new measures to fight the European government debt crisis. The loonie jumped 1.07 cents to 98.36 cents US on top of a gain of just under a cent.
Also, rising confidence that a comprehensive proposal for dealing with the debt crisis is at hand sent commodity prices higher. The November crude contract on the New York Mercantile Exchange gained 37 cents to US$86.18 a barrel. Metal prices were up sharply with the December contract on the Nymex ahead nine cents, to US$3.38 a pound. Bullion prices also charged ahead as December gold ran up $29.60 to US$1,690.60 an ounce.
European Commission President Jose-Manuel Barroso was due to unveil a broad new plan to fight market turmoil later October 12, designed to strengthen weak banks and lower Greece’s debt burden. Officials say the commission—the EU’s executive—sees this as the final opportunity to get a grip on a debt crisis that has already forced three states into multi-billion euro bailouts and now threatens to push the world economy into a second recession.