Bourses in Euroland retreat on Syria, US debt ceiling. EUR plunges to 1.3320

FXstreet.com (Edinburgh) -Markets in the Old Continent are posting strong losses on Tuesday after jitters on a possible US military intervention in Syria are weighing on sentiment. The likelihood of the US reaching its debt ceiling by October is also adding to the grim scenario, dragging the main indices lower. The IBEX35 is leading the losers, down 1.69% and seconded by the DAX and the CAC40, losing 1.50% and 1.48% respectively. Despite better-than-expected German IFO indicator, the EUR/USD lost the grip and fell to test fresh weekly lows around 1.3320 after a tepid attempt around 1.3390.

Earlier on, markets in Asia mostly retreated on the Syrian situation, with the NIKKEI225 losing 0.69% followed by the Hang Seng, 0.59%. The Chinese Shanghai index advanced 0.34% on better prospects from the industrial sector.