The Asian exchanges ended in red for the fourth consecutive day effected by Angela Merkel’s resistance against issuance of EURO-bonds and, unwillingness to let ECB (European Central Bank) be a lender of last resort.

At the German-France-Italian summit Merkel stressed that Eurobond establishment shall level out national differences in the interest rates on bonds. An immediate result would be higher German interest rates. Instead of letting ECB act as lender of last resort, Germany wants changes in the EU-treaty which can force highly indebted national states to exercise budget discipline.

The continued internal quarrel in EU had a negative effect on Asian market. Europe is expected down for the ninth day in row. Euro is at at a 8 week low. EURO/USD 1.3332, up from bottom levels on 1.33 in Asia trading. Oil is flat; NYMEX 96,50 and Brent 107. Gold struggles at 1685 down 10 dollar since start of morning trade. USD is strengthened against JPY at 77.32.