NEW YORK ( BBH FX Strategy) -- Waning risk appetite from the U.S. session carried over into Asia and the European session as equity markets remained on the back foot amid doubts about expectations underpinning this weekend's summit.Reports indicate there is French and German disagreement about how best to leverage the European Financial Stability Facility, holding up negotiations. Spain's disappointing auction also weighed on sentiment.
Emerging market stocks are falling today by the most in several weeks. News that China's Shanghai Composite fell to cyclical lows and is now at its lowest level in 31 months has seen some talk beginning to surface of a relaxation of efforts tighten lending. Energy, financials, and consumer shares led the declines.