MARKETS / FINANCE

The euro hit a two-week low against the dollar and neared a one-month trough against the yen on Monday as world stock markets fell and doubts about a U.S. recovery prompted investors to cut exposure to risk.

China reduced its holdings of U.S. Treasury debt in June by the biggest percentage in nearly nine years, according to Reuters historical data and a Treasury Department report issued on Monday.

U.S. stocks slid on Monday, dropping after a bleak outlook from home improvement giant Lowe's and weak economic figures from Japan reignited concerns about world demand.

Southeast regional bank BB&T Corp , which on Friday agreed to buy assets of lender Colonial Bank, said it is making an offering of $750 million of its common stock.

A gauge of the New York state factory sector showed growth for the first time since April 2008, signaling manufacturers could lead the U.S. economy out of the worst downturn in 70 years.

Stocks fell broadly on Monday as ongoing concerns about the speed of a global economic recovery were compounded by data from Japan, which showed that while the world's No.2 economy returned to growth, the recovery may be shaky.

CIT Group Inc said on Monday it completed its tender offer for $1 billion in debt maturing today, buying the company more time to attempt to restructure its debt and stave off bankruptcy.

Stocks fell broadly on Monday as ongoing concerns about the speed of a global economic recovery were compounded by data from Japan, which showed that while the world's No.2 economy returned to growth, the recovery may be shaky.

The following is the text of a statement issued by the U.S. Federal Reserve and U.S. Treasury on Monday:

Stock index futures pointed to a steep fall at the open on Monday as global equities sold off after data from Japan showed that while the world's No. 2 economy returned to growth, a recovery may be shaky.

The world may be slowly emerging out of recession, but the global financial crisis appears to have gone unnoticed to a whole swathe of people: teenagers.

Stock futures slightly trimmed losses but still pointed to a steep drop at the open on Monday after a regional gauge of manufacturing suggested growth was returning to the sector.

Capital One Financial Corp's U.S. credit card defaults and delinquencies rose in July, as Americans kept losing jobs and struggled to pay their debts.

Swedbank will raise 15 billion Swedish crowns ($2.1 billion) in a rights issue to boost a balance sheet hit by bad debts in the Baltics, the bank said on Monday, after saying in June it didn't need more capital.

Stock index futures slid about 2 percent on Monday as global equities sold off after data from Japan showed that while the world's No. 2 economy has returned to growth, a recovery may be shaky.

Japan's economy returned to growth in the second quarter, pulling out of its longest recession since World War Two, but analysts warned of a rocky road ahead as the nascent recovery was based on short-term stimulus efforts around the world.

Kenneth Feinberg, the Obama administration's pay czar, said on Sunday he has broad and binding authority over executive compensation, including the ability to claw back money already paid, and he is weighing how and whether to use that power.

Southeast regional bank BB&T Corp , which on Friday agreed to buy assets of lender Colonial Bank, said it commenced an offering of $750 million of its common stock.

New York Attorney General Andrew Cuomo, probing illegal marketing and sales of auction rate securities , is likely to file a lawsuit on Monday against Charles Schwab Corp for civil fraud, the Wall Street Journal said, citing people familiar with the matter.

The week to 11 August saw the first weakness on world equity markets in more than a month. The setback in risk appetite is also visible in the IMM data, which show that speculative investors reduced their aggregated short USD positions by almost one third.

Gold slipped to its lowest since late July in Europe on Monday as the dollar firmed against a basket of currencies and as a 2 percent decline in crude prices dented the precious metal's appeal as an inflation hedge.

The euro hit a two-week low against the yen on Monday and struggled versus the dollar as weak global shares and oil prices ruined traders' appetite for risk and battered currencies seen to be high-risk.

Oil fell to a two-week low below $66 a barrel on Monday as investors became more cautious about the pace of global economic recovery and any revival in energy demand.

Stock index futures pointed to a sharply lower open on Wall Street on Monday, mirroring a selloff in Asian and European stocks on mounting worries equities' recent surge had run ahead of the global economic recovery.

Stock index futures extended their losses early on Monday, mirroring a selloff in Asian and European stocks on mounting worries the equities' recent surge had run ahead of the global economic recovery.

World stocks fell by more than 1 percent on Monday, led by sharp drops in Asia, while government bonds and the dollar rose as doubts about the strength of a global economic recovery triggered a risk asset sell-off.

Asian stocks tumbled to their lowest level in over two weeks on Monday as investors raked in profits amid gloomy U.S. consumer data and a growing belief that market valuations had overtaken economic fundamentals.

U.S. stocks fell broadly on Friday, as the major indexes snapped a four-week streak of gains after weak consumer sentiment data fueled concerns about the strength of an economic recovery.

New York Attorney General Andrew Cuomo, probing illegal marketing and sales of auction rate securities , is likely to file a lawsuit on Monday against Charles Schwab Corp for civil fraud, the Wall Street Journal said, citing people familiar with the matter.