Wall Street Journal
September 8, 2010
New concern about Europe's debt woes sent the euro down, pressured global stock markets and drove up borrowing costs for some European nations on Tuesday.
Gold prices reached exchange-record highs and U.S. Treasury prices rose, as investors searched for safer investments.
The focus of investors' renewed anxiety: questions about the rigor of recently completed stress tests imposed on European banks. The Wall Street Journal on Tuesday reported that the tests, results of which were released in July, understated some lenders' holdings of potentially risky government debt.
Fears that Europe's banks are still vulnerable to losses on risky bond investments sent shivers through Europe's bond markets, and refocused investors' attention on the health of various European nations, especially Ireland, Portugal and Greece.