20100630 1303 Global Market News.

ECB Loans Demand for cash on offer from the ECB today will highlight how much European banks still rely on the central bank for funding. Lenders need to repay 442 billion euros ($540 billion) tomorrow and credit Markets may face a renewed bout of risk aversion should demand for the three-month ECB loans exceed 300 billion euros, according to Laurent Fransolet, head of European fixed-income strategy at Barclays Capital. The ECB will announce how much money banks have asked for at about 11:15 a.m. in Frankfurt.

Asian shares fall on risk reduction
SINGAPORE, June 30 (Reuters) - Asian stocks slid and the euro struggled near a two-week low as investors unwound risky positions before the quarter-end amid heightened concerns over banks' funding conditions in Europe.
"Given that the market has risen pretty sharply since late May, I am not overly alarmed by the size of falls we are seeing today," said Choi Seong-lak, a market analyst at SK Securities. KOSPI has gained 8 percent in the past month after hitting a six-month low on May 25.

 Asia shares fall as bank funding fears growSINGAPORE, June 30 (Reuters) - Asian stocks slid and the euro struggled near a two-week low on Wednesday on concerns over banks' funding conditions in Europe and the pace of the global recovery.
Fears of a potential liquidity shortfall of more than 100 billion euros in the financial system as European banks repay 442 billion euros ($545.5 billion) in emergency loans sparked the latest sell-off in equity markets, with the Standard & Poor's 500 Index  tumbling to an eight-month low.

Stocks fall as bank funding worries intensify
LONDON, June 29 (Reuters) - World stocks hit a 2-1/2 week low  while oil and the euro also slipped as investors grew nervous over the funding situation of banks about to repay 442 billion euros ($545.5 billion) to the European Central Bank.
"There's concern over the ECB expiry of the massive liquidity facilities member state banks have been enjoying ... We're seeing a real sense of uncertainty about the market at the moment, a real lack of conviction," IG Markets analyst Ben Potter noted.

Fed officials: US recovery firm but watching Europe
RICHMOND, Va., June 28 (Reuters) - Europe's debt debacle poses some risks for the United States, but is unlikely to derail the country's solid economic recovery, top Federal Reserve officials said.
Financial markets have grown nervous in recent months about the possibility that some European countries might have trouble repaying their debts, potentially setting off a renewed banking sector crisis.