Via: FT.com

Global equities fell and the dollar sank on Tuesday after US government plans to rescue ailing mortgage groups Freddie Mac and Fannie Mae left investors unconvinced.

The dollar declined to a new record low against the euro, which at one point helped send oil prices close to recent highs. Hopes of finding safe havens lifted gold to a four-month peak, and bond yields fell as investors piled into the safety of government paper.

”The impact of Sunday’s announcement by the Federal Reserve regarding its mortgage bail-out plan for Fannie Mae and Freddie Mac remains somewhat derided in the market,” said James Hughes at CMC Markets. ”It has apparently done little more than underline the perilous state of the US economy.”

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