Markets slip on European debt worries

Most shares traded lower Monday and the euro fell as markets worried about the European debt crisis.

The euro was down 0.9 per cent to a fresh two-month low against the U.S. dollar, with the eurozone currency worth $1.3123 US late in the afternoon. The Canadian dollar spent much of the day lower before closing with a gain, up .13 of a cent at 98.17 cents US.

Shares were down in North America and Europe after the European Union signed an agreement Sunday to provide nearly $91 billion in rescue loans for Ireland.

Investors are still concerned about debt problems in other European countries, including Portugal and Spain.

The S&P/TSX composite index also rebounded from a loss earlier in the session, finishing the day up 2.9 points, or 0.02 per cent, at 12,895.7.

In New York, the Dow Jones industrial average fell 39.51 points, or 0.4 per cent, at 11,052.49.

The Standard & Poor's 500 index was down 1.64 points, or 0.14 per cent, at 1,187.76, while the Nasdaq composite index was down 9.34, or 0.37 per cent, at 2,525.22.

In London, the FTSE 100 closed down 1.8 per cent. Germany's DAX fell 2.2 per cent, while the CAC-40 index in France fell 2.5 per cent. In Tokyo earlier, the Nikkei 225 average rose 0.9 per cent.

The January crude contract gained $1.97 to $85.73 US a barrel on the New York Mercantile Exchange, while the December gold contract closed $3.60 higher at $1,366.00.