The Nikkei lost 34.31 points to 8,769.09 and the Topix, larger yielded 1.57 points (-0.21%) to 750.45.

Greek Prime Minister George Papandreou concluded an agreement with the opposition to form a coalition crisis supposed to approve the bailout of the country put together in late October in Brussels.

But in detail, both parties have provided little information on how this will unfold, including uncertainty about the identity of the future prime minister who will lead the coalition.

On the Nymex, the December contract on the U.S. light crude (WTI) ended on a loss of a dollar, or 1.07% to 92.19 dollars a barrel.

Meanwhile, Brent yielded 0.33%, 0.3 dollar to 109.23 dollars.

The announcement of a further slowdown in manufacturing activity in China and the United States has accentuated the negative sentiment in the markets. and

Production increased by 0.2% the previous month, according to the expectations of economists polled by Reuters and after remaining unchanged in August. (Revised from an initial estimate showing an increase of 0.2% in August.)

Production in the utilities fell 1.8% last month.She fell 2.9% in August after the July heat wave that had boosted the use of air conditioners.

The rate of capacity utilization rose to 77.4% against 77.3% (revised from 77.4%) the previous month. (Reuters: 77.5%).

"The cost of support for the Belgian Dexia is not insignificant, and highlights a weakness of the note of Belgium, including a large banking and financial commitment that implies for the state," said Douglas Renwick, one of the leaders of the team responsible for Fitch's sovereign ratings, told Reuters in an email.

Monday morning, Standard and Poor's and Moody's confirmed or repeated Monday that they give full marks to the French public debt and its stable outlook, hours after the announcement of the public bailout of Franco-Belgian bank Dexia.

This plan includes 90 billion of government guarantees to ensure the financing needs of the public entity that will remain after decommissioning. Belgium will provide 60.5% of these guarantees, against 36.5% in France, the remainder returning to Luxembourg.

Suspended since Thursday, Dexia shares plummeted to its resumption of trading at 14.30, losing up to 36% before recovering an hour later to earn 8.88% to 0.92 euro. She eventually finished down 4.73% to 0.805 euro.At its highest in late May 2007, the action was still worth 22.56 euros.

Maria Malas-Mroueh, who is also one of the leaders of sovereign ratings, said that 36.5% of 90 billion of guarantees accounted for at most 1.6% of French GDP."For Fitch, Dexia exposure is small compared to the French GDP and it is not in itself a significant risk to the French note," she said in an email.

This view is shared by Moody's which held that the dismantling of Dexia would, for now, no impact on credit ratings of France.

Some concern weighing on the credit rating due to a share of the debt of France and also the country's banks' exposure to debt in the euro area device.

Second largest economy in the euro zone, France is the country whose deficit and debt are the highest in six countries in the euro area still rated AAA.

For the presidency of the last Board of Governors of the ECB, Jean-Claude Trichet, however, disappointed part of the market hoping the announcement of a rate cut by the end of the year as the economy slows and the Bank of England injected 75 billion for his part in pounds sterling (86 billion euros) in cash.

The CAC 40 index ended up 3.41% to 3075.37 points, following a rebound of 4.33%.Other major European markets, London was up 3.71%, 3.15% Frankfurt and Milan to 3.55%. The pan-European Euro Stoxx 50 index rose 3.18%.

"While the speech of Jean-Claude Trichet has disappointed some investors but remains on a positive note and not only to the ECB to intervene to improve the current situation," said Bertrand Lamielle, Director of Management mandated at B * capital.

INVESTORS MORE OPTIMISTIC

"Some had anticipated a rate cut and an increase in the size of EFSF (European Financial Stability), it was not the case.But we must remember that the mandate of the ECB is not the same as the Fed, and that it focuses only on inflation, which is why it has kept its rates unchanged, "he adds .

As before, the cyclical and financial stocks helped support the trend. The automotive sector grew by 4.3% and the construction of 4.04%.

Stoxx index of European banks has provided 4.18% and 5.08% of the insurers, the European Commission has announced that it would propose a coordinated action to recapitalize banks.

However, Dexia has also marked the session, the title having been suspended in the afternoon at the request of the Belgian authorities when he fell over 17%.Belgian regulators have indicated they wanted more details on the ongoing negotiations on the takeover of the Luxembourg subsidiary of Dexia in Luxembourg.

Except for the difficulties faced by the Franco-Belgian bank, investors want more optimistic about the European situation, as illustrated by the award of Spanish debt carried at rates much lower than this summer when the fears were strong to see the country contaminated by the debt crisis in the eurozone.

The yield on government bonds to 10 years is Spanish and dropped below 5% in session before recovering to 5.01% against 5.092% at the close Wednesday, while the Bund yield the same maturity is 1 , 95%, against 1.84% yesterday and nearly 1.72% on Tuesday.

Similarly, the euro was up 0.64% against the greenback at 1.3422 dollar.

Against the backdrop of the debt crisis, the activity of services in the euro area, representing about two-thirds of the economy of the 17 countries using the euro, fell into contraction in September for the first time in two years, according a flash estimate published by Markit.

The index of manufacturing it has continued to decline for the second consecutive month, following the lead of HSBC PMI index of Chinese industry, reflecting a narrowing of the event for the third consecutive month.

By mid-day, European stock markets were digging their losses, also depressed by the bleak diagnosis of the Federal Reserve on the U.S. economy.

"There is a global slowdown (…), the Fed took note of yesterday (Wednesday), and the Bank of England raised the possibility of a new round of quantitative easing," notes Lolay Jeavons, responsible research world at Lloyds Banking Group.

"There is no doubt that the risks of a global recession have increased."

The services index in the euro area stood at 49.1 after 51.5 in August, while analysts on average expected a 51.0 index.Manufacturing activity has contracted it to 48.4 against 48.5 expected and 49.0 in August.

"The numbers are consistent with continued growth in gross domestic product (GDP), so it does not show even a recession," said Martin Enlund of Handelsbanken.

GOVERNMENT CALLED TO ACTION

"That said, (…) the credit crunch in the euro area could lead to another recession by Christmas if governments do not act quickly and vigorously."

Tuesday, the International Monetary Fund (IMF) has warned Europe and the United States against the threat of a relapse into recession next year because of rapidly addressing economic problems that could contaminate the rest of world.

The European Central Bank (ECB), which was the first major central bank to raise rates after the financial crisis, may have to lower them again in the near future, especially as anti-inflation rhetoric has subsided with the decline in price pressures.

"Under these conditions, the ECB could cut the refi rate to 1% by the end of the year," Judge Clemente De Lucia, an economist BNP Paribas.

In Germany, driving the economy of the euro area, the private sector activity in September rose at its slowest pace in over two years and new orders declined for the third consecutive month.

The composite PMI, which includes industry and services, stood at 50.8 version of "flash", its lowest level since July 2009, against 51.3 in August.

"We could see very little growth (of German GDP) in the third quarter and perhaps even a contraction in the fourth," warns Chris Williamson, economist at Markit.

"A BAD NUMBER OF GDP TO PROFILE" IN FRANCE

Moreover, the growth of private sector activity in France in September fell to its lowest level since the beginning of the recovery in 2009, accentuated the decline in the industry while expanding services was weakening.

The composite PMI fell to 50.7 in version of "flash" against 53.7 the previous month.

"The results of the PMI for the entire third quarter involve a considerable loss of the underlying dynamics of the French economy, which means a bad figure for quarterly GDP growth is emerging from stagnation in the second quarter" said Jack Kennedy, senior economist at Markit, which links with the escalating debt crisis in the eurozone.

In China, HSBC index of purchasing managers in the manufacturing sector fell to 49.4 this month, against 49.9 in August, the third consecutive month that figure below 50 points , which separates expansion and contraction.

The contraction in manufacturing activity, against a background of decline in new orders and new export orders suggests that the second largest economy in the world will perhaps not a replacement locomotive to address the "continuing weakness" found Fed by the United States.

Economists and Chinese leaders expected that the country's growth slowing, largely because of declining exports.

"The export sector seems increasingly threatened since the global fundamentals are reeling," said Connie Tse, an economist at FORECAST in Singapore.

But even if the prospects darken abroad, domestic demand should continue to maintain growth in China over 8%, even if it fuels inflation and may complicate the task of the Chinese central bank to contain rising prices without undermining activity.

The New York Stock Exchange ended down 1.03% Thursday, the Dow Jones industrial yielding 30 119.96 points to 11,493.57 points.

The S & P-500, wider, lost 14.47 points, or 1.19% to 1204.42 points.

The Nasdaq Composite Index was down 33.42 points for his side (-1.3%) to 2546.04 points.

Trading volumes were low, investors pausing after four sessions up and awaiting the U.S. employment figures on Friday.

The number of jobless fell by 12.000 last week, while the ISM manufacturing sector, albeit declining, remained in the growth area in August, while economists expected a contraction.

However, the decline in nonfarm productivity in the United States was larger than originally announced in the second quarter.It fell 0.7% annual rate instead of a decrease of 0.3% in the first estimate.

Construction spending in the U.S. have also declined by 1.3% in July, their biggest drop since January, according to figures from the U.S. Department of Commerce released Thursday.

President Barack Obama has also revised downwards its growth forecast as well as on the budget deficit.

As for values, title Ciena surged 20.18%. The manufacturer of equipment for telecommunications shows a profit for the first time in three years, while analysts expected a further loss.

Goldman Sachs has been unscrewed from 3.49%.The U.S. Federal Reserve demanded that the U.S. bank to make the services of an outside consultant to review the mortgages issued by one of its subsidiaries, to identify and compensate borrowers who have been victims of improper seizures .

Finally, as GM fell 4.16%. The manufacturer has not achieved the most optimistic of sales growth in the United States in August. Since the beginning of the year, the stock has lost about 36% of its value.

The Nikkei gained 1.30 point to 8,955.20 and the Topix, broader took 3.30 points (0.43%) to 770.60.

Japanese stock indices have evolved jagged, torn between the inclination to take profits and hope to see the Fed become more involved in supporting the economy.

The Fed has proposed a series of actions to support the U.S. economy at its meeting in early August, some members calling for bold action, according to the minutes of the monetary policy meeting of the central bank's August 9.

Values, we see the dip of 9.48% of Aozora Bank. The action of the bank had made progress Tuesday against a backdrop of discussions on a takeover by the Australian bank ANZ but the fear of not seeing the transaction to materialize has prompted investors to take profits.

The European Commission gave the green light Thursday, August 11 for Spain to restrict, temporarily, the free movement of Romanian workers on the labor market. "The European Commission has authorized Spain to restrict access of Romanian workers to its labor market until 31 December 2012, due to serious disturbances in this area," the EU executive said in a statement.

The Spanish government decided in late July, to restore the requirement for Romanian citizens to apply for a work permit if they want to practice in Spain for its decision by the high unemployment in the country.Spain was strongly affected by the crisis. The unprecedented drop in GDP (-3.9% between 2008 and 2010) resulted in record levels of unemployment in the EU, over 20% since May 2010. "The continuing rise in the number of Romanian residents in Spain and high unemployment have affected the country's capacity to absorb new labor flows," said the Commission in a statement.

The European Commissioner for Social Affairs, Laszlo Andor, but stressed that the measures taken by Madrid "would be limited as much as possible in time and a positive overall attitude towards the free movement of workers would continue to predominate in Europe ". "This decision was taken because of the very specific situation faced by Spain in employment.In general, I am convinced that the restriction of free movement of European workers is not the answer to the problem of high unemployment, "said Andor. According to the Commission, more than 800,000 Romanians are currently living in Spain and are affected by an unemployment rate of 30%.

The temporary restrictions on access of Romanian nationals to apply its labor market to all sectors and regions, said the Commission. The decision does not concern Romanian citizens already active in the Spanish labor market. On the entry of Romania and Bulgaria into the EU in 2007, the Accession Treaty allows countries to limit for a maximum period of seven years the access of citizens of these countries to their labor markets .

Spain had lifted the moratorium in January 2009, however, is keeping the right to reinstate the restrictions by invoking a "safeguard clause" in case of difficulties of its labor market. Spain has invoked this clause in the letter sent to the European Commission July 28, 2011. This is the first time that the safeguard clause is invoked in the field of free movement of workers. Now, "the Romanian citizens who want to work in Spain on behalf of a company must apply for prior authorization based on the existence of an employment contract", the Spanish authorities have planned.

Monday morning before the opening of the Tokyo Stock Exchange, the finance ministers and central bankers from the G7 issued a statement in which they pledged to take "all necessary measures" to support financial stability and growth.

They say they are determined to act whenever necessary, to ensure liquidity and support the smooth functioning of markets, financial stability and growth.

They reaffirm "our common interest in the international financial system and our strong and stable support for the exchange rate determined by the market" and stressed that excessive volatility and disorderly movements in exchange rates has negative implications for economic stability and financial.

Previously, the European Central Bank (ECB) announced "actively implement" the bond buyback program to try to stem the debt crisis that has shaken the euro area and threatened to spread Spanish and Italian economies.

Monday before a day of crucial markets, the European financial institution did not specify the countries concerned by this acquisition debt but every indication that this may be obligations of Spain and the Italy.

In a statement issued after a conference call late Sunday, the ECB urged Rome to Madrid and set up as quickly as possible measures of fiscal consolidation recently announced by both countries to try to reassure markets .

"On the basis of these estimates that the ECB will implement an active program of redemption of bonds," wrote the ECB.

The absence of bond buyback of Italy and Spain by the ECB to ease prices has been particularly punished by the markets that have seen the sign of internal divisions harmful.

Markets expect the ECB to see begin on Monday the purchase of government bonds in both countries to stabilize their prices.Interest rates in Italy and Spain in recent days jumped to their highest levels in 14 years.

Monday morning, the IMF praised the response of the ECB and the G7.

BERLIN AND PARIS PRESS

In a joint statement issued Sunday a few hours before the end of the ECB meeting, French President Nicolas Sarkozy and German Chancellor Angela Merkel stressed that "a rapid implementation and complete the measures announced is essential to restore confidence markets."

According to South Korea, a conference call Sunday morning brought together financial officials of the G20, which groups the world's major economies, to discuss the situation caused by tension on the debt in the euro area and lower by Standard & Poor's sovereign rating of the United States.

The G20 and the European Central Bank have been active behind the scenes to assess the consequences of the debt crisis on both sides of the Atlantic, shaking financial markets and fears of a relapse of Western countries into recession .

After heavy turbulence in global financial markets, which have lost about 2.500 billion dollars over the past week, European and American leaders find themselves again forced to reassure investors about the ability and determination of their countries to reduce deficits and public debts.

PANIC IN THE GULF AND ISRAEL

Saudi Stock Exchange, the largest in the Arab world, has faltered on Saturday, falling from 5.5% to a low of five months before showing a small increase of 0.08% at the end of Sunday.

But it was in Tel Aviv that the decline was most pronounced with a fall of 6.99% recorded by the TA-25 index in Israel.The TA-100, wider, has meanwhile shrunk by 7.2%.

An extension of the crisis in Italy or Spain, after the bailouts granted to Greece, Ireland and Portugal, in the eyes of observers would require a strong increase in lending capacity of EFSF, equipped for time of 440 billion euros.

Quoted by the weekly Der Spiegel, the German government experts doubt that Italy could be re-floated by the EFSF even if the fund saw its capacity threefold, because the needs of Rome are in their too great.

United States, the lowering of the sovereign rating has been denounced by the Treasury, which held that the rating agency "forgot" 2000 billion in budget savings in its calculations.

In Washington, an economic adviser to the White House deplored the decision by S & P to degrade the rating of U.S. debt from AAA to AA +, which could ultimately affect all markets by increasing the cost of borrowing and undermining the prospect of sustainable recovery.

Asian allies of the United States, Japan and South Korea have renewed their confidence in U.S. Treasury bills, may lose value.