Best of Wednesday’s web: Euro crisis continues to haunt markets

Global markets continued to move downwards on Wednesday as fears relating to the euro crisis escalated. Elsewhere, Egyptians went to the polls, the World Bank urges the Chinese to spend more, and Vladimir Putin appointed a new cabinet.

Image courtesy Tinou Bao: http://www.everystockphoto.com/photographer.php?photographer_id=262

Darb An-nasr in Cairo, Egypt

David Wessel discusses the potential effects of the euro zone crisis on the U.S. in the Wall Street Journal

Markets woke up this morning and remembered that the global economy consists of more than the Facebook IPO. Fears over a lack of resolution to long-troublesome problems with the euro (FXE, quote) caused markets to move lower. Wessel addresses the potential problems that America could see as the result of the euro crisis. Namely, the interconnected nature of the 21st century global financial industry could be problematic if the situation were to devolve further.

Kevin Connolly covers Egyptian elections for the BBC

Egypt held the country’s first ever free and fair elections on Wednesday. While the elections have already taken place, we do not yet know who will win. Investors would like to see a leader elected that can bring stability to the country that has been in disarray since the Arab Spring protests of last year, and, ideally, implement reforms that will benefit the country’s middle class over the long-term. However, structural problems remain, and investors should still avoid the Egyptian economy (EGPT, quote) until there is more clarity into the future of the country.

Craig Mellow discusses Vladimir Putin’s new cabinet for Emerging Money

In the wake of his victorious presidential campaign, Vladimir Putin has appointed a new cabinet for his administration. However, markets and pundits alike seemed unimpressed by his choices, which do little to enhance future Russian dynamism. Rather, his appointees harken back to previous administrations, replete with numerous holdovers. The Russian economy (RSX, quote), as a result, is unlikely to undergo any drastic transformation during Putin’s third term.

Josh Noble talks about China and the World Bank for the Financial Times’ beyondbrics blog

The World Bank has urged China to emphasize spending as it plans to introduce a new stimulus to bolster the Chinese economy (FXI, quote). Traditionally, the Chinese government has relied on massive infrastructure projects to catalyze spending in a down economy. However, a more sustainable solution for the long-term would be to enhance the nascent consumption trends in the Chinese economy, as most economies agree that the country’s previous neo-Mercantilist model is unsustainable.