Central bankers in Europe on Wednesday intensified efforts to quell the turmoil in global money markets as evidence emerged that tighter borrowing conditions might be denting parts of the US economy.

Demand for homes in the US fell to a six-year low in July, according to figures released by the National Association of Realtors. Economists had expected pending home sales to fall 2 per cent, but instead they dropped 12.2 per cent in the month.