Greece has been in the news recently as the nation attempts another debt restructuring and writedowns of the public sector. This comes in preparation for the next bailout installment due in November. Italy’s 10 year BTP yields saw a spike from 2.28% to 5.015% as declining prices after reaching one month highs. European equity markets…
A new proposed plan by German Finance Minister, Wolfgang Schauble to create a wider budgetary control for the whole of the EU economic bloc was endorsed by ECB Chief, Mario Draghi. The new proposed plans aim to boost confidence in the Eurozone. However what is left to be seen is how the individual EU member…
The IMF warned that the austerity measures imposed on Portugal as conditions for its bailout could have a bigger impact on the economy. Portugal will need to make tough policy choices in order to close its large fiscal gap. The report from the IMF was published on Thursday and comes at a time when the…
ECB Chief, Mario Draghi at a press conference yesterday dispelled fears on the effect of the ECB’s bond purchase program leading to inflation. The EURUSD gained support at 1.29440 and was seen trading around the $1.30020 region. Economic data from the UK today is pointing to some positive news with signs that the British Economy…
The overnight trading session saw the decision by Standard and Poors to downgrade five more regions in Spain which resulted in heaving selling. The latest downgrades come just recently after the region of Catalonia, the biggest GDP contributor to the country was downgraded. This, despite a successful Spanish bond auction yesterday. Further adding pressure was…
European markets have been trailing lower as the earings seasons showed no big surprises. While most companies managed to stay in line with earnings expectations, weak revenues amidst challenging global conditions continue to cast a shadow on the earnings season overall. Yesterday’s European trading session saw the CAC40 lose 0.61% while the Euro Stoxx 50…
Risk sentiment in the markets continue to decline with a lackluster third quarter earnings report. Without much economic news to go by, the momentum in the market rally seems to be easing off. Last Friday, the Euro Stoxx 600 Index retraced its June 2011 highs. European leaders will have to put forth more determination and set forth…
Spain completed its bond auction on Thursday and saw more bonds being sold as the yields came down to around the 5% region. The cracks in the EU region couldn’t be more evident as the leadership drags its feet on various pending issues. While France wants a swift resolution to the EU banking reforms, Germany…
Yesterday’s trading session saw a string of positive economic data coming out of the US and the UK. Jobless claims in the UK declined with improved unemployment rate of 7.9%. Spanish bank stress tests conducted by Oliver Wyman speculate the worst case scenario as the Spanish real estate sector continues to decline. Bank of Spain…