Investors More Upbeat on Two Developments

February 25, 2013

It does not look like Berlusconi did well in Italian parliamentary elections, which end today.  The three-time former center-right prime minister and opponent of externally imposed austerity needed a strong voter turnout, and such has been smaller thus far than expected. European stocks in response have jumped sharply by 2.3% in Germany, 2.1% in Italy, […] More

Euro Hits some Bumps in the Road

February 4, 2013

The dollar has climbed 0.5% against the euro, 0.4% against the Swiss franc, and 0.1% versus the yen and yuan.  It is also down 0.3% against the Aussie dollar, 0.2% versus the kiwi and sterling, and 0.1% against the loonie. Spanish Prime Minister Rajoy, who meets with German Prime Minister Merkel today, is snared in […] More

Confidence Continuing to Build into the New Year

December 19, 2012

An optimistic mood surrounds the fiscal cliff talks. The German IFO business climate index rose to a 5-month high in December despite a softer reading on current conditions. Peripheral sovereign debt yields slipped further in the euro area.  S&P removed the “Selective Default” designation on Greek debt. Japan’s Nikkei soared 2.4%, its best single session […] More

Another Ugly Day in the Marketplace Thanks to Europe

November 9, 2011

The embattled Italian Prime Minister Berlusconi agreed to resign once budget cuts and economic reforms are approved by parliament.  Nevertheless, Italian sovereign debt yields are sharply higher.  The five-year advanced to a crippling 7.14%, and the 10-year spread versus German bunds widened to as much as 536 basis points.  Italian elections are likely in February, […] More

Suspense in Greek and Italian Politics

November 8, 2011

The dollar is unchanged overnight against the yen and euro but otherwise mixed.  The U.S. currency slid by 0.5% against the Swiss franc and 0.1% versus the yuan and sterling but has risen against commodity currencies.  It is up 1.5% against the kiwi, 0.5% relative to the Aussie dollar and 0.3% against the loonie. From […] More

Tensions Intensify in Italy but Ease in Greece

November 7, 2011

Greek Prime Minister Papandreou is stepping down in favor of a temporary coalition government whose leader is yet to be named.  The Unity Government will be installed tomorrow and must reaffirm allegiance to the October 27 bailout plan.  Then the next EUR 8 billion loan from the EU will be received.  Greek voters will elect […] More

Dollar Down Ahead of FOMC Statement

December 14, 2010

The dollar overnight lost 0.8% against the Swiss franc, 0.7% versus the Australian dollar, 0.6% against the yen and euro, 0.3% relative to the Canadian and New Zealand dollars and 0.1% vis-a-vis the yuan and sterling. The last scheduled statement of 2010 from the Federal Open Market Committee will be released around 19:15 GMT today.  […] More