Mixed Markets Ahead of November Jobs Figures

December 2, 2011

Share prices fell 1.0% in China and posted a fourth consecutive weekly decline.  Equities elsewhere advanced 2.2% in India, 1.4% in Australia, 1.0% in Thailand, 0.5% in Japan and so far show strong gains in Europe of 1.4-1.6% in the Dax, Ftse, and Paris Cac.  European bank stocks were helped by reports that the European […] More

Debt Concerns Intensify

November 21, 2011

Investors began this week is a risk-off mood, fanned by An expected admission from the U.S. congressional super-committee of failure to strike a budget cutting deal, which will trigger automatic across-the-board reductions and a possible additional U.S. credit rating downgrade. A warning from NYU Professor Roubini that an Italian debt restructuring will be unavoidable. The […] More

Europe Burning… and Draghi No Help

November 18, 2011

Although the dollar has given back some gains, stock markets in Asia and Europe tell the story of a euro debt crisis that’s still raging and threatening to drag the rest of the world down with it. The dollar fell overnight by 0.7% against the Swissie, 0.5% versus sterling, 0.4% relative to the euro, 0.3% […] More

German-French Accord to Recapitalize European Banks

October 10, 2011

French President Sarkozy and German Chancellor Merkel on Sunday announced an agreement to ensure sufficient capitalization of European banks. Although few details of the accord were released, markets reflect new appetite for risk.  The dollar fell 2.1% against the Swissie, 1.7% relative to the Aussie dollar, 1.6% against the euro, 1.4% versus the kiwi, 1.1% […] More

Risk Trade Turned Off

September 30, 2011

New concerns have arisen about Greece and the EFSF enlargement scheme.  Some believe Greece has only enough cash for the first half of October, and German officials continue to threaten no additional financial support without the imposition of more fiscal austerity in Greece.  Germany’s Bundestag, the lower parliamentary body, approved greater EFSF powers by a […] More

Revived Appetite for Risk, or a Dead Cat Bounce?

September 27, 2011

Markets rallied overnight, relieved at indications that progress is being made by European debt crisis negotiators to bulk up EFSF resources in ways that will not need the approval of national parliaments or continuing heavy participation of the ECB.  Warning: the European debt saga is full of prior instances of dashed hopes.  This week’s better […] More

Greek Debt Crisis Drags on into a New Week

September 26, 2011

Weekend talks around the IMF/World Bank meetings in Washington failed to produce any dramatic action to stop Europe’s debt crisis.  German Chancellor Merkel said a Greek default is possible.  Investors speculating that such would cut that nation’s debt in half. Stocks slumped in the Pacific Rim but rose so far in Europe.  Share prices dropped […] More

A Disappointing Italian Debt Auction

September 13, 2011

Worry about euro area sovereign debt got new impetus after Italy’s five-year auction fetched a yield of 5.6%, up from 4.93% in the prior tender and the highest since at least 1999. Italian and Chinese officials have reportedly been in talks about China maybe increasing its buying of Italian debt, but the auction did not […] More

Another Record High for Gold

August 22, 2011

Gold prices are up 1.7% on balance after spiking earlier to $1894.80.  At the high, such was 19.4% above its level on July 21.  Strong gains were also registered in other precious metal prices overnight. The data calendar today is very thin.  Markets are calm so far.  Weekend press was filled with speculation about a […] More

European Stocks Slump After GDP Data Are Released

August 16, 2011

The German Dax, Paris Cac and British Ftse are down 2.1%, 1.4%, and 0.7%.  Euro area 2Q GDP results were softer than feared.  Expectations are low on the outcome of a meeting today between French President Sarkozy and German Chancellor Merkel. In the Pacific Rim, stocks had rallied 4.8% in South Korea but fallen by […] More