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


November 2, 2011

The dollar slipped back 0.7% versus the euro, 0.5% against the Australian dollar, 0.4% relative to the yen and Swissie, 0.3% against sterling and 0.1% versus the loonie.  The greenback is unchanged against the yuan and 0.2% firmer relative to the kiwi. Stocks in the Pacific Rim were widely mixed.  Gains were posted of 1.9% […] 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

New Concerns that Greek Lawmakers Might Not Approve New Austerity

June 27, 2011

Press reports in Greece that as many as four members of the ruling Socialist Party are have second thoughts about voting this week for the austerity plan sent the euro down as low as $1.4102, but such has recovered to 1.4213, up 0.2% on balance in nervous trading.  Monday has a light slate of scheduled […] More

Bad News on Many Fronts

June 23, 2011

The Fed’s message — a dovish view on the economy, resignation that there’s not much else that policymakers can offer, uncertainty about how much time it will take for long-term balance sheet adjustments to be worked out, and considerable concern about long-term fiscal prospects —  was not received well. Eurozone flash purchasing manager readings signal […] More

Focus Turns from Greek Vote to Bernanke Press Conference

June 22, 2011

Greek Prime Minister Papandreou won a vote of confidence in parliament, getting 155 of 300  votes.  Next step is for the legislature to approve new austerity measures next week so the fifth tranche of the EU/IMF/ECB aid package can be doled out.  Analysts remain under little illusion that a Greek default in the future can […] More

A Frenzied Wave of Risk Aversion

June 16, 2011

Could Greece be another Lehman Brothers collapse?  That’s the central theme of international markets where stocks, commodities, and sovereign debt yields are tumbling.  Protesting Greeks in the streets have compelled Prime Minister Papandreou, an Amherst grad, to form a new cabinet and seek a vote of confidence from parliament in further austerity that will be […] More

Euro Falters on Irish Budget Concerns

November 8, 2010

The dollar rose 0.9% against the euro, 0.6% versus the Swiss franc, 1.1% against the New Zealand kiwi, and 0.4% against the Canadian dollar and sterling.  The dollar is also 0.5% and 0.3% lower against the Australian dollar and Japanese yen but unchanged relative to the Chinese yuan. Press reports over the weekend observed many […] More