Posts Tagged: Debt Crisis

The Canadian Dollar has only managed to grow against the US Dollar today, but fell against all its other counterparts due to the fact that traders are looking for higher yielding assets on the market. The growth against the US Dollar can be explained through the fact that the trading sentiment is improving, making investors willing to risk a little bit more. On the other hand, the currency fell against the Euro and the Japanese Yen, which are higher-yielding assets than the Canadian Dollar.

We can notice that the Producer Price Index in the US, which is the most important trading partner of Canada, has increased by 0.2 percent during the month of July, after it has previously fallen by 0.4 percent during the month of June. Due to the global economic situation, market analysts were expecting no change, so this growth actually came as a surprise which has helped to the improvement of the Canadian Dollar’s situation. Read more »

The previous weeks have brought huge gains for the Swiss Franc. But apparently the ascendant lane is not yet to be finished as the Swiss currency has managed once more today to register record highs against most of it major counterparts. This is related to the fact that the US finds itself in a difficult situation due to the debt-lifting measures which threaten to weaken the global economy, managing to push down the demand for unsafe currencies. As the Swiss Franc manages once more to prove its reputation as the safest currency on the market, it has known a very fructuous period lately, with all the problems in the US and in the European Union.

The Swiss Franc has reached new historical highs against the US Dollar and the Euro today. The currency has also managed to reach the maximum level in 3 years against the Japanese Yen. As most of the traders around the world are expecting Read more »

The Australian Dollar registered gains against all its major counterparts today, but especially against the US Dollar. The growth against the US currency has reached new record levels based on the crisis with which the US continues to be confronted as neither of the parties accepts giving up some of its intentions concerning the level of the debt ceiling. As the deadline is to be reached in a week, the situation tends to get worse every single hour, making the US Dollar fall against lots of other currencies around the world. As well, as the consumer inflation reports indicated higher values than the ones expected by traders in what it concerns the Australian economy, values which are hinting more hawkish interest rate policy, the Australian Dollar managed to gain territory and to score new record highs.

The Australian Dollar has been favored by the results of the CPI data for the second quarter of the year 2011 which Read more »

Asian Stock markets opened higher today. NIKKEI started the day at 10,096.89, previous close was 10,010.39. HANG SENG opened at 22,251.02, previous close was 21,987.29.

The markets have reacted positively after European Union leaders reached a new deal for Greece and other debt plagued eurozone countries. Another factor supporting the stock markets is strong Morgan Stanley results. As fear of contagion from Greece will engulf Spain and Italy fades away, investors are still cautious. Yesterday, S&P rating services reminded that the United States may lose its AAA credit rating if the U.S. lawmakers fail to raise the country’s debt limit before the deadline. Even though investors bet the U.S. will maintain its debt payments and keep its credit rating, the Japanese yen’s strength against the dollar is something that they can not ignore.

Asian session is going flat and calm today. EUR rallied to a two week high against USD yesterday after EU leaders agreed on Read more »

Asian Stock markets opened slightly higher today. NIKKEI started the day at 10,019.94, previous close was 10,005.90. HANG SENG opened at 22,054.42, previous close was 22,003.69. Strong gains made the day before on hopes that the EU leaders will come up with some solution, which doesn’t involve postponing, to solve the fiscal crisis. However, it seems that upside is limited as investors are still concerned about the U.S. debt limit. Deputy General Manager at Cosmo Securities, Mitsuo Shimizu said “Most investors are stuck to the sidelines today ahead of the EU summit and as nothing has been decided yet on the U.S. debt ceiling issue”. Even though President Obama backed a deficit reduction plan released by a bipartisan group of senators yesterday, there are still plenty of uncertainties over the U.S. debt ceiling talks. In addition, the U.S. lawmakers have less than 2 weeks to raise the country’s debt ceiling.

Asian session started the day with USD weakening Read more »

Asian Stock markets are sliding slowly today. NIKKEI started the day at 9,921.50, previous close was 9,974.47. HANG SENG opened at 21,767.80, previous close was 21,804.75. Drop in U.S. stocks, concerns over European sovereign debt and the lack of progress in U.S. debt ceiling negotiations are the most important factors that are making the markets nervous. Senior strategist at Daiwa Asset Management, Yoshinori Nagano said “In the U.S., as well as concern about the economy, with the debt talks stalling the outlook for the country is still unclear. We are unable to see the end of the sovereign debt crisis in Europe, and fears are refusing to abate. The results of what is happening in Europe are beating down bank stocks here”.

Europe’s debt problem is getting very serious and President Obama is running out of time. U.S. dollar has been under pressure amid growing concern U.S. lawmakers will fail to reach a deal on the country’s debt Read more »

First trading day of the week and Asian Stock markets opened slightly lower. The Tokyo Stock Exchange is closed due to Japan holiday today. Hong Kong stocks are climbing slowly. HANG SENG opened at 21,790.20, previous close was 21,875.38. We see that there is a cautious approach to the market as investors look ahead to corporate results and resolutions to debt problems in the eurozone and the United States. Investors also focus on gold mining stocks as gold make new record high every day. Chief commodity analyst at HSBC, James Steel said “The longer the debt talk drags on, the more you would want to own a safe haven like gold. The crude oil market is also rallying quite nicely, and that’s a big element in support for gold”. Some analysts think that gold may rise above $1,700 an ounce within a couple of months, based on charts.

Unfortunately, with no solution to the U.S. debt crisis in Read more »

Asian Stock markets opened slightly lower today. NIKKEI started the day at 9,919.59, previous close was 9,936.12. HANG SENG opened at 21,874.43, previous close was 21,940.20. The stock markets are still under pressure due to ongoing concerns over eurozone fiscal problems and U.S. debt woes. Despite the fact that the outlook of global economy is a bit gloomy, analysts say that the majority of Tokyo shares are still trading at or below their book value. Currency strategist at Tachibana Securities, Kenichi Hirano said “While there are many external factors that are dampening the mood, Japanese stocks are attracting foreign buying with their cheap valuations”. Analysts say that trading may be sluggish ahead of U.S. economic indicators such as the consumer price index, industrial production and a stress test of European banks due later today. Investors are also focusing on corporate earnings. Citigroup is going to release its quarterly results today.

U.S. debt ceiling discussions and rating services’ latest Read more »

Asian Stock markets opened lower today. NIKKEI started the day at 9,929.18, previous close was 9,963.14. HANG SENG opened at 21,900.62, previous close was 21,926.88. Today we see the impacts of Moody’s statement and FED Chairman Ben Bernanke’s speech yesterday. Investors are reducing their positions as concerns about U.S. debt ceiling problems and eurozone debt worries increase. Fund manager at IG Investment, Tim Leung said “There’s uncertainty and confusion about whether we are going to see executives and legislators settle on the debt limit and the Moody’s review suggests that there may be a problem if they cannot reach a deal. There is a definite timeline for the U.S. debt ceiling discussion and also with financing the maturing papers from Italy, so both are risks in people’s mind”.

Asian session started the day with USD weakness. CHF, JPY and gold are making new highs. As the current situation is making investors more cautious, we see that the demand Read more »

Asian Stock markets are almost flat and further sell off seems stopped for now. NIKKEI started the day at 9,891.11, previous close was 9,925.92. HANG SENG opened at 21,800.33, previous close was 21,663.16. For this week, we may see the impact of the yen’s renewed strength and worries about eurozone debt crisis. $/¥ was down to 78.45 today. Senior technical analyst at Mizuho Securities, Yutaka Miura said “People are now used to seeing the dollar dipping below 80 yen, but the question is whether this strong yen trend is temporary or is it one that will last for a while. If it lasts for a week, the Nikkei may fall towards 9,500”. According to the latest report released by Chinese National Bureau of Statistics, China’s gross domestic product expanded at a rate of 9.5% in the April-June quarter and June industrial production improved 15.1%.

Today we see EUR, GBP and AUD trying to recover against USD. Yesterday Moody’s Read more »