Posts Tagged: Italy

The previous week has been dominated by the risk aversion which started to show on the market due to the situation in Europe. After the resignation of the Greek Prime Minister, the crisis started to really spread towards Italy as well, not only at the financial level, but also at the political one. After the vote which indicated the fact that the Italian Prime Minister, Silvio Berlusconi, is not wanted by the Italian citizens and after the sell of the Italian 10-year bonds, the market started to be dominated by an increasing risk aversion which seemed to calm down just a little at the end of the week. Traders are very concerned by the financial situation in Greece, Italy, Spain and Portugal and by the spreading political crisis, especially as there are rumors according to which Angela Merkel seemed to discuss with the other European leaders the possibility of quitting the unique currency for the Eurozone.

The risk Read more »

Due to the fact that the Economic Situation in Europe has become worse and worse especially due to the fact that the crisis is now also political, not only financial, the Euro finds itself in a very bad situation, reaching the lowest level since the month of August 2010 against the US Dollar and the Japanese Yen and the lowest level since February against the Great Britain Pound. Traders’ concerns regarding the European sovereign debt crisis seem to grow on a daily basis, making the European currency fall more and more, despite its previous rally registered at the beginning of the month.

The yield of the Italian 10-year bonds has decreased by 7.48 percent yesterday, showing that the situation in Greece can and it is spreading. This has caused a very powerful reaction on the trading market as traders are now concerned with the situation in Spain and in Portugal. Moreover, the situation in Italy is becoming worse Read more »

Traders have finally had the chance to receive some good news on behalf of the European Union whose leaders have finally announced some of the decisions taken at the Group of Twenty summit. These decisions are intended to put an end to the sovereign debt crisis in Europe. The European leaders have decided that private bondholders are to take a nominal 50% cut on the Greek debt. By analyzing the reactions of the market, we can notice that everyone seems quite thrilled about this decision, at least for now. Of course, there are also lots of questions related to this decision which continue to be left unanswered and which will probably be responsible for the decrease of the value of the Euro in the period to come, but, for the moment, everyone seems rather happy with the way things turned out in the matter of the European sovereign debt crisis.

This has had an immediate impact on the Read more »

The Euro is faced with difficulties due to the sovereign debt crisis, which tends to become worse in the European Union. Even though the Euro has had a positive week till the moment when Fitch Rating has announced the decision of downgrading Italy and Spain’s credit ratings, the end of the week has brought problems to the currency, making it fall against its major counterparts.

The end of the week has brought the Euro in the situation of deleting all the gains it managed to gain against its major counterparts. These losses are due to the decision taken by Fitch Rating, that of downgrading the credit rating for Italy and Spain, decision which has caused a new wave of concerns among traders, who have been thus reminded that the sovereign debt problem in Europe continues to be a very important problem. Fitch took the decision of downgrading Italy’s credit rating from AA- to A+ and Spain’s credit Read more »

Despite the fact that the European debt crisis seems to get worse than usual, the European currency managed to grow a little based on the assumption that the sovereign debt crisis is to be contained. This is the reaction of the forex traders to the discussions had by the European leaders. There are numerous traders who have confidence in the European leaders and who think that all these problems are going to be solved.

At the moment, it does not seem to be any plans as to expand the EFSF, but the participants to the trading market are considering that the European leaders are to find a solution to the sovereign debt crisis and that this solution is to be found before the crisis brings down Italy, Spain and possibly France as well. It seems that, at this moment, there are numerous efforts made in order to require recapitalization for banks. There is also a great focus Read more »

The European debt crisis aggravates from one day to another. As the Italian rating has been downgraded today, there are more and more concerns about the viability of the European Union. In order to try and find a solution to these problems, the finance ministers of the countries in the European Union met today to discuss the sovereign debt crisis issue, especially the situation in Greece, but the meeting ended with no noticeable results. All this indecisiveness of the European politicians had a very bad effect upon the European currency, which has recorded once more losses against its major counterparts. But this is not the only European currency which performed badly today, as the Swiss Franc also registered losses based on the speculation according to which the Swiss National Bank is going to impose new measures in order to prevent the overvaluation of the nation’s currency.

When it comes to the problems in the European Union, the most 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 »

The US Dollar fell against the Euro for the second day in a row due to the fact that the Moody’s Investor Service took the decision of putting the US credit rating under review for the first time since 1995. The US rating is now “Aaa”, but it is likely for the ones at Moody’s to downgraded due to the problems US is now confronted with, especially when it comes to statutory debt limit which the Congressmen may decide not to raise “on a timely basis” as to pay the interest, which would lead to a measure of downgrading the US Treasury debt obligations to the default level. This is due to the fact that the US President, Barack Obama, and the Congressmen have not yet been able to achieve an agreement concerning the raise of the $14.3 trillion federal debt limit and concerning the reduction of the country’s deficit. Ben Bernanke, the Chairman of the Federal Reserve, Read more »