EURO FACES NEW TROUBLE OVER BAILOUT September 6, 2011 WE NEED a fiscal union,” declared Joaquin Almunia, the EU Competition Commissioner, and he couldn’t have been more right. Euro-dollar has declined more than 300 points since last week, as renewed concerns about the fiscal viability of the union have once again put pressure on the single currency. The latest troubles stemmed from Finland and [...]
THE TIPSTER September 6, 2011 THE Royal Bank of Australia left rates unchanged as expected this month, but Australian dollar-dollar traders are keen to sell any rallies in Aussie dollar as it heads towards $1.060-$1.0650. This is the site of the 50 and 100-day moving averages and support/resistance going back several months. Strong support may not come in again until [...]
FOREX ANALYST PICKS September 6, 2011 FOREX STRATEGIST JOHN KICKLIGHTER My pick: Long Aussie-Kiwi, long dollar-yen Expertise: Fundamental analysis with risk management Average time frame of trades: 1 day to 1 week The market finally took notice of the Eurozone’s financial troubles and the result was a sharp euro-dollar drop that easily hit reasonable targets. This pair could certainly do more; [...]
German voters won’t bankroll peripheral profligacy forever September 6, 2011 WHILE Greece and Italy continue to take a hammering in the bond markets, traders are today shifting their gaze to Germany, as its constitutional court decides on whether the bailouts are legal. Under article 103 of the Maastricht Treaty, “neither the Community or any other member state is liable for or can assume the commitments [...]
Not the end of the line for capitalism September 6, 2011 SAU, £20 Alex Singleton YOU might be forgiven for thinking that another book on the financial crisis was unnecessary. After all, Gordon Brown has already written a comprehensive tome. You know, the one in which he forgets about all the mistakes he made with regulation, congratulates himself for saving the world, and bangs on about [...]
The global capital market still changes lives September 6, 2011 THE pharaohs built their pyramids, gigantic tombs to propel themselves into a divine afterlife, colossal and as pointless as they were pointed. The Romans were more practical, and concentrated on useful things like aqueducts and roads, but which still served to remind the common people as they were using them of the greatness and superior [...]
FTSE at two-week low over poor data September 5, 2011 BRITAIN’S top share index was left nursing heavy losses yesterday after service sector data from China, the Eurozone and the UK intensified concerns the global economy is facing another recession. The FTSE 100 index ended down 189.45 points, or 3.6 per cent, at 5,102.58, its lowest close since 22 August, as global growth in services [...]
Eurozone worries dent bank shares September 5, 2011 EUROPEAN stocks tumbled four per cent yesterday, with banks plumbing a more than two-year low, as fears for the future of the Eurozone bubbled up against a background of weak economic growth and threats to the banking sector. The euro fell across the board, with peripheral Eurozone debt concerns and political uncertainty in Germany prompting [...]
UK’s economic outlook is increasingly weak September 5, 2011 THE UK’s economy is sick and the cheap fix of quantitative easing (QE) is being touted as the cure. The broad consensus was that yesterday’s Markit/Cips services purchasing managers’ index (PMI) was going to come in at around 54.0. It instead dropped off a small cliff, declining from 55.4 in July to 51.1 in August. [...]
HOPES OF QE3 CAN’T DISPEL THE US GLOOM September 5, 2011 AT THE beginning of last week, investors appeared to have regained their risk appetite. Although trading volumes were light, equities continued their recovery following the sharp sell-off in early August. As we approached month-end, buyers appeared confident that a near-term bottom for the major stock indices was in place. Yet most economic data releases continued [...]