FTSE extends losses as Eurozone debt fears grow July 12, 2011 FINANCIALS and commodity stocks led a sharp fall on Britain’s FTSE 100 yesterday as investors extended a recent sell-off on worries that Europe’s debt problems would spread beyond Greece, Portugal and Ireland. Eurozone finance ministers on Monday promised cheaper loans, longer maturities and a more flexible rescue fund in an effort to prevent debt contagion [...]
European fiscal worries push US stocks down July 12, 2011 US STOCKS closed lower for a third straight day yesterday as Europe’s fiscal woes and a weak start to tech earnings gave investors little reason to buy even after the recent losses. Moody’s downgrade of Ireland’s credit rating late in the session provided the latest jolt to stock investors, reminding them of the scope of [...]
Belgium may be the next domino to fall in crisis July 12, 2011 WHILE most of the focus of the Eurozone crisis has been on Portugal, Greece and Ireland, more countries are being drawn into the fray. Italy’s bond yields are spiking and governmentless Belgium seems overdue for a government bond rating downgrade. With a lack of faith in the euro, these worries are driving the Swiss franc [...]
A NEW PLAN FOR EUROZONE DEBT IS VITAL July 12, 2011 THERE is no doubt that the currency market is now at the mercy of the credit market. Fears about the growing contagion in the Eurozone have sent euro-dollar to fresh three month lows at the start of this week’s trade, with the pair dropping below $1.3850 in yesterday’s chaotic market open. Italy has become the [...]
THE TIPSTER July 12, 2011 STERLING isn’t faring well against the dollar and its case hasn’t been helped by the fact that UK house prices didn’t really improve in June. The pound is trending lower, and has broken through its previous support level of $1.5850, which is a negative signal. Capital Spreads quotes sterling-dollar at $1.5834-$1.5836. Risk aversion has been [...]
FOREX ANALYST PICKS July 12, 2011 FOREX STRATEGIST JOHN KICKLIGHTER My pick: Remain short sterling-dollar and short euro-dollar Expertise: Fundamental analysis with risk management Average time frame of trades: 1 day to 1 week Volatility has picked up to start this week, but it has only helped the setups I had from last week. The dollar-Swiss franc short from SFr0.8500 has [...]
Global recovery fears hit banks as they lead the FTSE lower July 11, 2011 CONCERNS over Europe’s debt crisis and the global economy sent Britain’s top shares sharply lower yesterday, leaving investors anxious for a strong earnings season to kick-start further buying of equities. The UK benchmark index ended down 61.42 points or one per cent at 5,929.16, its lowest close since 29 June, extending a 1.1 per cent [...]
Wall Street stock hits month’s low July 11, 2011 US stocks suffered their worst day in nearly a month yesterday as concern about the stalemate in US budget talks and growing debt problems in the Eurozone prompted investors to hedge against further losses. The S&P 500 dropped nearly 2 per cent on concerns that Europe’s debt crisis would spread to Italy. European officials were [...]
China’s economy looks to be on shaky ground July 11, 2011 INFLATION in China hasn’t been tamed. Statistics released at the weekend suggest annual inflation for June is running at 6.4 per cent, up from 5.5 per cent in May; while food inflation for June shot up 2.7 per cent on the month to 14.4 per cent. Tomorrow, China will release its GDP statistics, which are [...]
EQUITIES END THEIR RALLY ON BAD DATA July 11, 2011 GLOBAL stock indices have proved to be extremely resilient over the last couple of weeks, despite the uncertainties which continue to cloud the economic outlook. This strength has confounded many of us who thought that equities would struggle to make progress once the US Federal Reserve’s $600bn asset purchase programme concluded at the end of [...]