Posts Tagged euro
Sarkozy Says EU Must Back Greece
Posted by Tetyana Matychak in Favourites, Trading Markets on March 8th, 2010
French President Nicolas Sarkozy said the European Union must support Greece or risk destroying the euro as Prime Minister George Papandreou heads for Paris to lobby support for the debt-laden country.
“If we created the euro, we cannot let a country fall that is in the eurozone,” said Sarkozy, who hosts Papandreou in Paris tomorrow. “Otherwise there was no point in creating the euro. We must support Greece because they are making an effort.”
EU leaders have so far refused to give financial aid to Greece and have ordered the government to cut its budget deficit, the EU’s highest, on its own. While Papandreou says steps taken this past week to slash the shortfall warrant more help from the EU, German Foreign Minister Guido Westerwelle said today that his country is “not going to write a blank check.”
Papandreou is touring Luxembourg, Berlin, Paris and Washington after his government passed a 4.8 billion euro ($6.5 billion) austerity package yesterday. German Chancellor Angela Merkel, who met him yesterday, said the question of a bailout “absolutely doesn’t arise” and the steps taken to cut the deficit make her optimistic that a rescue won’t be needed. Read the rest of this entry »
Stocks Climb on Evidence Global Economy Recovering
Posted by Tetyana Matychak in Fund Markets on December 23rd, 2009
Stocks rose around the world, driving Europe’s Dow Jones Stoxx 600 Index to a 14-month high, on evidence that the global economy is recovering from its recession. Oil and copper advanced.
The MSCI World Index of developed-nation shares climbed 0.3 percent at 9:41 a.m. in London. Futures on the Standard & Poor’s 500 Index added 0.3 percent and the MSCI Asia Pacific Index increased 0.5 percent. Oil gained 0.6 percent in New York, while the dollar traded near a three-month high against the euro.
U.S. consumer spending probably rose in November for the sixth time in seven months as households took advantage of holiday discounting, economists said before reports today. China’s growth may surge to as much as 12 percent next year, according to Citic Securities Co., the nation’s biggest listed brokerage. Consumer confidence in Italy unexpectedly rose in December to the highest in more than seven years after Europe’s fourth-biggest economy emerged from a recession.
“The path of least resistance will continue to be to the upside,” Robert Doll, who helps oversee about $3.2 trillion as chief investment officer for global equities at New York-based BlackRock Inc., said in a Bloomberg Television interview. The economic recovery “means earnings should be somewhat better and liquidity should still be plentiful. That’s a recipe for equities moving higher,” Doll said. Read the rest of this entry »
US Dollar Likely to Continue Upward Swing This Week
Posted by Tetyana Matychak in Currency on December 21st, 2009
The dollar is likely to extend gains in the upcoming week, continuing to draw support from growing signs of a stable U.S. recovery as well as a Federal Reserve plan to wind down most of its emergency lending early next year.
Both factors have pushed the market’s U.S. interest rate expectations forward despite pronouncements from the Fed that it will keep interest rates low for an extended period.
The rate futures market Friday has priced in at least one quarter-point rate increase by the beginning of the second half next year. A few months ago, futures traders had factored in Fed tightening late in 2010.
“We see the U.S. economy continuing to recover and monetary policy settings starting to move back to normal,” said Nick Bennenbroek, head of FX strategy at Wells Fargo in New York.
“Although our economics team does not expect actual rate tightening to take place until late in 2010, the withdrawal of non-conventional measures could start tipping the scales in the dollar’s favor,” he added. Read the rest of this entry »
Stocks Rise, Default Swaps, Dollar Drop Following Dubai Bailout
Posted by Tetyana Matychak in Fund Markets on December 14th, 2009
Stocks rose as Abu Dhabi bailed out Dubai’s Nakheel PJSC and Exxon Mobil Corp. agreed to buy XTO Energy Inc. for $31 billion. The cost to protect U.S. corporate bonds from default fell to a 12-week low, while the dollar slipped and oil and Treasuries were little changed.
The Standard & Poor’s 500 Index climbed 0.5 percent to 1,111.73 at 10:55 a.m. in New York for a fourth straight advance, its longest streak in a month. Dubai’s equity index jumped 10 percent, the most in 14 months. The dollar weakened against 10 of 16 major currencies tracked by Bloomberg, while the euro strengthened against the dollar and pound as concern eased that Europe’s biggest banks will write down Dubai loans.
Abu Dhabi’s pledge reassured investors who had sent stock markets tumbling last month on concern defaults would slow the global economic recovery. Greek Prime Minister George Papandreou may announce measures to cut the European Union’s biggest budget deficit later today after the nation’s bonds plunged to their lowest levels in seven months last week.
Dubai’s bailout “puts to rest any lingering fears that might have existed about possible contagion,” Tim Condon, head of Asia credit research for ING Groep NV in Singapore, said in an interview. “It’s inevitable that we’re going to see a few more incidents of credit stress show up in both banks and corporates, but in terms of it becoming a macroeconomic issue I think Dubai World was as close as we were going to get.” Read the rest of this entry »
German Business Confidence Rises More Than Forecast
Posted by Tetyana Matychak in Trading Markets on November 23rd, 2009
German business confidence increased more than economists forecast to a 15-month high in November, suggesting the economic recovery may gather pace next year.
The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, rose to 93.9 from 92 in October, the highest reading since August last year. Economists expected a gain to 92.5, according to the median of 37 forecasts in a Bloomberg survey. The index reached a 26-year low of 82.2 in March.
Economic growth accelerated in the third quarter as companies replenished inventories and rising export orders prompted factories to ramp up production. The manufacturing industry expanded for a second month in November and the country’s benchmark DAX share index has advanced 20 percent this year. Unemployment, the euro’s strength and the expiry of government stimulus measures may still damp growth in 2010.
Ifo’s “sharper than expected rise” is “another encouraging sign that the economy continued to expand in the fourth quarter,” said Jennifer McKeown, an economist at Capital Economics Ltd in London. “We expect Germany to lead the euro- zone recovery.” Read the rest of this entry »
WORLD FOREX: Euro Choppy After Middling US Retail Sales Data
Posted by Tetyana Matychak in Currency, Favourites on November 17th, 2009
The euro traded in choppy waters early in New York Monday, after a slight improvement in U.S. retail sales failed to spark an extension of its overnight gains.
The retail sales report came on the heels of data that showed an expansion in Japanese economic activity, which set the stage for the euro and other higher-yielding currencies to rise against the low-yielding dollar.
But until more convincing data supporting the global economic recovery are released, the euro and its higher-yielding counterparts are likely to remain in their recent ranges, analysts said.
With the morning’s U.S. economic reports out of the way, attention will shift to the 12:15 p.m. EST speech of Federal Reserve Chairman Ben Bernanke in New York for clues as to any changes in monetary policy or the state of the U.S. economy. Read the rest of this entry »
Euro Advances Against Yen, Dollar on Signs of Economic Recovery
Posted by Tetyana Matychak in Currency, Favourites on November 2nd, 2009
The euro rose against the yen and the dollar as signs the global economy is recovering trimmed demand for the relative safety of the U.S. and Japanese currencies.
The Australian dollar climbed against all 16 most-traded currencies as Treasurer Wayne Swan said economic growth will be faster than expected and a government report showed house price increases accelerated. Japan’s currency earlier rose to the strongest level in three weeks against the dollar and the euro after New York-based CIT Group Inc. filed for bankruptcy.
“Global data still suggest that the economy is on the mend,” said Minoru Shioiri, chief manager of foreign exchange trading at Mitsubishi UFJ Securities Co. “The underlying need to invest in higher-yielding currencies through carry trades remains intact.”
The euro earlier fell to 131.01 yen, the least since Oct. 9, before trading at 132.91 as of 7:34 a.m. in London from 132.61 in New York on Oct. 30. The yen was little changed at 90.12 per dollar, after touching 89.20, the strongest level since Oct. 14.
Japan’s currency slid to 81.47 per Australian dollar from 81.05 last week, after rising to 79.47, the most since Oct. 8. Australia’s currency fetched 90.42 U.S. cents from 89.97 cents. New Zealand’s dollar was at 72.02 U.S. cents from 71.81 cents last week. Read the rest of this entry »
Euro weakens as European Union grows wary of currency’s rise
Posted by Tetyana Matychak in Currency on October 2nd, 2009
The U.S. dollar was on the rise Thursday, gaining ground versus the euro after European Union officials signaled discomfort with the single currency’s recent rise.
According to news reports, E.U. Economic and Monetary Affairs Commissioner Joaquin Almunia said finance ministers from the 16 nations that share the euro would discuss the currency’s rise in order to prepare a common position ahead of a meeting of Group of Seven officials in Istanbul this weekend.
The move sent the euro tumbling through the $1.46 level versus the dollar. Following on the heels of similar remarks by French President Nicolas Sarkozy at the Group of 20 summit in Pittsburgh last week, the remarks indicate European authorities are becoming increasingly worried about the euro’s ongoing rise versus the dollar, said Boris Schlossberg, director of currency research at GFT.
The euro (CUR_EURUSD 1.46, -0.01, -0.53%) traded at $1.4546, down from $1.4634 in afternoon trade in New York Wednesday. The single currency notched new one-year highs versus the dollar last month and rose 3.9% in the third quarter.
The euro had traded below $1.25 in March, before beginning a steady upward March as global equity markets began a rebound and investors showed a steady rise in risk appetite. Read the rest of this entry »
Futures Fall Ahead of Data Deluge
Posted by Tetyana Matychak in Fund Markets on October 1st, 2009
U.S. stocks futures are indicating a lower open Thursday as investors paused for breath ahead of a flood of economic data.
Less than two hours before the start of trading, Dow Jones Industrial Average futures were 46 points lower at 9607. The S&P 500 futures slipped 5.4 to 1047.5, and Nasdaq 100 futures lost 8.75 to 1708.75. Changes in futures do not always accurately predict early market moves after the opening bell.
U.S. stocks weakened Wednesday on the final day of the third quarter, with the Dow Jones Industrial Average retreating 30 points, the Nasdaq Composite losing 2 points and the S&P 500 slipping 4 points. Weak economic data on jobs and a Chicago-area poll contributed to the bearish tone.
However, the stock market ended near its highs for the year, with many of the riskiest stocks leading the charge.
As the curtain goes up on the fourth quarter Thursday, investors are bracing for a deluge of economic releases. The Labor Department has its weekly jobless claims report and the National Association of Realtors has pending home sales figures. Personal income and the related PCE deflation inflation gauge for August, the Institute for Supply Management’s manufacturing gauge for September, construction spending for August and car sales data for September are also expected. Read the rest of this entry »
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