General News

Greek finance minister Evangelos Venizelos announced that his country will do “everything possible” to reach target budget levels and to prevent Greece from being made a “scapegoat” for the global economic crisis. Venizelos, who is also the deputy prime minister of Greece, promised that his country will always remain a member of the Euro zone. In order to allay investors’ fears, he said that the debt crisis will not lead to Greece leaving the currency union. “Greece wants this and will do this,” he said during an address in Washington today after taking part in the IMF and World Bank’s annual meetings. “We are ready to take the necessary measures and pay any political price” to improve the economy, the minister summed up. Greece still hasn’t met the conditions for the second tranche of an international emergency line of credit since questions remain about whether it can meet the conditions. DT Trading economists believe that Greece will begin restructuring its debt...

In morning trading in Europe today, stock indices bounced back from a two-year low after the G-20 countries pledged to provide a “firm and coordinated” answer to the problems facing the world economy. American futures garnered support while Asian stocks fell. Adidas AG (ADS) went up 2.9% after its main competitor Nike Inc surpassed its predicted annual sales and reported that the company’s profit exceeded estimates. The Rio Tinto Group nevertheless took a fall among commodity producers after bronze prices dropped. The Stoxx Europe 600 Index increased by 0.6% to 216.2 as of 9:20AM in London, although just yesterday it was down 4.6%. Futures on the Standard & Poor’s 500 Index increased 1% and the MSCI Asia Pacific Index fell 1%. Despite the rebound, DT Trading analysts are anticipating the markets to drop further as long as the threat of rolling back into an economic recession exists on both sides of the Atlantic. The correction that began at the end of the week...

Italy's credit rating was downgraded yesterday evening by ratings agency Standard & Poor's. This was Italy’s first downgrade in the past five years after Greece’s worsening financial situation has heightened concerns that the “Greek contagion” will also take hold of countries like Spain and Italy. S&P lowered the country’s rating from A+ to A, saying that the weakening economic growth, “fragile” government, and increased borrowing costs will create difficulties for decreasing the second largest debt burden in Europe. Yields on 10-year Italian bonds increased today by three basis points to 5.619%, which is 385 basis points more than yields on analogous German bonds. The European Central Bank had to buy Italian and Spanish bonds last month after their yields increased to a record high for the Euro amid fears that they will be the next victims of the two year-long debt crisis which led to bail-outs for Greece, Ireland, and Portugal. Another ratings agency, Moody’s Investors Service, will decide next month whether...

The Euro is losing value against the dollar for the second day in a row while Asian stocks plummeted after European politicians were unable to present a plan to put a halt to the region’s debt crisis. Gold prices increased and the dollar appreciated against most other major currencies. DT Trading experts report that the Euro had dropped 0.8% to 1.3689 as of 8:20AM in Hong Kong. The MSCI Asia Pacific Index dropped 0.6%, not accounting for Japan. Meanwhile, futures on the S&P 500 Index fell 1.3% and gold ascended 0.7%. The dollar index, which measures the value of the dollar against the currencies of six of the US’s main trading partners, increased 0.6%. EU finance ministers announced at their summit that the 18-month debt crisis is not leaving room for tax cuts or additional expenses for stimulating the economy, which is on the brink of stagnation. Economic reports on Germany this week show reduced investor confidence and a drop in...

Stocks rose yesterday during trading in America, boosting the Standard & Poor’s broad market index even higher for a third day in a row. The Euro also appreciated after the German and French leaders expressed support for Greece to stay in the Euro zone. Speculation also grew around the fact that China may help out the biggest European debtors. Italian and Spanish debt securities grew immediately after Zhang Xiaoqiang, the vice-chairman of the National Committee for Development and Reform, said that China is ready to buy bonds from countries suffering from the debt crisis. The S&P 500 rose 1.4%, closing at 1,188.68. At the same time, December futures on the index slid down less than 0.1% as of 7:21PM in New York. The Stoxx Europe 600 Index rose by 1.5%, while the Euro went up 0.6% to $1,3755. Yields on 10-year treasury bonds fell by one basis point to 1.98%. Oil futures fell 1.4% to reach $88.91 per barrel after...

According to a report published by the UK Bureau of National Statistics, the level of inflation in the country rose in August. The Consumer Price Index went up 4.5% in annual terms compared with July growth of 4.4%, and inflation was up 0.6% in the monthly dynamic. This time, 34 analysts guessed right with their predictions on this figure. Last week, the Bank of England decided to leave the country’s interest rate unchanged. Experts believe that this was not an easy decision for the Bank’s leadership to make. On the one hand, the UK’s economy needs the support of a low interest rate, but on the other hand, inflationary pressure twice the amount of the target level is interfering. After the inflation figure was released, the British pound garnered support. The results of yesterday’s auction of Italian government bonds were quite obvious: investors are still very careful and are demanding even more profits. Demand for Italian bonds was as low as...

While the markets were waiting for the European Economic and Financial Affairs Council meeting results, The Single currency has managed to ease back again versus the greenback under the pressure of having €2.5B EU Trade Balance deficit in July while the markets were waiting for €1.7B surplus from €1.5B deficit in June after it had failed to get over its previous resistance at 1.3935 falling below 1.377 whereas it has started its rising following the news of offering 3 months loans by the ECB for the European banks in an coordinated action with the Fed, SNB, BOE and BOJ for underpinning the US dollar liquidity into the European banking system for longer time as this has been allowed for just one week by the ECB. God willing, further EURUSD declining can meet over the short term supporting levels at 1.3702, 1.3635, 1.3554 then 1.3494 again whereas it has started to correct its loses reaching the current levels and the breaking of...

US stock marketswent up, European stock markets’ benchmark index rose from a two-year low, American treasuries fell after French banks put to rest rumors that they had no access to financing, and investors for their part detected signs of progress in efforts to curb the debt crisis in the Euro zone. The Standard & Poor’s 500 Index went up 0.9% at 4:00PM in New York. The Stoxx Europe 600 Index increased 0.9%. Shares of Societe Generale SA, which added 8.1% a day earlier, increased 15% while BNP Paribas SA added 7.2% after a 12% drawdown. What helped stocks go back up again were the announcements by these banks that they were able to finance their operations. Yields on 10-year American bonds immediately rose four basis points to 1.99% and oil futures rose 2.3%. The MSCI Emerging Markets Index fell, continuing its drop from its peak so far this year to 20%. German newspaper Rheinishce Zeitung reported that Germany’s Minister of Finance...

Managers on the US money market, headed by Vanguard Group Inc and Legg Mason Group Inc, are cutting loans to French banks so fervently, that it may force these banks to increase their capital by selling stocks, said William Prophet, an analyst with Deutsche Bank Securities Inc. Meanwhile, Italian officials, led by Prime Minister Silvio Berlusconi, conducted negotiations with their Chinese colleagues about potential investments in the EU’s third-largest economy. Signs of the “Greek contagion” are threatening to infect Italy and have pushed yields on the country’s bonds to a record high since the Euro zone’s creation. Berlusconi’s government swiftly passed a 54 billion Euro austerity package through parliament to convince the European Central Bank to buy its debt. But DT Trading analysts note that over 60 billion Euros spent on buying up European bonds the past five weeks have not convinced investors to buy Italian bonds. American funds are reducing their shares in European banks amid fears that financial institutes...

Friday was “black” for European stock markets – the leading indices crashed 3-4% while the Milan stock market fell almost 5%. The panic attack among investors was instigated by European Central Bank executive board member Jurgen Stark’s resignation, which reflects the conflict among the bank’s leadership over buying up obligations from the Euro zone’s most troubled countries. Differences of opinion among Europe’s politicians about how to cope with the crisis are growing stronger. Because of this, market players are dumping shares of banks since they would suffer first in the event of a default in Greece or any other Euro zone country.  Shares of the French bank Societe Generale dropped 10% in one session; the Euro rolled back to settle at $1.37. America is also bringing investors some additional disappointments: Fed Chairman Ben Bernanke’s address didn’t reveal any concrete plans for preventing the recession in the country’s economy. In response, oil dropped to its lowest level of the week - a barrel...