Markets relax, a bit, on Italy crisis
The consensus in financial markets today seems to be that yesterday’s drop on fears that Italy was headed to a crisis that could shake the euro were a bit overstated. This isn’t to say that markets have concluded that the crisis is over–or never existed–just that it won’t bring the end of the EuroZone as we know it tomorrow.
Does today mark the end of the euro bounce?
A day with no news can be a meaningful indicator of the underlying trend in an asset and I think that’s what we’re seeing today with the dollar. I think we’re seeing the end of the euro bounce
Greek debt talks collapse after 30 minutes
Talks between Greece and the EuroGroup finance ministers collapsed today. Creditors are demanding that Greece agree to extend its current bailout package with the existing austerity measures intact before they will resume talks with Greece about any new financing. The new Greece government has branded this requirement as “absurd” and “unacceptable” and has refused to use the bailout package and austerity budget cuts negotiated by the last government as a basis for talks.
Greece threatens to exit the euro again
You’d think that the renewed possibility that Greece would exit the Euro if Prime Minister Antonio Samaras loses the snap election that he’s just called would have sent European stocks and the euro down further today. After all, if the Samaras government loses to a government led by Syriza, it’s likely that party will lead Greece out of the euro at a gallop
European Central bank raises interest rates and signals more increases ahead
This morning the European Central Bank raised its benchmark interest rate to 1.25% from 1.00%. The financial markets are now looking for another interest rate increase in a month or two and for two or more increases to 1.75% by the end of 2011.
So how long can this last? The odds in favor of this rally are better than you might think
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