Markets started off on a predominantly soft tone this morning after the overnight downgrades of global banks by Standard and Poor’s, but central bank intervention on a co-ordinated scale saw the tide turn in a significantly positive fashion. This started with the Chinese central bank cutting its bank reserve requirement ratios by 50bps to 21%,...
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A choppy session saw the FTSE 100 swing between gains and losses of around 0.6% on the day. Traders gauged a rather uneventful Chancellors Autumn Statement, another Italian bond auction that saw yields rise sharply beyond the 7% level but was well supported and a meeting of Eurozone finance ministers in Brussels to agree...
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Last week saw risk aversion increase significantly as stock markets dropped dramatically however this week looks a little firmer. Articles in the Italian media have suggested that the International Monetary Fund (IMF) is preparing a €600 billion deal for Italy in the event of deterioration in the debt crisis and this could provide spread...
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The US dollar hasn’t done as well as the class-leading Japanese yen in the last seven days, but it has followed close behind. Disarray in Euroland continues to fuel demand for the two main safe-haven currencies. America’s economy has also helped the dollar’s case, delivering statistics that suggest improving conditions and increasing activity. Perversely, the...
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Stock markets recovered overnight despite a huge drop in the Dow Jones, but markets remain nervous and the rebound in risk assets could be brief. A disappointing bond auction yesterday in Germany was a reminder to everyone of the seriousness of contagion across the Eurozone. The reason for concern is if the core is...
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Compare and contrast: the interest rate on the three month note issues by the Spanish yesterday was 5.11%, the interest rate on the US equivalent was 0.01%. Spanish borrowing costs jumped from last month’s auction partly because we are in-between governments and the incoming party is still unsure if it will be able to...
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