Surfing the yield curve: Someone is buying an awful lot of European debt recently, particularly at the short end. Huh? Isn't European debt toxic? Well, sort of. But the ECB will have a new long term lending facility (up to 3 years) that will soon come into effect. This was all part of the announcement last week.
U.S. futures are up following yesterday's gains. European shares rise, led by mining stocks. Fitch downgrades Goldman Sachs, Deutsche Bank, Credit Suisse, BNP Paribas and Barclays. The euro is off its 11-month low. Italian PM Monti faces a confidence vote on a 33 billion euro austerity package. And gold rebounds while crude stays steady. In Asia, better-than-expected U.S. economic data lifts the markets in a mixed session.
An extended bank holiday in the European Union to halt a steep market fall, a third party candidate winning the race for the White House, and 50 European banks being nationalized are just a few of Saxo Bank's "outrageous predictions" for 2012.
With one final shopping week to go, investors will be keeping their eye on the consumer to see how holiday sales shake out and what it might mean for the economy.
The news that European banks will now be able to borrow euros for three-year terms by posting a broad array of collateral is the best sign so far the European Central Bank is recognizing that the continent is experiencing an extreme monetary contraction.
Although most of the other troubled European countries may not have the same degree of tax evasion and nepotism that Greece has, each of these countries will be forced to implement painful reforms that are likely to endanger the jobs of many European politicians.
The euro has been trading in tandem with key commodity currencies, but that could change - and create trading opportunities.
European markets have a mostly green day after upbeat U.S. economic data -- insurance stocks are among the day's best performers. Credit Agricole falls after Fitch downgrades its long-term rating. Italy calls for a Friday confidence vote in effort to speed up austerity passage. And the IMF's Christine LaGarde says the world economic outlook is "quite gloomy" and requires action by countries outside the EU. Henry McVey, KKR head of global macro and asset allocation, discusses his investment strategy for a tu
S&P futures popped a few points as initial jobless claims came in at 366,000, below expectations and the lowest level since May 2008. The regional Empire Manufacturing Index was also stronger than expected for December.
Italy's government has called for a vote of confidence on an austerity package aimed at persuading markets that Italy can get its finances under control to emerge from the spiraling debt crisis.
European markets rebound, although euro zone concerns remain. Manufacturing data continues to contract. Meanwhile, Spain finds strong demand for bonds even as yields on the 5-year fall. And the euro hits an 11-month low against the dollar.
The euro zone should be reduced from its current size with those countries currently experiencing difficulties seeking external solutions, Hans Werner-Sinn, president of the IFO Institute, told CNBC Thursday.
The negativity that’s driving the euro lower could keep pressure on stocks and commodities prices Thursday.
Think the euro's had enough of a fall? Think again, this strategist says.
The euro is down 2.6% in just two days - a huge move for a currency - and this strategist sees more weakness ahead. With the euro nosing below the 1.30 level against the dollar, is the worst over?
How to trade the euro as it moves lower, with Todd Gordon, Aspen Trading Group co-head of research/trading.
The euro is having another lousy day, breaking right through $1.30 on the euro-dollar, now approaching the lows for the year that we last saw in January. The immediate cause was Italy's five year bond auction, which cost them a record 6.47 percent. They paid 6.3 percent in November.
The fact that economies across are stalling at the same time many European governments are finding it hard to sell bonds is a bit of a mystery.
European policymakers are taking a page out of the American playbook to address their sovereign debt crisis, banking analyst Dick Bove said.
"Europe is going into recession and the ripple effect on global growth next year is the story," says strategist Peter Boockvar. "To think we can avoid it is delusional."