NEW YORK, March 7- A surprisingly strong U.S. jobs report on Friday sent bond and gold prices sharply lower and initially lifted equity markets, but mounting tensions over Ukraine led stocks in Europe and elsewhere to retreat, while U.S. shares ended little changed.» Read More
Another solid close for European bourses today, with many markets closing at or near session highs.
Carthaginian peace refers to the imposition of a very brutal “peace,” or the armistice imposed on Carthage by Rome that saw the Romans systematically burn Carthage to the ground.
Despite a fully-fledged debt crisis in Europe, the stock market continues to defy the bears to trade higher on the year.
What the European leaders really meant to do with their big-bang, trillion-dollar sovereign-debt rescue was to save the euro currency, not to bury it. But with the cave in by European Central Bank head Jean-Claude Trichet (formerly a hard-money man and closet gold watcher) to use the "nuclear option" to buy up dubious sovereign debt, the euro is likely to keep depreciating.
Recall that many global markets and several sectors hit highs in April - before accumulating losses through Friday's trading.
Twenty-seven European nations and the IMF agreed to a mammoth E750 billion plan to stabilize the financial markets.
It was pretty wild out there. But instead of chalking this up as simply panic in the market, we should see it as a huge wake up call. All is not well.
Panic has gripped stock markets worldwide over the Greek debt crisis and the threat of a debt-deflation contagion through banks in Europe (primarily) and the U.S. that own the bonds of Greece, Portugal, Spain, and so forth. If these bond asset prices collapse totally, lending facilities would be badly crimped for both the short and long term.
Lazard has been hired to assist Greece with its finances. The speculation is Lazard has been hired to assist Greece with a restructuring of its debt. That, of course, has been denied. These guys always deny, deny, deny until it's done.
Once passed, the bill will be signed into law and then presented to the Euro Zone meeting on Friday night. There is likely to be a constitutional challenge to the agreement, but this will not impede the flow of money to Greece.
The ink was barely dry on the $150 billion EU/IMF bailout of Greece when world stock markets tanked on two major fears.
Last Friday, I stated that the vote this week on Friday in Germany was analogous to what occurred in the US Congress leading up to the TARP vote. The uncertainty would drive down the Euro and raise questions over the viability of the union. Now, we’re seeing another aspect arise: attempting to scare the German politicians into voting yes.
The market is already beginning to ask if the German public and the EU have the stomach for a rescue package for Portugal, Spain, Ireland and even for Italy.
The Greek debt crisis is beginning to take a back seat, while the earnings season has got off to a solid start, therefore stocks are once again a good place for investors, Bruno Verstraete, CEO of Nautilus Invest in Zurich, told CNBC Tuesday.
Despite yields on Greek debt falling after the bailout deal, analysts and investors warn that there are still pitfalls that could threaten the single European currency.
European officials are finally getting spurred into action by the danger of contagion and sources in the City say Greek debt is a screaming buy.
A lack of competitiveness, not credit default swaps (CDS), brought Greece to the brink of financial catastrophe, former Greek Finance Minister Yannos Papantoniou told CNBC.com Wednesday.
The market reaction to the debt crisis in Greece and the euro zone has spooked investors across the world and led to heavy selling of stocks. But is the crisis actually impacting real businesses, given Greece makes up only two percent of euro zone gross domestic product?
Germany's reticence to come to the rescue of the Greek government has been widely criticised across the euro zone.
Whispers of contagion are sending a chill through bond markets, while the euro is likely to fall further and things don't look pretty for stocks. Smart money is likely to go into gold.