LONDON, May 26- Sterling rose to a 2-1/ 2 month high against a struggling euro on Tuesday, with the single currency weighed down by Greece's debt problems and interest rate differentials moving in favour of the British pound. It was last trading at 70.87 pence, down 0.1 percent on the day, having been hit in recent days by a senior European Central Bank official who...» Read More
America and China have a problem. A very big multi-trillion dollar problem that shows no sign of going away whatever the financial crisis throws at it.
Talk of the perils of dollar weakness has been exaggerated for three decades—and in that way are somewhat comical--while predictions of its demise as the reserve currency is premature. The dollar saga is also the stuff of a short memory.
Australia's rate hike may not signal a stampede to raise rates. But smaller central banks could be tempted to tighten sooner rather than later.
Stocks tumbled on the first day of the quarter and Dave Rovelli, managing director at Canaccord Adams, and Warren Meyers, CEO of Walter J. Dowd, said this may be an opportunity for bears to seize control.
The S&P 500 could continue to push higher as investors "climb a wall of worry," said Phil Roberts from Barclays Capital.
Oil prices are coming down from August highs, while the Standard & Poor's 500 index is approaching levels where it will find it hard to move higher, Chris Locke, managing director at Oystertrade.com Management, told CNBC Wednesday.
The economic recovery may be sharper than many forecasters, including the International Monetary Fund, have predicted, precisely because the recession was so deep, Michael Mussa, senior fellow, Peterson Institute for International Economics, told CNBC.com.
The Federal Reserve will have to raise interest rates as aggressively as it cut them when it becomes clear the economic recovery has taken hold, to avoid flaring up inflation, Charles Plosser, president of the Philadelphia Fed, told CNBC in an interview.
The stock market rally we have experienced since hitting the lows in March is over and stocks could retest those lows in the future as further problems loom for the financial sector, Chris Locke, managing director at Oystertrade.com Management, said Wednesday.
Gold's "breaking out" to a higher level as imminent, Chris Locke, managing director at Oystertrade.com Management, told CNBC Wednesday, as other analysts have said the precious metal could shine again as inflation fears resurface.
Global stocks began the day higher, with Asian markets jumping more than 2 percent, lifting world shares to a 10-month high. Oil prices also climbed towards a 10-month peak and copper futures rose on hopes the global economic recovery is picking up steam.
Global stocks rose Thursday, with China's benchmark market making its second biggest gain this year. Experts tell CNBC another leg down in the markets is unlikely.
Forex strategists Alan Ruskin of Royal Bank of Scotland and Mike Moran of Standard Chartered Bank discussed where the U.S. dollar is headed and where investors should be looking to maximize their profits.
Global stocks rose Tuesday, clawing their way back from the previous day's lows. Experts tell CNBC that although the market is due for a slight correction, there is still value in large-cap stocks and copper.
The correlation between the dollar and the stock market is still there, Chris Zwermann from Zwermann Financial said Monday. He sees a weakening U.S. dollar-Japanese yen cross pulling stock markets lower, with the Dow falling below the 9,000 mark.
Global stocks were lower Monday, with Asian markets falling to their lowest in two weeks, as investors raked in profits amid gloomy U.S. consumer data and a growing belief that market valuations had overtaken economic fundamentals.
Prices in the 16 countries that use the euro fell on an annual basis for the second straight month in July and by more than previously anticipated, official figures showed Friday.
The dollar bulls may finally get the upper hand as it becomes clear to investors that the euro zone is behind the U.S. and the U.K. in its economic recovery prospects, Jane Foley, currencies analyst at Forex.com, told CNBC Tuesday.
"We think this is going to be a W-shaped recovery in terms of the equity markets and we are now in the top part of the middle part of the ‘W’,” Emily Saunders, CEO of Sanders Financial Management.
From a technical perspective, the dollar is likely to trade lower for some time, as the euro, along with stock markets, may have entered a bull market, Chris Zwermann, global strategist at Zwermann Financial said Thursday.