The EU bailout for Irish banks failed to quell financial markets. Borrowing costs for Portugal, Spain and others continue to rise, because structural problems created by the euro and single European market remain unaddressed and more crises are inevitable.
A look at recent German headlines shows the difficulty the government of the euro zone’ biggest country faces in satisfying both the demands of its euro zone partners and those of its citizens.
European shares were set to rise Tuesday, bouncing back from seven-week closing lows in the previous session on worries about the euro zone debt crisis, after Wall Street cut its losses.
Europe's sovereign debt woes will continue to tug at markets, as investors Tuesday also get a few new pieces of U.S. economic data and hear from Fed Chairman Ben Bernanke on the economy.
Stocks declined, but ended significantly off session lows, as financials gained and the dollar slipped, although investors remained concerned about the effectiveness of Europe's attempt to contain sovereign debt troubles. HP and Home Depot fell, while AmEx and BofA rose.
Stocks came back from session lows as financials gained, although the market remained lower amid continuing fears about Europe's ability to harness a credit crisis despite a weekend bailout agreement for Ireland. HP and Home Depot fell, while AmEx and BofA rose.
Earlier this morning, Nouriel Roubini sent out this tweet: "Greece & Ireland are solvency not liquidity."
There are clearly two perspectives emerging on Europe's problems and this chasm in perspectives will become more clear as time goes by. The budget minded nations are reigning in the less disciplined sovereigns. Solvent Europe vs. broke member nations.
Stocks sank Monday as a strong start to the December holiday shopping season failed to counter investor concerns about the wider implications of debt burdens throughout Europe even as a final agreement was reached on Ireland's bailout fund. HP and Boeing slumped, while Bank of America rose.
Ireland, North and South Korea, Congress and more - here's what you need to know for this week.
U.S. stock index futures slid deeper into negative territory ahead of the open Monday as a final agreement on Ireland's bailout fund failed to lift investor sentiment.
The premium investors demand to hold Belgian government bonds rather than benchmark German debt rose to its widest level since early 2009 on Monday as the country issued 2 billion euros of 2014, 2020 and 2035-dated bonds.
Economist Nouriel Roubini says Portugal should consider asking for a bailout before its financial plight worsens.
European shares were indicated higher Monday, expected to reverse some of last week's losses after the European Union agreed an 85 billion euros ($113 billion) bailout for Ireland at the weekend.
According to a statement released by the Irish government, the country will take €10 billion immediately to boost the capital reserves of its banks. Another €25 billion earmarked for the banks will remain in reserve.
An Irish government minister said he expects an agreement on an EU-IMF bailout loan for Ireland worth approximately €85 billion ($115 billion), but he rejected reports that the aid would carry a punitively high interest rate.
Next week brings November's employment report, a critical bit of data in a week likely to be dominated by readings on the U.S. economy and the developing debt crisis in Europe.
Ireland's banks suffered a string of credit downgrades Friday—one reduced to junk-bond status —as speculation mounted that an EU-IMF bailout of Ireland could require senior bondholders to share the massive bill.
While the market pullback isn't even in the realm of a correction, worries that Europe's debt crisis could hurt the global economy are weighing on what otherwise could be a robust rally.
Here's the disturbing headline statistic: Portugal, Ireland, Greece, and Spain have sucked out 93 percent of the total liquidity taken from the ECB and other central banks.