The euro rose today as the Governing Council of the European Central Bank will meet tomorrow and may find solution to the continuing problem with the sovereign-debt in Europe. The President of the ECB Jean-Claude Trichet hasn’t ruled out the possibility of increasing government bonds buying, though he remains reluctant to do so. The Stoxx Europe 600 index of stocks gained 0.7 percent. Despite today’s gains the analysts remain pessimistic about the shared European currency … “Euro Rises Before ECB Meeting, But Rally May Be Short-Lived”
Month: December 2010
Belgian Bond Yields On the Rise as Well
Belgium, the heart of the European Union, also suffers from significant debt, and it isn’t immune to contagion. The gap between Belgian 10 year bonds to the benchmark German bunds rose to 139 basis points. Bloomberg reports: “Belgium has moved to the foreground as investors ask themselves ‘who’s next?’ to ask for help,” said Carsten … “Belgian Bond Yields On the Rise as Well”
European Debt Troubles Drive CAD Higher vs. EUR, Lower vs. USD
The Canadian dollar fell against its US counterpart as the European debt troubles led to the risk aversion sentiment among the investors and after the report showed that Canada’s economic growth unexpectedly stalled. The Canadian gross domestic product declined 0.1 percent in September. It grew 0.3 percent in the month before and was expected to increase 0.1 percent in September. Canada’s current account deficit widened by C$4.6 billion to C$17.5 billion in the third … “European Debt Troubles Drive CAD Higher vs. EUR, Lower vs. USD”
Yen Gains on Volatility and Concerns About Europe & China
The Japanese yen surged on the concerns that Ireland’s bailout wouldn’t be able to contain the sovereign-debt problems from contaminating other European countries. The Standard & Poor’s signaled that it may downgrade Portugal’s credit rating as the country hasn’t increased its economic growth to outweigh the impact of the planned spending cuts. The investors also shunned the riskier assets, preferring the safer ones, because of the high volatility on the markets. The JPMorgan Chase & … “Yen Gains on Volatility and Concerns About Europe & China”