Tag Archives: european
Surprise Rise in German Business Confidence
An increase in the Ifo Business Climate Index which measures the confidence level of German businesses, caught market watchers by surprise, rising to 106.9, up from 106.2 in July. Most analysts predicted a decrease in the index. The news of German confidence has strengthened the European currency. Continue reading
EU OKs 2nd Tranche of Greek Rescue Loan
The European Commission said today that recent efforts by Greece to reduce its deficit has warranted releasing the next round of emergency funding. Greece has already received 20 billion euros (US$25.7 bn) of the 91 billion euros (US$145 bn) pledged in rescue loans Continue reading
EU Growth expands
Europe’s economy expanded more than economists forecast in the second quarter as the fastest growth in Germany in two decades powered the region’s recovery. Continue reading
Irish Borrowing costs ridiculous
Central Bank governor Patrick Honohan has described Irish bond market spreads as a “setback”. Irish bonds spreads widened after the European Commission approved the Government’s move to raise the level of capital it can inject into Anglo Irish Bank. “The spreads are a setback for our hopes of a narrowing to reflect the fiscal credibility of the country,” Mr Honohan told the Daily Telegraph Continue reading
Greece sinks another -1.5%
The Greek economy shrank by a further 1.5% in the second quarter of the year, Greece’s statistics agency has said. That adds to 0.8% decline in GDP recorded for the first three months of the year, suggesting that the decline in the economy is speeding up Continue reading
Suspend Your Disbelief!
One of the things I mentioned on Friday with regard to the European bank stress tests is that they had to be believable. The results came in on Friday and by and large were viewed as positive by the market. There was some interesting volatility in the forex market, as the news trickled in and was digested. Continue reading
Spain Conducts Successful Bond Sale
Following Greece’s lead earlier this week, Spain has concluded a successful bond sale. All 3 billion euros ($3.8 billion) of 15-year bonds offered by Spain were sold and analysts say the strong demand for the bonds should ease concern over Spain’s ability to cover its debt payments. Continue reading
Is Trichet any good at liar’s poker?
The FX market is trading with a lack of conviction and with investors trapped in ‘no-mans land’. In a matter of days the dollar has lost its safe haven status. It’s true that US data is a tad softer, but the economic landscape just does not change that quickly, only sentiment does. Continue reading
Greece On Track to Meet Deficit Targets
Greece’s Finance Minister announced today that Greece has cut its deficit by 42 percent so far this year. George Papaconstantinou went on to say that Greece is actually exceeding the deficit reduction targets imposed by the International Monetary Fund and the European Union in return for emergency funding of 110 billion euros (US$138 billion) provided earlier this year. Information supplied by the Greek Central Bank, indicates that government debt, which stood at 19 billion euros (US$23.9 billion) one year ago, has been cut to 11.5 billion euros (US$14.4 billion) Continue reading