Post Tagged with: "Aussie"
Back on the slippery slope
After reaching its highest level since mid-December, euro-bulls beat a hasty retreat during the London trading session yesterday. There were numerous issues to worry about, including the CDU’s decision to scupper Angela Merkel’s idea that the EFSF and ESM could run in parallel, the German proposal to appoint an EU budget commissioner to veto tax
The UK’s place on the outside is a comfortable one (Video)
Much is being made of the UK’s refusal to be taken along with a new treaty change, meaning that the 17 eurozone members must go it alone (although some other euro ‘outs’ may be included), but this should be welcomed from all sides. Given the extensive provisions on monitoring, sanctions and (hopefully) a path towards
Australian Dollar Recovers From Rate Cut
The RBA cut the interest rate in Australia by 0.25% to 4.25%, in a move that was widely expected. This is the second cut in a row. Glenn Stevens and his colleagues cut the rates from 4.75% to 4.50% on November 1st. The Aussie took a dive following this move, but it found support and
A synchronised slowdown
With the latest PMI reading in China back below the crucial 50 level, overnight markets have become more concerned at the increasingly synchronous nature of the global business cycle. During the period 2007-2010, G7 output contracted by 1% in real terms. Meanwhile, the BRICs (Brazil, Russia, India, China) saw output increase 24% over this period.
The great divide
The air of calm that pervaded the start of the week lasted barely for a few hours. By yesterday, it has morphed into a full scale rout in European bonds that saw spreads to Germany widen out once again. Banks are taking any opportunity to sell and the decline in liquidity as year-end approaches will
Berlusconi down – markets up
It’s a damning indictment of what low regard politicians are held in when for the second time in a week we’ve seen markets rally on the resignation of a prime minister (first Greece, now Italy). And not just domestic markets; even US stocks squeezed out a 0.5% rally on the news. From here, it’s a
Greece aims to shoot itself in the foot
Last week’s EU agreement was just about holding together until last night, when Greece threw in the curve-ball of announcing a referendum on the deal. Many Greeks feel that the option of full default, letting the bond-holders take the full hit is better than the restructuring currently being negotiated and the years of austerity currently
Almost progress for Europe
After an all-nighter in Brussels, European leaders have finally announced a package of measures which they hope will placate the concerns of investors and traders regarding the sovereign debt and banking crisis. The package has three major components – the firepower of the EFSF has allegedly been raised to EUR 1.4trln, Greek debt-holders have apparently
Aussie defiance
It could be argued that it has been a terrible month for the Aussie. The economy down under is clearly slowing, there is speculation that the RBA might even lower rates before the end of the year, house prices are declining, some of the world’s major advanced economies may be lurching back into recession and
The dog that may not bark
The political train-wreck in the US is proving to be a win-win for the US bond market, even though a downgrade is looking ever more likely. Charts of how Japan and Canada were downgraded years ago and still saw yields decline have been trotted out, but these totally miss the point with regards to the