Here’s an update on technicals, fundamentals and what’s going on in the markets.

In the US, Factory Orders, production leading indicator to value the new manufacturers’ orders over the past month, rise is expected from -0.4% up to 1.9%

Germany failed to cover a routine bond auction, and its yields began rising as well. Will the ECB embark on QE now? Spanish yields remain under control despite another problematic auction while Portugal got a rating downgrade. Greece still awaits aid. Apart from the debt crisis, PMIs provided more evidence of a recession, but at least the IFO survey was positive, but all in all, there are many reasons for continued drops.

In theUS, Revised University of Michigan (UoM) Consumer Sentiment, consumer’s survey to value the present and upcoming financial conditions over the last month, a rise from 57.5 points on September up to 58.2 points this time is likely. Meanwhile the Revised UoM Inflation Expectations is expected to remain 3.2% similar to the previous report.

The potential haircut for Greece can reach 60%. Bank recapitalization is between 100 and 200 billion euros, but the big dispute is about the EFSF bailout fund, its uses and its leverage. Germany and France are working on a solution. A happy compromise might not be sufficient to settle the markets.  Here are 4 reasons why the summit will fall short.

Here’s a quick update on technicals, fundamentals and what’s going on in the markets.

 In the US, Revised University of Michigan (UoM) Consumer Sentiment, monthly survey about to rise from 57.8 points to 57.9 points. Meanwhile the Revised UoM Inflation Expectations is expected 3.7% with no change from the previous time.

The big blow to the euro and to most currencies came from Ben Bernanke. The Fed announced “Operation Twist” but provided downbeat language on the economy and no further easing steps such as QE3. The impact of Bernanke on financial markets will likely accompany us for many months to come.

This week’s rate decision by the Federal Reserve might take away some of the attention from Europe. Greece has an impact also on major European banks, that had trouble with accessing dollar funding. The joint effort by 5 central banks, including the Fed and the ECB to supply dollar liquidity, gave a temporary boost to the common currency, but this seems like a preparation for the Greek default.

Here’s a quick update on technicals, fundamentals and what’s going on in the markets.