World Economic Forum (WEF) Annual Meetings – Day 2, this time is held in Davos for Bankers, Political, trade & finance Ministers and Commercial leaders from around 90 countries. Can influent market volatility.

In the US, New Home Sales, monthly indicator to value the number sold households, 313K is likely with no change from the previous month.

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.

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

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

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.

Jackson Hole Symposium (Day 1), Financial Symposium in Jackson Hole Wyoming for central bankers, finance ministers, academics, and worldwide economic market participants.

Merkel, Sarkozy and their colleagues decided on a new bailout package for Greece, including longer maturities, lower interest rates and some private sector participation, which is actually a default. In addition, the new powers of the EFSF will hopefully prevent further contagion. These are very meaningful steps, although more could be done.

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

There are too many doubts about the passage of the new austerity measures in the Greek parliament. In addition, banking trouble in Italy, one of the core countries, has also joined the problems in the Euro-zone. Where will this stop?