World Economic Forum (WEF) Annual Meetings – Day 3, this time is held in Davos for Bankers, Political, trade & finance Ministers and Commercial leaders from around 90 countries. Can influent market volatility.

After talks about the Greek haircut broke down last week, they resumed and apparently yielded a deal. Also Spain’s auctions distanced it from the danger zone and helped the euro. Yet in Greece’s case, it’s important to remember that a 50% haircut isn’t a 50% reduction of debt, and that only the fragile banks will suffer and not the ECB. Not yet.

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

In the US, Unemployment Claims, weekly report for the new unemployment insurance, due to rise from 364K up to 372K.

The ECB weighed in with its massive loans to the banks: more than 500 European banks took loans that reached around 489 billion euros. The optimism from this large operation was short-lived. Peripheral bonds cannot really calm down without direct buying from the ECB.

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.

In the US, Unemployment Claims, weekly report to value the unemployment that filed for insurance, is about to rise by 1K up to 404K this week.

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.