Risk appetite remains depressed today after heavy losses in the equity markets during the preceding European and US sessions. Among the hardest hit were the European bourses, with the FTSE closing -2.6%, DAX -3.4% and SMI -2.5%. Against the backdrop of a light economic calendar yesterday, there was increasing focus given to US fiscal negotiations; and as expected, the Congressional Super-Committee confirmed that no deal would be agreed. Impact on the financial markets was more limited than perhaps might have been expected, as this deadlock was already anticipated and indeed was one of the key motivations for S&P to downgrade the US credit rating back in August.
Newly appointed leaders of Greece, Italy and Spain are already working against the clock to meet investor demands for a solution to their respective debt situations, and to that end there are a number of key meetings between European officials scheduled in the coming days. Greek Prime Minister Papademos is due to meet Eurogroup Chairman Juncker today followed by the ECB President Draghi, while incumbent Italian PM Monti is slated to meet EU President Van Rompuy today, followed by Merkel and Sarkozy tomorrow. Between these engagements we would expect newswires to be cluttered with sound bites from various policymakers, but doubt that any clear and meaningful developments will be forthcoming.
Looking ahead to today’s economic data, the morning session will be dominated by Sweden’s October unemployment rate and Norway Q3 GDP; while the afternoon session includes the second reading of US Q3 GDP and Eurozone flash consumer confidence for November.
By
M.Zohaib Gadit
Forex Trading Consultant
Newly appointed leaders of Greece, Italy and Spain are already working against the clock to meet investor demands for a solution to their respective debt situations, and to that end there are a number of key meetings between European officials scheduled in the coming days. Greek Prime Minister Papademos is due to meet Eurogroup Chairman Juncker today followed by the ECB President Draghi, while incumbent Italian PM Monti is slated to meet EU President Van Rompuy today, followed by Merkel and Sarkozy tomorrow. Between these engagements we would expect newswires to be cluttered with sound bites from various policymakers, but doubt that any clear and meaningful developments will be forthcoming.
Looking ahead to today’s economic data, the morning session will be dominated by Sweden’s October unemployment rate and Norway Q3 GDP; while the afternoon session includes the second reading of US Q3 GDP and Eurozone flash consumer confidence for November.
By
M.Zohaib Gadit
Forex Trading Consultant
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