Encouraging News for Europe - page 7
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hi all
Both currencies still in daily uptrend now
..turning back to MA 150 after several days in a downtrend....just my analysis 
hope will help
ECB Meeting Getting Closer, Along with a Decision on Greece
Yesterday, it was reported that Finland will receive the collateral it demanded as a condition of providing aid to Greece. The Finnish government was able to secure the collateral, but it won’t protect the country’s taxpayers from having to pitch in for financing a second wave of the crisis. “The value of the deal is in the eye of the beholder,” said Ville Pernaa, director of the Parliamentarianism at the University of Turku. “But this isn’t really what Finland sought to begin with.” The issue is that the government’s refusal to develop a plan for Finland to assist Greece that was more advantageous to the Finnish electorate could inflame talks between skeptics within the country that hold the third biggest bloc in parliament.
The “True Finns” party, led by Timo Soini, which is directly encouraging Greece to default and to admit that the Euro is a failed experiment, is the second most popular party in the country after the National Coalition led by Prime Minister Jyrki Katainen (according to a recent poll by Finnish newspaper Helsingin Sanomat). This morning, European stock indexes finally rose for the first time in four days amid speculation that politicians are reviewing measures to protect banks from the sovereign debt crisis. Asian stocks and futures on US indexes however, fell.
Shares of the Belgian bank Dexia SA (DEXB) rose 3.2% after France and Belgium announced that the “bad bank” will get the chance to get rid of its troubled assets. Shares of the mining sector company Rio Tinto Group have gone up since bronze finally put a stop to its five-day drop. Shares in the European Aerospace Group increased by 1% after the company reported that 2011 will turn out to be a “very good” year.
The Stoxx Europe 600 Index added 0.9% to reach 219.48 by 9:00AM in London after falling 5% over the previous three days. The index’s drop leaves it as before close to its all-time low from March 2009.
The MSCI Asia Pacific Index slipped 0.3% today at the same time that futures on the Standard & Poor’s 500 Index slid 0.5%. The American broad market index rose 2.3% yesterday despite the losses it incurred throughout the day. DT Trading analysts says that this was thanks to a report from the New York newspaper Financial Times that quoted Olli Rehn, the EU Commissioner on Economic Affairs, as saying that Europe has “an increasingly shared view” that the region needs a coordinated approach to put a stop to the debt crisis.
Later today, the markets will be awaiting Automatic Data Processing’s assessment of the employment level in the US private sector. DT Trading economists expect the figure to be 70-80,000 jobs added in September.
DT Trading Limited Analytical Department
Markets Up at Close of First Week of New Quarter
Today in trading in Asia, stocks rose for the second day in a row, while the South Korean won and metals appreciated on the back of European politicians’ efforts to contain the region’s debt crisis. The Euro is trading against the dollar at the highest level in a week.
The MSCI Asia Pacific Index added 2% by the close of trading in Tokyo. Futures on the Standard & Poor’s 500 Index are trading 0.1% below their closing before the publication of unemployment data in the US. Contracts on the Euro Stoxx 50 rose 0.3%. The Korean won rose 1.1%, while the Euro only rose slightly this week – 0.3% to reach $1.3425. Bronze and zinc both rose less than 1% on the MSE in London. Oil underwent a 0.2% correction in New York after the biggest two-week growth in seven months.
European Central Bank President Jean-Claude Trichet announced yesterday that the ECB is resuming purchases of covered assets and will again provide annual lending to private banks. DT Trading economists believe that resuming the program of purchasing only those bonds which the seller physically has will allow the Bank to avoid giving speculators “excess” liquidity. The European regulatory authorities recently began to prohibit uncovered sales of so-called contracts on bank shares and sovereign debt. The program of buying this kind of debt is also in line with the policy to optimize fund disbursement from the European Financial Stabilization Fund (EFSF).
German Chancellor Angela Merkel and French President Nicholas Sarkozy will meet in Berlin on October 9 to discuss Greece’s debt problems. The country is inching closer to default because of the civil unrest and the population’s unwillingness to bear the cost of the economic austerity plan. According to DT Trading analysts, the two leaders will discuss a partial default option for Greece at their upcoming meeting.
Data from the US being published today at 12:30 GMT may show an increase in the number of non-agricultural jobs; last month, the number of jobs created wasn’t enough to lower the unemployment rate from 9.1%, where it has been frozen since July of this year.
DT Trading Limited Analytical Department