IMF Will Support Greece, Dismisses Reports Saying Otherwise

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Jul 23 0
EU

The International Monetary Fund said it will support Greece and help the country overcome its economic problems. The IMF dismissed a news report over the weekend that said the IMF may refuse to continue supporting Greece.

The German weekly Der Spiegel reported over the weekend that Greece will need up to 50 billion more euros on top of the 130 billion euros already agreed on and the IMF may refuse to fund any more.

An IMF spokesperson said, “The IMF is supporting Greece in overcoming its economic difficulties.”

Greece’s new Prime Minister has vowed to renegotiate the bailout while remaining in the euro zone. The IMF has hinted that it would be open to discussing new targets under the bailout agreement due to delays caused by elections in Greece.


Stocks Jump 1% on Stimulus Hopes

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Jun 19 0
Market News

Stock indexes are up 1% heading into afternoon trading as investors are optimistic about some kind of stimulus news from the Federal Reserve this week. The Fed started a two day meeting today and will have an announcement tomorrow afternoon.

Recent economic data in the U.S. has shown weakness in jobs and manufacturing.

In Europe, Greece is working on forming a coalition government led by last weekend’s election winner New Democracy, a conservative party who supports the recent bailout deal and wishes to stay in the EU.

The G20 is also meeting this week in Mexico. Leaders from the world’s leading economies will mainly discuss Europe’s debt crisis. European leaders have said they will consider steps toward a banking union.

Microsoft (MSFT) shares are rallying today after the company unveiled its own tablet yesterday dubbed the Surface. The Surface will run Windows 8 and have front and rear cameras. No pricing or release details were released at yesterday’s conference.

With half the trading day left the Dow is up 121 points, the Nasdaq is up 35 points and the S&P 500 is up 14 points.


Wall Street Moves Higher On Greek Hopes

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Jun 14 0
Market News

Stocks are moving higher today as investors hope election results out of Greece this weekend will not push Greece out of the EU. Traders have seemingly ignored poor data from the U.S. labor market and rising bond yields in Spain and Italy. Many analysts believe volatility will remain high tomorrow as investors make bets or pull money out of the market ahead of Greece’s elections on Sunday.

Financial stocks in Greece rallied more than 20% today as speculation swirls that secret polls show a government favorable to the EU bailout will win this weekend. This is all speculation as polling is illegal in Greece in the last two weeks before the election.

Data from the U.S. labor market shows new claims for unemployment benefits rose unexpectedly last week to 386,000. Consumer prices fell the most in over three years in May, dropping 0.3%.

Bond yields in the Spain and Italy also rose today. Spanish yields rose after Moody’s cut its rating on government debt by three notches. These downgrades put more pressure on bond yields as investors want more reassurances to hold Spain’s debt. Italy’s bond yields are also creeping higher as many investors believe Italy will be the next big financial problem.

Overall the market is rallying on nothing but hope for a good outcome from Greece this weekend. Also the Fed meets next week and traders will be wanting to hear about some kind of stimulus in the market such as another round of QE.

The Dow is currently up 115 points, the Nasdaq is up 12 points and the S&P 500 is up 10 points.


A United States of Europe Suggests EU Energy Chief

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Jun 13 0
EU

Gunther Oettinger, European Union Energy Commissioner, told CNBC today the euro zone “needs a United States of Europe” and “there is no plan B” for the euro zone. Oettinger made these comments at the 161st meeting of the Organization of Petroleum Exporting Countries in Vienna.

Oettinger stressed the need for European leaders to act fast to contain the current debt crisis. He added, “we have to bring some concrete proposals” to the next summit of European leaders. This summit will be held on June 28-29.

Gunther Oettinger defended Angela Merkel’s handling of the debt crisis and expects her and the newly elected French president to work closely together.

Europe’s main tool to fight the current crisis has been the Emergency Financial Stability Fund (EFSF). This will soon be taken over by a more permanent solution, the European Stability Mechanism. This new tool will provide up to 500 billion euros to struggling governments once it starts on July 1.

When it comes to Greece, Oettinger said he would prefer the country stay in the EU but the decision is ultimately up to voters. He then reiterated there “there is no plan B” for the monetary union. Basically either Greece adheres to the agreements they have made, or they cannot stay in the EU.

Investors in the U.S. will be watching developments out of Europe very closely as any bad news can send the markets down big time.


Greeks Pulling Money From Banks Ahead of Vote

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Jun 13 0
Euro Bills

Ahead of second election on Sunday, Greeks are withdrawing money out of banks and stocking up on food. Bankers have said about $1 billion were leaving banks daily and retailers are seeing an increase of consumers buying non-perishable food. Other goods at stores have seen a major drop in sales as the Greek people spend any money they have on food.

The latest official poll shows the conservative New Democracy party (supports bailout) and the leftist Syriza party (wants to cancel bailout deal) running neck and neck. With the election fast approaching, publishing polls is now illegal and each party is now leaking “secret polls” showing them in the lead.

“This is nonsense,” one reputable Greek pollster said. “Our polls show the picture has not changed much since the last polls were published. Parties may be leaking these numbers on purpose to boost their standing.”

The Greek people are fearing the worst come Sunday as they pull money from financial institutions and stockpile food. The elections in Greece will have an impact across the world as investors watch the results closely.


Market Turns Lower as Investors Continue to Worry About Euro Zone

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Jun 11 0
Stock Market News

Markets started the day up this morning, but quickly turned negative as concerns over Greece and Spain continue to plague the market. Over the weekend, Euro zone finance ministers agreed to lend Spain up to $125 billion to shore up its financial sector. Analysts are skeptical that this bailout would put an end to the debt crisis.

“A lot of people were concerned over the size of the bailout—we were expecting something closer to 150-200 billion [euros] and we only got 100 billion,” said Phillip Streible, senior commodities broker at RJO Futures. “So once traders started to digest [the news], they started to take profit or sell into that rally because they think that in another 3 to 6 months, Spain’s going to have to come back and ask for additional money.”

Greece also continues to worry investors as its second round of elections will be held on June 17. This election could see even bigger support for anti austerity candidates.

With about an hour left in the trading day the Dow is down 62 points, the Nasdaq is down 21 points and the S&P 500 is down 6 points.


Greece Running Out of Money as Tax Income Dwindles

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Jun 6 0
Market News

As European leaders try to save the euro zone, Greece continues to have major problems. The latest one sees the country running out of money as its tax proceeds dry up. Some government officials are pointing the finger at their banks and saying they are hurting their efforts to collect back taxes.

Greece could run out of money as early as July causing the country to stop paying wages, pensions and even importing goods. The country said it is falling short of about 2 billion euros despite receiving its latest bailout of 130 billion euros.

This problem isn’t just Greece either, Spain is also having problems raising money as investors demand high rates.

Germany, whose idea it was to enact austerity rates that have exasperated the problem, is now proposing a political union in combination with the monetary one. European leaders took a first step to this on Tuesday, proposing a central authority for banking regulation.

Investors will be watching what happens next in Europe very closely. While today’s rally sees traders ignoring Europe for right now, that won’t last for long.


Greece Shakes World Markets, Gold and Oil Reeling

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May 23 0
Euro Bills

Worries that Greece could exit the euro zone which in turn could lead to other weak euro nations leaving has shaken the global markets. The Dow is currently down more than 1% and traders are flooding into U.S. Treasurys, pushing yields close to historic lows.

Commodities took a big hit today with Marc Chandler, chief currency strategist at Brown Brothers Harriman, describing it, “Gold is getting crushed. Oil is getting crushed. It’s like risk-off everywhere…This is really soured sentiment.” He added, “There’s talk the European finance ministers have told each other to prepare for Greece’s exit.”

Gold has fallen as much as 2% today and silver as much as 3%. Oil closed at less than $90 a barrel, its lowest close since October.

Some analysts beleive that a Greek exit could cause a cascading effect with other weak EU nations leaving.

European leaders were meeting in Brussels today to discuss the current EU situation and how they may be able to fix it.

The markets want solutions and want them fast as the Dow is off 103 points, the Nasdaq is down 16 points and the S&P 500 is down 9 points.


Political Stalemate in Greece, Euro Exit Looking More Likely

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May 14 0
Euro Bills

Efforts to form a coalition for a Greek government continue to fall short 8 days after elections. Policymakers in the EU have warned that Greece cannot remain a EU member if it does away with its bailout program which has seen massive austerity measures cripple the country.

Should a coalition not be formed, the country would hold fresh elections this summer with polling showing anti bailout parties receiving even more support from the populace.

Financial markets across the world are preparing for a Greek default and euro exit happening sooner than later. Greece could run out of money as early as next month and with no government in place could lead to a worst case scenario, a chaotic default.« Continue »