The markets were full of contradictions last week. Take for example the turmoil in the Middle East. In past crises, investors flocked to the U.S. dollar. But not this time. The U.S. dollar futures contract fell to 76.41 last week.

Another contradiction: the U.S. jobs report was the best in two years, with 192,000 new jobs added. The stock market should have rallied strongly. Instead the Dow fell 88 points. The crises in Libya and elsewhere overshadowed the favorable jobs picture.

Continue reading Euro Trades Above $1.40 on Expectation of Higher Rates

Euro Trades Above $1.40 on Expectation of Higher Rates originally appeared on BloggingStocks on Mon, 07 Mar 2011 07:00:00 EST. Please see our terms for use of feeds.

The trends that drove gold prices higher in 2010 are still in place. In the U.S., the Federal Reserve is buying $600 billion in treasuries in an attempt to keep interest rates low. Low interest rates encourage higher gold prices.

In Europe, the situation is still unstable. The European Central Bank (ECB) has stepped up its purchases of member nations' bonds. Spain is still on the table as a country teetering on verge of a bailout. Until the European mess is settled, gold remains a surrogate currency.

Continue reading Analysts Forecast Higher Gold Prices in 2011

Analysts Forecast Higher Gold Prices in 2011 originally appeared on BloggingStocks on Sun, 02 Jan 2011 14:15:00 EST. Please see our terms for use of feeds.

Spot gold in London hit $1,299.65. The December gold futures contract traded at $1,301.30, setting new record highs, as reported in Reuters.

Gold resumed its rally mode when the U.S. Federal Reserve indicated that it will provide more stimulus to the U.S. economy. That triggered commodities to move higher in anticipation of more inflation.

Continue reading Gold Rises to $1,300 per Ounce; U.S. Dollar Sinks

Gold Rises to $1,300 per Ounce; U.S. Dollar Sinks originally appeared on BloggingStocks on Fri, 24 Sep 2010 11:20:00 EST. Please see our terms for use of feeds.

Developed countries are scrambling to put in place more rounds of stimulus to prop up their faltering economies.

The U.S. Federal Reserve has already pledged or spent an unbelievable $12.2 trillion to bail out a handful of bankers. The Fed slashed interest rates to zero and it is now purchasing more treasuries with proceeds from existing purchases. Finally, at its recent meeting the Fed stated that it stands ready to inject more stimulus in the economy.

Continue reading $12.2 Trillion Was Not Enough Stimulus

$12.2 Trillion Was Not Enough Stimulus originally appeared on BloggingStocks on Thu, 23 Sep 2010 10:50:00 EST. Please see our terms for use of feeds.

Top central bankers and regulators from 27 countries have agreed on new rules for central banking, according to The New York Times.

Jean-Claude Trichet, president of the European Central Bank, said, "The agreements reached today are a fundamental strengthening of global capital markets." The agreement requires banks to raise the amount of common equity they hold to 7% of assets from 2%. Often known as Basel III, the group set a deadline of Jan. 1, 2013 for member nations to implement the rules.

Continue reading Top Central Bankers Agree on New Rules for Global Banking

Top Central Bankers Agree on New Rules for Global Banking originally appeared on BloggingStocks on Mon, 13 Sep 2010 09:00:00 EST. Please see our terms for use of feeds.

U.S. markets sold off Tuesday amid fears of European debt defaults. On Wednesday, news that Greece's economy shrank by 1.8% in the second quarter didn't help ease those concerns.

Back in June, Greece was the center of a potential default crisis. The European Central Bank was forced to provide the member country with $140 billion in bailout funds. The bailout was orchestrated with the International Monetary Fund. Under the terms of the agreement, Greece was forced to impose austerity measures such as cutting public sector expenditures.

Continue reading Greek Economy Shrinks

Greek Economy Shrinks originally appeared on BloggingStocks on Wed, 08 Sep 2010 11:20:00 EST. Please see our terms for use of feeds.

ECB President, Trichet, Says Cut Public Spending and Raise Taxes originally appeared on BloggingStocks on Fri, 23 Jul 2010 10:30:00 EST. Please see our terms for use of feeds.

Both the Bank of England (BOE) and the European Central Bank (ECB) signaled they believe their economies need further help from cheap money as they announced Thursday morning that they will be leaving interest rates low and unchanged.

The BOE left interest rates at 0.5% -- where they have been since March 2009. The ECB left interest rates at 1% -- the same level they have been at since May 2009.

Continue reading BOE and ECB Leave Interest Rates Unchanged

BOE and ECB Leave Interest Rates Unchanged originally appeared on BloggingStocks on Thu, 08 Jul 2010 11:50:00 EST. Please see our terms for use of feeds.

So, how is that Summer of Recovery working out? Following Tuesday's drop, the market was slightly lower Wednesday morning thanks in part to the ADP payroll report. According to the report, employers added 13,000 jobs in June, falling short of the consensus estimate for 60,000 jobs. This data looks at private-sector jobs only and suggests that payroll gains were tame in June thanks to small businesses that were cutting jobs.

All of Wednesday morning's news wasn't bad, as the European Central Bank (ECB) offer of three-month funds came in short of expectations. This data means that the region's banks may not be as ECB-dependent as some thought. In addition, the financial sector is prospering as the exposure to European banks was made to appear a bit less toxic. Furthermore, Democrats in Congress decided to take a bank tax off the table in the new financial overhaul bill. This move has helped bring Republicans on board and makes the bill look like it may pass.

Continue reading Dow on Verge of Worst Second Quarter Since 2002

Dow on Verge of Worst Second Quarter Since 2002 originally appeared on BloggingStocks on Wed, 30 Jun 2010 11:45:00 EST. Please see our terms for use of feeds.

Spanish banks are scrambling to borrow record amounts from the European Central Bank (ECB) for fear that they will not be able to borrow from international capital markets.

Last month, Spanish banks borrowed 85.6 billion euros from the ECB, double the amount borrowed during the Lehman collapse, and amounting to 16.5% of all loans granted by the ECB. This is the highest amount since the launch of the eurozone in 1999.

Continue reading Spanish Banks Borrow Record Amounts from the European Central Bank

Spanish Banks Borrow Record Amounts from the European Central Bank originally appeared on BloggingStocks on Wed, 16 Jun 2010 14:20:00 EST. Please see our terms for use of feeds.

With reference to the Greek debt crisis, Moody's said: "banking systems faced very real common threats if doubts were raised about their governments' abilities to pay debts."

Moody's was referring specifically to the UK, Irish, Italian, Portuguese and Spanish banking systems. Banks shares have fallen sharply across Europe. In France, Societe Generale (SCGLY) was the biggest loser, with its share price falling 7%. It holds $3.8 billion of Greek government debt.

Continue reading Moody's Warns of Contagion Risk to European Banks

Moody's Warns of Contagion Risk to European Banks originally appeared on BloggingStocks on Sat, 08 May 2010 09:40:00 EST. Please see our terms for use of feeds.

When the financial meltdown occurred, the U.S. Federal Reserveslashed interest rates to zero and bought U.S. treasuries to keep interest rates low.

The European Central Bank (ECB), which represents the 16 countries in the eurozone, does not have this power. Nevertheless, investors are looking for the ECB to intervene in the markets to stem the fall of the euro. In fact, ECB president said the matter was not discussed at their recent meeting.

Continue reading European Central Bank Fails to Act on Greek Crisis

European Central Bank Fails to Act on Greek Crisis originally appeared on BloggingStocks on Fri, 07 May 2010 12:10:00 EST. Please see our terms for use of feeds.

Continue reading ECB's Trichet Breaks Rules to Aid Greece, Prevent Contagion

ECB's Trichet Breaks Rules to Aid Greece, Prevent Contagion originally appeared on BloggingStocks on Tue, 04 May 2010 17:30:00 EST. Please see our terms for use of feeds.

Thursday's events in Europe provided some encouragement, if not universal calm, regarding the Greek debt saga, including the promise that Europe and the International Monetary Fund will now move relatively swiftly to put together a suitable package that will assist the Mediterranean nation's transition to fiscal solvency.

But even if Europe again show signs of "snatching defeat from the jaws of victory," investors should not anticipate a sudden return to the barter system, globally.

Continue reading One 'Trump Card' Left Should EU, IMF Talks Disappoint Again

One 'Trump Card' Left Should EU, IMF Talks Disappoint Again originally appeared on BloggingStocks on Fri, 30 Apr 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading ECB's Trichet: Greece Is a European Concern, Not an IMF Concern

ECB's Trichet: Greece Is a European Concern, Not an IMF Concern originally appeared on BloggingStocks on Thu, 04 Mar 2010 17:30:00 EST. Please see our terms for use of feeds.

Behind the scenes, negotiations are underway to bail out Greece to the tune of 25 billion euros ($33.7 billion dollars.)

The German weekly Der Spiegel is reporting that aid to Greece would be apportioned based on the capital each country holds in the European Central Bank.

Continue reading Planning to Bail Out Greece with up to 25 Billion Euros

Planning to Bail Out Greece with up to 25 Billion Euros originally appeared on BloggingStocks on Sun, 21 Feb 2010 10:20:00 EST. Please see our terms for use of feeds.

It's a good old fashion standoff, and this time it's on the world stage. Germany and the European Central Bank (ECB) want Greece to tighten further. Specifically they want Greece to add 1% to 2% to its value-added tax and cut wages further in exchange for financial assistance.

Greece is balking. They want to postpone any decision on further measures until mid March when officials from the European Union, ECB and the International Monetary Fund complete their inspection of Greece's deficit cutting plans.

Continue reading Germany Wants Greece to Tighten More; Greece Refuses

Germany Wants Greece to Tighten More; Greece Refuses originally appeared on BloggingStocks on Mon, 15 Feb 2010 11:40:00 EST. Please see our terms for use of feeds.

Continue reading As Expected, ECB, BOE Keep Key Interest Rates the Same

As Expected, ECB, BOE Keep Key Interest Rates the Same originally appeared on BloggingStocks on Thu, 04 Feb 2010 15:40:00 EST. Please see our terms for use of feeds.

Continue reading ECB's Trichet Calls Ousting Greece from Euro-Zone 'Absurd'

ECB's Trichet Calls Ousting Greece from Euro-Zone 'Absurd' originally appeared on BloggingStocks on Thu, 14 Jan 2010 16:20:00 EST. Please see our terms for use of feeds.

Continue reading ECB keeps key interest rate at 1%, to almost everyone's benefit

ECB keeps key interest rate at 1%, to almost everyone's benefit originally appeared on BloggingStocks on Thu, 03 Dec 2009 18:00:00 EST. Please see our terms for use of feeds.