Continue reading Gold and Silver Hit New Highs

Gold and Silver Hit New Highs originally appeared on BloggingStocks on Fri, 01 Apr 2011 11:40:00 EST. Please see our terms for use of feeds.

Portugal Prime Minister Jose Socrates stood by his promise and resigned late Wednesday, leaving the country with a higher possibility of a bailout. Socrates had hoped to push through structural reforms in the country in order to cut down borrowing costs and decrease its fiscal deficit.

The prime manager's resignation was just another undesirable event for Portugal, as Moody's downgraded the country's sovereign debt rating last week and gave Portugal a negative outlook. Although nothing is certain, the outlook suggests that further ratings cuts may ensue.

Continue reading Trading Portugal's Politics

Trading Portugal's Politics originally appeared on BloggingStocks on Thu, 24 Mar 2011 18:00:00 EST. Please see our terms for use of feeds.

The beleaguered U.S. dollar, which has weakened about 50% versus the euro and about 11% versus the British pound since 2002, is down but hardly out.

The dollar has rallied in the past two months versus the euro (up 8%) and pound (up about 4%), on renewed concern about sovereign debt in Europe. This time, the concern is about Portugal's debt, and the impact continued credit market woes would have on both euro-zone and United Kingdom GDP growth.

On Tuesday, Portugal's Prime Minister Jose Socrates said his country will not need a bail-out, and its budget deficit will be lower than forecast, Bloomberg News reported. He said rumors that the country needs aid are helping "speculators" while hurting Portugal and driving down the euro.

Continue reading Europe Debt Concerns Continue to Weigh on Euro, Support Dollar

Europe Debt Concerns Continue to Weigh on Euro, Support Dollar originally appeared on BloggingStocks on Tue, 11 Jan 2011 15:30:00 EST. Please see our terms for use of feeds.

So you thought the sovereign debt crisis in Europe was over? Wrong. For the past two months we've had a temporary respite. The euro rose and we got a nice warm and fuzzy feeling. But now the problem is back.

According to Bloomberg Markets Magazine's October issue, even though Europe did stress tests on their banks, there is still concern that one or more countries could default. Banks hold sovereign debt bonds from many different countries. That is putting pressure on all eurozone banks.

A default by Greece could trigger the collapse of banks with large holdings of Greek debt. Europe's largest banks hold €134 billion in Greek, Portuguese and Spanish government bonds.

Continue reading Worries of European Sovereign Default Rattle the Markets

Worries of European Sovereign Default Rattle the Markets originally appeared on BloggingStocks on Tue, 07 Sep 2010 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Moody's Cuts Portugal's Sovereign Debt Rating

Moody's Cuts Portugal's Sovereign Debt Rating originally appeared on BloggingStocks on Tue, 13 Jul 2010 08:00:00 EST. Please see our terms for use of feeds.

Continue reading Is the Eurozone History?

Is the Eurozone History? originally appeared on BloggingStocks on Tue, 04 May 2010 10:00:00 EST. Please see our terms for use of feeds.

Continue reading Aid Package to Greece Now Priority After Contagion Fear Rises

Aid Package to Greece Now Priority After Contagion Fear Rises originally appeared on BloggingStocks on Thu, 29 Apr 2010 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Germany's Merkel Wants to Verify Fiscal Cuts Before Releasing Funds to Greece

Germany's Merkel Wants to Verify Fiscal Cuts Before Releasing Funds to Greece originally appeared on BloggingStocks on Tue, 27 Apr 2010 16:40:00 EST. Please see our terms for use of feeds.

As a consequence, the euro is falling out of bed and the dollar is screaming higher. Gold, which trades opposite the dollar, tumbled to a five month low. with April futures closing at $1,086.20 down $14.90 The June euro futures are trading at $1.3348 down .01410 (2:45 EDT) and the June dollar futures are trading at 82.040 up .922.

Continue reading Gold Sinks to Five Week Low as the Dollar Strengthens

Gold Sinks to Five Week Low as the Dollar Strengthens originally appeared on BloggingStocks on Wed, 24 Mar 2010 17:40:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Can't Win Every Day (ADBE, GENZ, SBUX, COP, GENT, S)

Closing Bell: Can't Win Every Day (ADBE, GENZ, SBUX, COP, GENT, S) originally appeared on BloggingStocks on Wed, 24 Mar 2010 16:40:00 EST. Please see our terms for use of feeds.

They may say they can't stand the "ugly Americans," but there's only one place where rich Europeans will put their money.

According to alternative investment research firm Preqin, 29% of all European hedge fund investors prefer to invest in funds based in the U.S., where the managers are often able to highlight solid track records and experience, not to mention more innovative funds. The average European hedge fund investor has capital in three U.S. funds.

Continue reading A Third of Europeans Want Americans to Manage Their Money

A Third of Europeans Want Americans to Manage Their Money originally appeared on BloggingStocks on Tue, 16 Feb 2010 13:00:00 EST. Please see our terms for use of feeds.

During a crisis, never mind what the media or government officials are saying, follow the money.

The Mercantile Exchange (CME) posts open contracts for each currency traded -- both long and short positions. By subtracting them you can get a sense of whether traders are net long or short. In the case of the euro, traders are net short 40,000 contracts or nearly $8 billion.

Meanwhile, officials of struggling countries, Greece, Spain and Portugal are telling the media that they have things under control. Elena Salgado, Spanish finance minister and Jose Manuel Campo, her deputy flew to London to meet with bondholders, the Financial Times reports. They want to reassure promises to cut Spain's budget deficit by 3% of GDP by 2013. But then the treasury wants to raise 116.7 billion euros.

Continue reading Traders Are Net Short the Euro by $8 billion

Traders Are Net Short the Euro by $8 billion originally appeared on BloggingStocks on Tue, 09 Feb 2010 10:40:00 EST. Please see our terms for use of feeds.

It sometimes is a small, unpredicted event that moves markets. Today it was Jean-Claude Trichet, the president of the European Central Bank. He unexpectedly left a meeting in Australia to attend special meeting of European leaders to address the region's economy.

That was the trigger that shot off a turnaround in world markets. Stocks and commodities are trading higher in anticipation that the Greek sovereign debt problem will be dealt with. The U.S. market, just opened, did it with a bang as the Dow industrials more than recovered its triple digit loss from Monday to be back above the 10,000 mark.

Continue reading Commodities, Markets Turn Higher on Rumors of Greek Bailout

Commodities, Markets Turn Higher on Rumors of Greek Bailout originally appeared on BloggingStocks on Tue, 09 Feb 2010 10:00:00 EST. Please see our terms for use of feeds.

Looking back just a few weeks, the markets ushered in the new year with euphoria. Within a few short weeks, things have turned sour. The Dow dropped below the 10,000 mark last week. S&P 500 is down 7.3% from its 15-month closing peak.

Now the question facing investors and traders is whether the market is in a corrective phase. Eric Kuby of NorthStar Investment Management Group thinks so. "I'm in the camp that believes that we are in a correction," he said.

Continue reading Are U.S. Stocks in a Correction Phase?

Are U.S. Stocks in a Correction Phase? originally appeared on BloggingStocks on Sun, 07 Feb 2010 16:40:00 EST. Please see our terms for use of feeds.

On Thursday, markets across Europe, Asia and the U.S. sold off sharply. The reason is concern over Greece, Spain and Portugal being unable to manage their sovereign debts. The problem did not vanish overnight. The spread between the Greek and German 10-year government debt expanded since Thursday. Investors and traders sold the euro and bought dollars. Again on Friday, even with the Swiss Central Bank selling its own currency, the euro is still under pressure.

The dollar is strong again Friday, with the U.S. dollar index trading at 80.39, up .315 (8:30 EDT). In contrast, the euro has fallen 1.1% so far this week. This is the fourth consecutive week of losses.

Continue reading Dollar Rallies as Worries Over Greece, Spain and Portugal Debt Persist

Dollar Rallies as Worries Over Greece, Spain and Portugal Debt Persist originally appeared on BloggingStocks on Fri, 05 Feb 2010 10:30:00 EST. Please see our terms for use of feeds.

Europe is hot, if you don't look too far over your shoulder. The Dow Jones Stoxx 600 Index played well through the stock market recovery of 2009, ticking up 28% (60% from its March 2009 low). This was the index's best annual performance in a decade.

Basic resources and banks gained 100% and 46%, respectively, this year, after having turned in dismal performances the year before. China helped, as well, with its elevated economic growth forecast good for another 0.5% gain during the shortened week of Christmas.

Continue reading Good Year, Bad Decade for Europe

Good Year, Bad Decade for Europe originally appeared on BloggingStocks on Sun, 03 Jan 2010 16:50:00 EST. Please see our terms for use of feeds.

One way investors/readers could characterize the current environment is as a world filled with concerns.

Concern about the U.S. housing sector. Concern about declining U.S. disposable income. Concerning about slowing GDP growth in Europe and Asia. Concern about the Yankees not winning the American League pennant.

O.K., that last item was a purely subjective, parochial one, but you get the point: there's concern that global economic conditions are worsening, not improving.

Europe's GDP is latest focal point

Further, while emerging markets in Asia, led by China and India, have been the growth story of the decade, the region really sending a chill up economists' -- business executives' -- spines is Europe, so says economist Glen Langan.

"Up through July we had seen weakness in Italy, Greece, Spain, and Portugal, and the investment community's response was one of 'no big deal, they are not the major growth regions, anyway,'" Langan said. "But now there's signs of slowing in Germany, France, and the United Kingdom, and nearly every demand-side indicator is in retreat. It's a pronounced psychological shift, no question."

Continue reading Right now, it's a globe filled with economic concerns

Right now, it's a globe filled with economic concerns originally appeared on BloggingStocks on Sat, 16 Aug 2008 13:40:00 EST. Please see our terms for use of feeds.

Continue reading ECB's 'below 2%' inflation target called unrealistic

ECB's 'below 2%' inflation target called unrealistic originally appeared on BloggingStocks on Tue, 27 May 2008 16:57:00 EST. Please see our terms for use of feeds.

Cramer sweet on Vince McMahon of WWE originally appeared on BloggingStocks on Thu, 19 Oct 2006 21:49:00 EST. Please see our terms for use of feeds.