There are a lot of conflicting trends at work in the gold market. Gold does well amid crisis situations and inflation prospects. Both of these factors are abating, at least for the time being. Portugal has had a successful bond offering, raising hopes that the eurozone will be able to withstand its crisis and preserve the euro.

In China, where inflation is worrisome, the government raised China's lenders reserve requirements. Markets in Asia and Europe sold off following this move.

In the U.S., markets are holding firm on good profits from Intel and JPMorgan Chase. As yo can see this is a mixed bag.

Continue reading Gold Falls $25 per Ounce

Gold Falls $25 per Ounce originally appeared on BloggingStocks on Fri, 14 Jan 2011 15:30:00 EST. Please see our terms for use of feeds.

Investors searching for opportunities will be hard pressed to find stocks that are still undervalued. It seems like this rally has pushed every sector to very high levels. Perhaps, it may be time to look in more off-the-cuff places for investment ideas.

One possibility trades on the Amsterdam-based exchange, the Euronext. The Dutch insurer, Delta Lloyd Group, which has operations in the Netherlands, Germany, and Belgium, is a profitable company with a favorable balance sheet that trades at a significant discount to its book value. In the first half of 2010, it generated €767 million of income after taxes and non-controlling interests, a 263% increase. At the same time, it has €3,903 billion in tangible assets net of all liabilities, but a market cap of just € 2,810 billion as of January 11. In other words, investing in Delta Lloyd is like buying assets, with all liabilities paid off, at a 30% discount.

Continue reading Opportunity on the Euronext: Delta Lloyd

Opportunity on the Euronext: Delta Lloyd originally appeared on BloggingStocks on Wed, 12 Jan 2011 16:00:00 EST. Please see our terms for use of feeds.

Three intermarket commodities are on the move today. The Financial Times reported that the U.S. dollar hit a low against the Swiss franc.

Why is this noteworthy? First the Swiss franc is a separate currency, not part of the euro. With Europe in disarray, the only safe currency is the Swiss franc. Anyone wanting to hedge against the eurozone getting worse would buy the Swiss franc. On the futures market, the March Swiss is trading at 1.05610, up 0.0138 (9:20 EDT). The March U.S. dollar is trading at 80.18, down 0.49.

Continue reading Dollar Hits Low Against the Swiss Franc

Dollar Hits Low Against the Swiss Franc originally appeared on BloggingStocks on Tue, 28 Dec 2010 11:00:00 EST. Please see our terms for use of feeds.

The eurozone debt crisis is spreading across Europe. The latest Irish bailout is not quelling the fear factor. Now, all eyes are turned to Spain, Portugal and Italy.

What has happened is that banking systems are freezing up, the Financial Times explains. One Spanish banker told the paper, "The bond and credit markets are completely closed."

Continue reading Euro Falls as the Eurozone Debt Crisis Worsens

Euro Falls as the Eurozone Debt Crisis Worsens originally appeared on BloggingStocks on Wed, 01 Dec 2010 10:00:00 EST. Please see our terms for use of feeds.

The eurozone sovereign debt crisis has bubbled to the surface again. This time Ireland is in the cross hairs. Ireland may need aid, primarily to bail out its banks. Ireland says it has enough cash to carry it through next summer, but the key concern is keeping Irish banks afloat during this crisis. So far, Ireland hasn't requested financial aid from the European Union.

This uncertainty has set off a selling spree in the euro. About two weeks ago the euro was trading at $1.42. Since the Irish crisis began the euro dropped to $1.35.

Continue reading Traders and Investors Selling the Euro

Traders and Investors Selling the Euro originally appeared on BloggingStocks on Tue, 16 Nov 2010 11:00:00 EST. Please see our terms for use of feeds.

Continue reading China Will Support the Euro and Euro Bonds

China Will Support the Euro and Euro Bonds originally appeared on BloggingStocks on Mon, 04 Oct 2010 09:00:00 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.

Greece's debt woes this spring and talk of comparable problems in other debt-plagued eurozone nations, such as Spain, Italy and Portugal, had the euro bears talking euro-dollar parity as the euro plunged to $1.1877 in early June -- a four-year low.

But a month later the euro has strengthened 5.8% to $1.2574, and suddenly the teeth of the euro bears do not look as sharp.

Continue reading Euro-Dollar Parity? Not So Fast

Euro-Dollar Parity? Not So Fast originally appeared on BloggingStocks on Mon, 12 Jul 2010 11:00:00 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.

The European mess is still smoldering. The greatest fear among traders is that eurozone governments will be unable to enact or follow through on the austerity measures needed to bring deficits under control.

Last week Hungary joined the club of distressed nations. Yet, over the weekend, Hungary's government sought to reassure investors saying that the country is not facing a sovereign credit default.

Continue reading Selling Pressure in the Euro Continues into This Week

Selling Pressure in the Euro Continues into This Week originally appeared on BloggingStocks on Mon, 07 Jun 2010 10:00:00 EST. Please see our terms for use of feeds.

In an about face, G20 finance ministers dropped their support for fiscal stimulus. The communique from Saturday's meeting in South Korea stated: "The recent events highlight of sustainable public finances and the need for our countries to put in place credible growth friendly measures to deliver sustainability."

Back in April the G20 group was hep on continuing their stimulus programs. Their statement then called for fiscal support to "be maintained until the recovery is firmly driven by the private sector and becomes more entrenched."

Continue reading G20 Scraps Fiscal Stimulus to Focus on Deficit Reduction

G20 Scraps Fiscal Stimulus to Focus on Deficit Reduction originally appeared on BloggingStocks on Sun, 06 Jun 2010 10:10:00 EST. Please see our terms for use of feeds.

China's largest sovereign wealth fund, China Invest Corp. (CIC) is "very concerned" about market fluctuations in the eurozone. Gao Xiqing, president of CIC, said that he would keep the current investment level in Europe, no more, no less.

The official China news agency Xinhua said "CIC is very concerned about the short-term market fluctuations and threatened euro zone stability."

Continue reading China Fund 'Very Concerned' About Eurozone Debt Problems

China Fund 'Very Concerned' About Eurozone Debt Problems originally appeared on BloggingStocks on Wed, 02 Jun 2010 10:40:00 EST. Please see our terms for use of feeds.

It seems that Europe is racing to make budget cuts to bring down deficits. The Greek sovereign debt crisis was the catalyst for other member countries to initiate budget cuts to bring spending down closer to the eurozone agreed target of 3%.

National and local governments went on a spending spree, spurred on bailout money from the major banks. They overspent and now must enact austerity measures to combat the excessive debt.

Continue reading Budget Cuts Are Sweeping Europe

Budget Cuts Are Sweeping Europe originally appeared on BloggingStocks on Tue, 01 Jun 2010 12:20:00 EST. Please see our terms for use of feeds.

Continue reading Nouriel Roubini Feels European Crisis Isn't Over

Nouriel Roubini Feels European Crisis Isn't Over originally appeared on BloggingStocks on Tue, 18 May 2010 09:40:00 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.

Monday's key developments in "As The Eurozone Turns":

The Greek policy gap between Germany and France widened after German Chancellor Angela Merkel emphasized that the key to resolving Greece's fiscal crisis is Greece's austerity measures.

"I do not see Greece needs money at the moment and the Greek government has confirmed that," Merkel said, FT.com reported Monday.

Continue reading France, Germany Split over Greece Stabilization Policy Widens

France, Germany Split over Greece Stabilization Policy Widens originally appeared on BloggingStocks on Mon, 22 Mar 2010 18:00:00 EST. Please see our terms for use of feeds.

In an effort to stave off further deterioration in its debt, Greece has adopted new taxes and pay cuts. They are aimed at showing the EU that Greece is serious in reducing its debt problems. EU officials have been demanding that Greece take immediate action.

The cuts amount to $6.5 billion and include the following:

Continue reading Greek Government Adopts Austerity Measures

Greek Government Adopts Austerity Measures originally appeared on BloggingStocks on Wed, 03 Mar 2010 10:40:00 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.

Well that didn't take long. Barely a week into the Greece fiscal crisis, critics of the eurozone commercial union, commonly known as "euro skeptics," are already writing Chapter 1 of their "upcoming books" detailing the breakup of the eurozone.

Those books will never be published. They'll be no change in eurozone's membership, as the group's advantages for member states far outweigh its liabilities. True, Greece, and similar fiscal concerns in Spain, Portugal and Ireland, presents the eurozone with its most serious concern since the union's formation, but it is solvable.

Continue reading The Eurozone Isn't Going Away

The Eurozone Isn't Going Away originally appeared on BloggingStocks on Fri, 12 Feb 2010 17:20:00 EST. Please see our terms for use of feeds.

Eurozone leaders met in Brussels and hammered out a tentative plan to back Greece's debt problems. The agreement is lame, as it is placing all of the responsibility on Greece to make drastic changes in its budget. The goal is for Greece to bring down its deficit by 2012.

The plan sets up a liaison between Greece and the European Commission which would monitor the implementation of Greek reforms. It should be made clear that Greece has not asked for aid.

"All euro area members must conduct sound national policies in line with the agreed rules," Herman Van Rompuy, the EU's permanent president said. The rules were not spelled out. They will be finalized on Monday.

Continue reading Eurozone Leaders Hammer Out a Lame Plan to Back Greece

Eurozone Leaders Hammer Out a Lame Plan to Back Greece originally appeared on BloggingStocks on Thu, 11 Feb 2010 09:50:00 EST. Please see our terms for use of feeds.