Adding Positivity To The Market

Crude oil is being so volatile at today’s session after huge losses achieved during the last six sessions, the EFSF played a significant role in easing tensions today after it approved to give Greece a 5.2 billion euro tranche which eased fears over the near-term outlook for the country. After achieving huge losses, the door is open for crude to rise slightly and any small positive factor would support it and help it in climbing upwards. And we can see this in today’s trading which showing some positivity due to EFSF’s decision. However, this optimism that seen in Europe is temporary and would be vanished soon if nothing major comes out, as the 5.2 billion euro tranche for Greece would let the country to meet its short commitments, but what it will do for the longer commitment if lenders ...

With the start of another session, tension remains evident in the market, especially after the sharp sell-off seen yesterday, where the sentiment deteriorated significantly as Greeks still cannot reach an agreement to form a coalition government, while the conflict continues today with more fears and jitters as some Greeks are demanding leaders to revoke the pledges provided to the European Union regarding the previously made bailout deal. We can see the euro is biased to the downside and trading bearishly since the start of the session today, where the currency lost momentum against the low yielding U.S. dollar as investors flee to the greenback in order to avert as much risk as possible, especially with the current political instability in Greece. Alexis Tsipras, the leader of Greece`s ...

With the start of the European session, the euro and the sterling pound started the session weak, trading with slight gains against the U.S. dollar, correcting some of the losses incurred in the previous session when the return of Europe triggered a huge sell-off wave, sending high yielding currencies and other commodities to the downside on fears the pace of recovery in the world's largest economy is easing. However, during the session the European common currency and the sterling pound extended the gains, supported by the positivity of the Greek decision of holding the general election on May 6, where the proposed election is expected to replace the current coalition technocratic government with a fully elected cabinet and government, Officials told Reuters. The Italian government ...

With the start of the session today markets rebounded to the upside, correcting some of the huge losses incurred yesterday, supported by eased concerns in regards to the Greek debt-swap deal, where more large financial entities are joining the debt swap campaign in attempts to save Greece from a financial disaster. Eyes are still focused on the Greek debt swap deal with the private sector, where a deal should be reached maximum on Thursday, while some kind of improvement was seen today after Societe Generale, UniCredit and Assicurazioni Generali all agreed to participate in the Greek debt-swap deal, joining several other firms already committed to the campaign that aims at helping Greece to avert a financial collapse. The Greek government expressed that 75% of the total bondholders must ...

As this week approaches to an end, markets rebound to the upside after the heavy losses incurred yesterday supported by the heavy load of upbeat fundamentals from Europe, which supported metals, commodities and currencies to correct some of the sharp decline seen yesterday. Moreover, the improvement in the sentiment was also led by the Greek efforts to guarantee the second bailout package worth 130 billion euros, where Greece attempts to avert a financial collapse by passing new laws that include wide range of cuts that aims to trim the huge amount of debt the nation handles, noting that Greece manages the highest debt-to-GDP ratio in the euro area region worth more than 160% according to the International Monetary Fund report. The Greek Parliament approved today another round of cuts ...

Markets found more support today after the United Kingdom released the public finances figures for January, where the cheerful surplus achieved by the royal economy added more positivity to the market, extending the optimism which spread in the market after the euro-zone finance chiefs hit an agreement and approved the second financial aid for the indebted Greece. However, markets are volatile as investors are still weighing the Greek deal and as ECB role is still unclear. The euro-area finance chiefs agreed yesterday to hand Greece the second bailout package approved in October 2011, in attempts to support Greece to cut the euro zone's largest amount of debt-to-GDP ratio to 120.5% from 160% by 2020. Accordingly Greece is expected now to avert default in March, where the nation had to ...

Last week ended with slight optimism in the market; however, pessimism dominated the entire week, where we witnessed a very bearish week as the European common currency declined sharply on renewed fears and rising concerns over Greece and the second bailout package that has been delayed several times, adding more pressures on markets as investors now doubt whether Greece will be able to finish a deal soon or it will be too late and then a catastrophic default will lead the crisis to deepen further. This week is very critical for Greece and for the euro-area region, where markets had enough with the Greek government, international lenders and creditors' negotiations over the second bailout deal, while investors almost lost their faith in the euro zone and its ability to overcome the debt ...

Optimism mixed with uncertainty in the market, where we can see the euro is fluctuating within narrow levels; however, European stocks were able to record gains and now European markets depends on any improvement in the Greek-debt talks with creditors and also as the Greek Premier meets the leaders of the Greek political parties, discussing the terms required by international lenders to obtain the second bailout funds. Time is running out and now markets are very focused on the Greek financial situation, where despite the fact that debt-talks extended for a long period of time, the situation is getting more complicated as the wheel of time keeps on turning and now Greek officials must reach an internal agreement among the ruling parties and must also reach an external agreement with ...

Another positive week for Europe comes to an end; however, we can see the European common currency ended this week with losses as the unexpected cheerful jobs report for the world's largest economy sent the euro to the downside as the U.S. dollar gained momentum on stronger recovery prospects and better projections for economic growth. This critical week was in focus during the entire sessions, where this week contained the European Summit in addition to the several important fundamentals from major economies along with several bond auctions in Europe, which pulled all the attention and forced investors to remain fully concentrated on the critical events. This week started with the important European session in Brussels, where European leaders for the first time were able to meet market ...