Appears The Market Has Started

(Reuters) - Global stocks rebounded from their lows for the year on Monday as world leaders emphasized their support for economic growth in the euro zone, but the euro dipped on persistent concerns that Greece could leave the bloc. Many investors and analysts see the pause in selling of stocks and other risky assets as temporary, given the uncertainties ahead for Greece, which holds national elections on June 17. On Saturday, leaders of the Group of Eight nations stressed that their "imperative is to promote growth and jobs" for the euro zone and expressed support for Greece to stay in the euro. Despite calls from the United States for immediate moves to boost growth, no sign emerged that Germany would soften its stance on austerity as the cure for Europe's debt problems. "More ...

- While waiting for the Greek election on 17 June we are likely to see continued high uncertainty and continued high stress in the markets. Things are likely to get worse before they get better. - Amid this uncertainty, Greek citizens are likely to withdraw more money from their banks and this could escalate into a real bank run. - A major game of chicken has started between the EU on the one hand and Greek politicians on the other. - The EU is likely to stand firm on its demands for Greece to deliver austerity and give only a few concessions. The rethoric from the left coalition party Syriza is likely to continue to be fiercely against the EU as it is aiming to become the biggest party and get 50 bonus mandates for this. - We look at three different post-election scenarios. ...

The deadlock is still ripping through financial markets as investors fear the political vacuum in Greece will lead to a new round of election and only stall a dead-man-walking which is a messy bankruptcy and euro exit for Greece! The political gridlock is still the major highlight, and after the elections that surely reflected the anti-austerity spirit and resentment towards the people to the government by supporting anti-austerity parties, the elections failed to support wide support for a majority parliament. The elections that brought New Democracy to the lead did not offer a stable parliament for Samaras to form a government in the first attempt earlier this week on Monday. Alexis Tsipras followed from the second winning party the radical leftist Syriza and also failed to form a ...

Fundamental Analysis EUR " show that despite the crisis in the euro area, Germany is growing and benefiting from a revival in international trade." - Klaus Baader, senior economist at Societe Generale SA German factory orders rose by more than forecast in March, a sign Europe’s largest economy is weathering the debt crisis. USD "From where we sit right now, we think the economy looks fundamentally stronger." - Marisa Di Natale, an economist at Moody’s Analytics in West Chester U.S. stocks closed mixed on Monday after Francois Hollande was elected as a French president and Greek voters turned to antibailout parties. GBP "… the challenging economic backdrop suggests that a significant acceleration in prices or activity is unlikely in the near term." - Robert Gardner, Nationwide’s ...

(Reuters) - Copper fell on Wednesday after weaker EU and Chinese manufacturing data and a slump in new orders for U.S. factory goods raised fresh concerns about economic slowdown and prospects for demand. A weaker euro also took its toll as a stronger dollar puts pressure on metals prices as it makes commodities priced in the U.S. unit more expensive for holders of other currencies. The euro fell against the dollar after data showed the euro zone manufacturing sector slipped further into decline last month as a downturn that started in the periphery appears to be taking root among core members France and Germany. Benchmark copper on the London Metal Exchange (LME) was at $8,295 a metric ton (1.1023 tons) by 1502 GMT, from Tuesday's close of $8,440. It hit a session low of $8,275 a ...

ECB Preview: Mixed Growth Signals Not Enough to Trigger Rate Cut - Recent economic data is mixed, but not so weak that it will trigger a rate cut, in our view. The ECB remains in “wait-and-see” mode as it assesses the impact of the two 3Y LTROs. We expect the ECB to keep rates unchanged until early mid-2014. - In our view, Mario Draghi's new outspoken focus on growth is not an early signal of a June cut, but rather a hint to the euro area political leaders that the ECB will support public investments in infrastructure projects. - Headline inflation has remained stubbornly high due to higher energy prices and indirect taxes. This diminishes the likelihood of a rate cut. In the coming months inflation is likely to climb back to the March level. Inflation should remain above target ...

The US dollar extended its bearish trend during yesterday's trading session, as investors continued to digest the disappointing US Advance GDP figure released last week. The greenback hit a two month low against the Japanese yen while the GBP/USD rose to an eight-month high. Turning to today, most European markets are closed for the May Day holiday. That being said, traders will want to pay attention to news out of the US. Specifically, the US ISM Manufacturing PMI is forecasted to generate significant market volatility. A better than expected result could help the dollar recoup some of its recent losses. Economic News USD - US Manufacturing PMI May Help Dollar The dollar largely remained bearish against its main currency rivals yesterday, following disappointing US news last week which ...

Forex News and Events: What started out as a risk positive day has slowly reversed itself. The catalysis looks to have been the weak EC business and consumers surveys that suggested Europe remains in a gloomy economic state. The EC Economic Sentiment Indicator dropped from 94.5 to 92.8 showing a decline for the second consecutive month. The countries underlying studies showed a sharp drop in the Italian read while Germany also registered a lower read to 103.03 from 104.3. These numbers suggest that the recent pullback in economic data, including PMI reads, were not just a one off rather indications of a broader trend. The divergence between countries remains wide with the peripheral economies facing deep recessions. We all know that the key to this European crisis is growth and without it, ...

HIGHLIGHTS OF THE WEEK United States Economic data out of the U.S. gave mixed signals of the state of the economy. While retail sales started the week with a strong 0.8% increase, industrial production stalled and housing starts and existing home sales both fell. A feeling of déjà vu has gripped economy watchers remembering back to last year's spring slowdown. While we expect growth to slow from relatively strong first quarter growth, we continue to expect real GDP growth of around 2.0%. The recent decline in gasoline prices contributes to our relative optimism. The U.S. economy is healing, but the shock from the financial crisis is still reverberating and will keep a lid on growth rates. The biggest risk to economic growth remains fiscal drag in 2013. Canada The Bank ...