Awaited Results Of The Eurozone

Dukascopy Fundamental Analysis EUR European stocks dropped for a second day, to the lowest level in almost four months, as investors awaited a resolution to the political impasse in Greece and as Spanish credit risk surged. The Stoxx Europe 600 Index (SXXP) lost 1.1 percent to 247.75 at 2:15 p.m. in London, the lowest since Jan. 13, as the euro weakened for an eighth day. The Stoxx 600 has tumbled 9 percent from this year’s high on March 16, trimming this year’s advance to 1.3 percent. USD U.S. stock futures retreated, indicating the Dow Jones Industrial Average will drop for a sixth straight day, as Greece’s political impasse intensified concern about a worsening of the European sovereign-debt crisis. GBP U.K. retail sales fell the most in more than a year last month as poor weather ...

Fundamental Analysis EUR "On the basis of some current economic and fiscal trends in France... we wouldn't expect to downgrade France this year" - Ed Parker, head of EMEA sovereign ratings Fitch Raings does not plan to downgrade France's top notch AAA credit raing in 2012, while raings of Spain and Italy as well as other countries under review could be cut by one or two notches this year, said Ed Parker, head of EMEA sovereign raings at Fitch on Tuesday. USD "Demand has been pretty good in the fourth quarter, though the momentum peaked early in the quarter" - Aneta Markowska, a senior U.S. economist at Societe Generale U.S. month-on-month wholesale inventories barely grew in November, suggesing the economy is recovering at a moderate pace. GBP "A better-than-hoped for December closed ...

The Week Ahead Highlights * Stress test results are in--Yawn * Sterling bolstered as some of the economic gloom lifts * German recovery becoming difficult to ignore * JPY-strength becoming an issue in Tokyo * Key data and events to watch next week Stress test results are in--Yawn The long-awaited results of the Eurozone banking sector stress tests were delivered on Friday and markets greeted them with a collective yawn. Earlier leaks led markets to conclude the adverse scenarios would not be especially stringent, causing most to discount the results. To re-cap, only 7 of the 91 banks tested failed, requiring a total of only EUR 3.5 bio to be raised in new capital. To put that number in perspective, some analysts reckon Spanish banks alone need to raise EUR 40 bio to ...

The Week Ahead Highlights * Risk rally stalls, more downside likely * EU bank stress test results are keenly awaited * UK Inflation debate may be fuelled * Bank of Canada Rate hike expected * Key data and events to watch next week Risk rally stalls, more downside likely Risk assets (stocks, commodities, JPY-crosses) started out the past week on solid gains, but ultimately failed to overcome key resistance levels. In stocks, the fact that 20 out of 23 US earnings reports beat expectations and shares could not advance should be alarming. In reality, though, it should also have been expected--as the outlook for the US recovery continued to slide, the future outlook for stocks was undermined (and earnings are mostly backward looking indicators anyway). The market is ...

MORNING BRIEFING: EuroZone in the spotlight today What’s new: Euro Zone: EURUSD breaks the 1.2800 level Euro Zone: Policy rate announcement today, focus lies on press conference that follows US Dollar: Maintains its gains United Kingdom: Elections today New Zealand Dollar: surges against major currencies Australian dollar: trades weaker on poor results Today: Rates in Asia and Indices: EURUSD: 1.2856 - 1.2737. USDCHF: 1.1245 - 1.1152. GBPUSD: 1.5148 - 1.5020. EURJPY: 120.72 – 118.85. USDJPY: 93.97 – 93.29. DowJones: 10’868.12 -0.54% NASDAQ: 2'402.29 -0.91% S & P 500: 1'165.87 -0.66% Nikkei: 10’695.69 -3.27% Shanghai 2’739.70 -4.11% Gold: $ 1'175.20 Crude Oil: $ 79.03 Comments: EURUSD broke below 1.28 to reach 14 month lows. Social unrest in Greece and rising yields for other ...