Growth In The Eurozone Has Slowed

Fundamental Analysis EUR "The euro zone is being buffeted by major headwinds." - Howard Archer, chief European economist at IHS Global Insight European manufacturing and services industries contracted in May. A composite index based on a survey of purchasing managers in manufacturing and services sectors declined to 45.9 from 46.7 in April, said the Markit Economics on Thursday. USD "It looks more and more like businesses are hesitating to invest in the face of worsening uncertainties in the and global economy." - Pierre Ellis, a senior economist at Decision Economics The number of Americans claiming for unemployment benefits declined slightly by 2,000 to a seasonally adjusted 370,000 in the week ended May 19 from the week before, said the Department of Labor on Thursday. GBP " ...

Fundamental Analysis EUR Concern about Greece "is a big weight on the market and makes things uncertain" - Emmanuel Soupre, a fund manager at Neuflize Private Assets European stocks tumbled on Wednesday, after rising by the most in a month on Tuesday, on speculation Greece may exit the euro zone. USD "It’s very clear now that the housing market has turned a corner" - Richard DeKaser, deputy chief economist at Parthenon Group LLC Sales of new U.S. homes rose by more than expected in April, Commerce Department data showed on Wednesday. Purchases increased to an annual rate of 343,000, up by 3.3 per cent from a revised 332,000 in March. GBP " employment remains fragile and wage growth weak" - Ross Walker, chief U.K. economist at Royal Bank of Scotland Group U.K. retails sales declined by ...

Fundamental Analysis EUR "Inevitably there is going to be an element of bargain hunting as investors look to top up their holdings on the basis of slightly lower prices" - Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers European stocks edged higher on Monday on China’s pledge to boost growth. USD "Equity prices have gotten oversold" - Mark Luschini, chief investment strategist for Janney Montgomery Scott LLC U.S. equity market edged higher on Monday on China stimulus hopes and after German and French officials said they would cooperate to keep Greece in the monetary union. GBP "Obviously, as the euro depreciates, the U.K. gets slightly more expensive" - Miles Shipside, Rightmove commercial director U.K. national house prices stagnated in March, announced the ...

Fundamental Analysis EUR "Fears of a Greek exit from the euro zone and the negative consequences from that are prevailing" - Ben Kwong, KGI Asia European stocks edged lower after Fitch downgraded Greece’s credit rating to ‘CCC’, implying that the country is vulnerable and highly dependent on favourable economic conditions to fulfill its financial obligations. USD "If there were scope to do another twist of some type it would be prudent to consider it, especially in the scenario where things are worse and the Fed feels like it needs to move" - Nathan Sheets, Citigroup Inc. Fed policymakers might potentially launch another round of Operation Twist rather than a direct asset purchases in case of increased risks or further weakening of the US economy. GBP "We must work together to give ...

The Week Ahead Highlights Europe steps closer to the cliff edge Can the USD extend its rally? Bank of Japan may extend maturity of its bond buys Pricing in more QE from the Bank of England Europe steps closer to the cliff edge It was a pivotal week for the Eurozone after Greece announced that it was heading back to the polls after the top three parities failed to form a coalition government. So now Greece is leaderless, there is a caretaker government in place but it won't be able to enforce the austerity required to get the next tranche of bailout funds necessary for Greece to avoid running out of money in July. So as time runs out for Greece the European authorities have been clear: the upcoming election is a referendum on euro-membership. Either vote for pro bailout ...

Fundamental Analysis EUR "Spain, once again, is where the confidence game is played" - Sebastian Paris Horvitz, strategist at HSBC Private Bank Suisse Spain sold the maximum targeted amount of debt, 2.5 billion euros, during yesterday’s auction with spiking borrowing costs. The interest rate of three-year bonds rose to 4.373% from April’s figure of 2.89% while interest rate of five-year bonds surged to 5.106% from 3.374 in March. USD "What we’re seeing in foreign-exchange markets is strong demand for the U.S. dollar" - Steven Saywell, head of foreign-exchange strategy for Europe at BNP Paribas SA Latest US initial unemployment claim data was released yesterday – 370 000 Americans demanded their jobless benefits last week versus a 368 000 consensus forecast. The Labor Department revised ...

Fundamental Analysis EUR "Industrial producion is a imely reminder that firstquarter GDP will likely show a contracion." - Marin van Vliet, an economist at ING Industrial producion in the Eurozone contracted unexpectedly in March, Eurostat data showed on Monday. Producion fell 0.3 per cent from February, when it rose 0.8 per cent. USD "The fear factor is definitely higher." - Madelynn Matlock, a fund manager at Hunington Asset Advisor U.S. stocks retreated on Monday on a poliical impasse in Greece. GBP "I can’t see even after the next Greek election a government appearing that will be able to do anything else than perhaps manage the Greek exit." - Simon Sole, chief execuive officer of Exclusive Analysis Ltd. U.K. stocks tumbled on Monday. The benchmark FTSE 100 Index fell 1.97%, or ...

Asian stocks dropped, with the MSCI Asia Pacific Index sliding 0.9% at 14:00 in Tokyo, as the Greek political deadlock continues, the slowdown in China’s economy was confirmed again while Europe’s economy is expected to shrink for the first time since 2009. Greece continues to put the euro zone unity at risk, as the political parties are still in talks for a ninth day today, in a last attempt to form a government and avoid another round of elections in June, during which the far-left anti-bailout party Syriza is expected to win, which may push the country to exit the eurozone. Also weighing on sentiment was Moody’s decision to downgrade 26 Italian banks yesterday, fueling concerns over Europe’s growth and keeping risk appetite subdued, especially before a report that may show Europe’s ...

Dukascopy Fundamental Analysis EUR Industrial production in the 17 countries that use the euro fell unexpectedly in March, leaving little doubt the region contracted for a second straight quarter in the first three months of the year and returned to recession, data by Eurostat showed Monday. USD Stocks fell, commodities declined to their cheapest level this year and the euro weakened to a three- month low on concern that Greece will exit the single European currency and after German Chancellor Angela Merkel’s party lost a state election. GBP The government, and many economists, say the U.K.'s austerity plan has succeeded in reassuring financial markets that the government is focused on wrestling down the country's debt, which had ballooned to the highest levels since World War II. As a ...