Havoc In Credit Markets

(Reuters) - Families took on more debt in late 2011 for the first time in 3-1/2 years but a rise in after-tax incomes left consumers in better shape to spend. Other data on Thursday showed the number of Americans filing for jobless benefits rose last week, but not enough to change perceptions the labor market was strengthening. The economy is still limping back from a financial crisis that wreaked havoc on household finances and put millions of people out of work. However, rising incomes eased the pinch in the fourth quarter. The ratio of household liabilities to after-tax income - a broad measure of the debt burden - fell to 117.5 percent, its lowest level since 2004. Economists are unsure how much more that debt burden must decline for consumers to feel normal again, but Thursday's ...

(Reuters) - The euro gained in Asia on Tuesday, popping above resistance at its 90-day moving average after euro zone finance ministers sealed a bailout package for Greece, though some analysts doubt the news will give the currency a big fillip. The agreement on the 130 billion euro ($172 billion) bailout program, while long expected, will help Greece meet repayment needs next month, sparking a knee-jerk, 100-pip rise in the euro against the dollar. The euro rose as high as $1.3293, its highest in nearly two weeks, before stabilizing at around $1.3265, about 0.2 percent higher than late Monday levels in London. U.S. financial markets were on holiday on Monday. The common currency, in its third attempt in recent weeks, pierced its 90-day moving average at $1.3273, and traders say a ...

(Reuters) - Stocks edged higher on Tuesday as investors awaited the outcome of discussions on a bailout package for Greece that is critical to the country avoiding a chaotic default. Greek officials worked on the draft of a text on the 130-billion-euro bailout plan that will be put to political leaders for approval while strikers protesting against more austerity tussled with police outside parliament. A light U.S. economic calendar this week shifted investor focus back to the euro zone. With the S&P 500 up nearly 7 percent this year the market has grown hesitant before Greek leaders put pen to paper on the terms of the deal. An improving technical picture for equities, reasonable earnings, better economic data and optimism over Europe's debt crisis were all boosting stocks, said Marc ...

European shares were pulled lower on Monday afternoon by weaker banks hit by concerns that no solution has yet emerged from talks between Greece and private bondholders. French banks suffered more than most after President Nicolas Sarkozy said a French financial transaction tax would be set at 0.1 percent. Negotiations between Greece and private bondholders over the restructuring of 200 billion euros ($263 billion) of Greek debt, which made progress over the weekend, were not expected to conclude before an EU summit begins at 1400 GMT. Investors are hoping for a deal to avoid a messy default by Greece, which could cause havoc in the financial system and hit company profits. "It's one of those days when investors worry again about whether Greece can be solved and private investors will ...

(Reuters) - European shares were pulled lower on Monday afternoon by weaker banks hit by concerns that no solution has yet emerged from talks between Greece and private bondholders. French banks suffered more than most after President Nicolas Sarkozy said a French financial transaction tax would be set at 0.1 percent. Negotiations between Greece and private bondholders over the restructuring of 200 billion euros ($263 billion) of Greek debt, which made progress over the weekend, were not expected to conclude before an EU summit begins at 1400 GMT. Investors are hoping for a deal to avoid a messy default by Greece, which could cause havoc in the financial system and hit company profits. "It's one of those days when investors worry again about whether Greece can be solved and private ...

World stocks hovered near a 5-1/2 month high on Friday as investors anticipated an imminent conclusion to Greek debt talks while lower Spanish bond yields and a fall in Italy's six-month borrowing costs also supported the euro. Sentiment was also buoyed by expectations that upcoming U.S. data would show the world's largest economy grew at its fastest pace in nearly two years at the end of 2011. . Stock futures pointed to a steady market open on Wall Street. EU Economic and Monetary Affairs Commissioner Olli Rehn said talks with private creditors on restructuring Greek debt are "very close" to closing. Athens needs a deal quickly to avert an unruly default when a major bond redemption comes due in March, an outcome which could wreak havoc across financial markets. The mark-up investors ...

Weekly Economic and Financial Commentary U.S. Review Modest Recovery Is Still Under Way Retail sales in September delivered an upside surprise, rising in nearly every major category. The stronger-than-expected increase was led by motor vehicle purchases and solid back-to-school sales. Another sign the economy continued to gain some momentum was the recently released data on the trade balance. Based on our calculations, trade could make a modest contribution to real GDP in the third quarter. Initial jobless claims fell to 404,000, but the Job Openings and Labor Turnover Survey showed there are 4.6 unemployed job seekers for each available job. No News Is Good News The flow of economic releases this week was fairly light, but data continued to reflect an economy that is ...

(Reuters) - Brent crude slipped on Friday after rating agency Standard & Poor's warned it may lower the credit rating of top consumer the United States, capping a volatile week marked by concern about the country's deficit and the euro zone's debt. Investors turned cautious ahead of the result of Europe-wide stress tests on 90 banks due at 1600 GMT, which could force some to seek state aid. Brent crude for September fell 26 cents to $116 a barrel by 0629 GMT, about $11 below its 2011 peak, after the expiry of the August contract on Thursday at $118.32. U.S. crude, up 6 cents at $95.75, fell more than $2 on Thursday and was poised to end the week little changed after tumbling below $94 on Tuesday and topping $99 on Wednesday. S&P joined Moody's Investors Service in putting the United ...

(Reuters) - After years of resistance, the lucrative practice of high frequency trading is growing across Asia, driven by market demand, stock exchange consolidation and greater acceptance among regulators. The move by regional exchanges to open up to computer-driven trading has led to increasing numbers of algorithmic and high frequency traders setting up shop across Asian markets, using complex, automated strategies to execute trades within the space of 10 millionths of a second. Client demand and a growing desire by exchanges to stay current has influenced Asian regulators to allow the practice, which has been openly embraced in the United States and Europe. Also driving the change of sentiment is consolidation between U.S. and European bourses that could leave Asian markets on the ...