Havoc In The Financial Markets

Major European PMI Manufacturing data misses expectations; German IFO Business Confidence falls for the first time in 7 months Economic Data (RU) Russia Gold & Forex Reserve w/e May 18th: $514.3B v $518.8B prior (DE) Germany Q1 Final GDP Q/Q: 0.5% v 0.5%e; Y/Y: 1.7% v 1.7%e; GDP WDA Y/Y: 1.2% v 1.2%e (DE) Germany Q1 Private Consumption: 0.4% v 0.2%e; Government Spending: 0.2% v 0.3%e; Domestic Demand: -0.3% v 0.0%e; Capital Investment: -1.1% v -0.3%e; Construction Investment: -1.3% v -0.4%e; Exports: 1.7% v 0.9%e; Imports: 0.0% v 0.3%e (CH) Swiss Apr Trade Balance (CHG): 1.3B v 1.9Be; Real Exports M/M: -0.9% v +0.2%e; Real Imports M/M: 2.6% v 5.9% prior (FI) Finland Apr PPI M/M: -0.1% v +0.4% prior; Y/Y: 1.4% v 1.4% prior (FI) Finland Apr Preliminary Retail Sales Volume Y/Y: -2.0% v ...

The political havoc in Greece remains the predominant concern across markets as investors see the inability to form a government is the tick to new elections and a political vacuum that might cost Greece its euro membership. Haven demand is heading towards low yielding currencies and keeping greenback afloat while pressuring precious metals as investors liquidate gold to keep the cash amid the high uncertainty! It is surely a new bearish start for metals this Monday with gold extending the losses below $1579.00 support and eying next areas of $1552.00. The metal is unable to regain its appeal as a precious haven despite the appropriate environment now amid the high uncertainty over the global growth outlook and stability in Europe, as the need now remains for liquidity amid the pressure ...

(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 ...

(Reuters) - European shares fell on Tuesday, on track for two days of losses, as talks in Greece on a second bailout continued and after some company earnings including UBS (UBSN.VX) and Alfa Laval (ALFA.ST) reflected a slower growth environment in Europe. Investor sentiment fell as Greek leaders faced crunch talks to secure a fresh bailout package and avoid a messy default, which could cause havoc in the financial markets, although European shares were holding above a major resistance level. "The consequences of a Greek chaotic default is so serious and would not be in the interest of anyone," said Bill Dinning, head of investment strategy at Kames Capital in Edinburgh, which has $76.4 billion under management. "Policymakers in Europe certainly have the means to prevent it from ...

European shares hit a fresh six-month closing high on Thursday, after U.S. weekly jobless claims showed the market was improving, while Xstrata (XTA.L) and Glencore (GLEN.L) led the risers on confirmed merger talks. Gains, however, were capped as the FTSEurofirst 300 index .FTEU3 failed to break a major resistance level as uncertainty grew about Greek debt swap talks needed to avoid a messy default, which could create havoc in the financial markets. In a reminder of the gravity of the situation, U.S. Federal Reserve Chairman Ben Bernanke said Europe's financial crisis still threatens the U.S. recovery, while head of the euro zone finance ministers' body Jean-Claude Juncker described Greek debt talks as "ultra-difficult." Miner Xstrata and commodities trader Glencore took the top spots, ...

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 ...