Lasting Solution Continues

Sunrise Market Commentary - Fixed Income: Fresh elections in Greece further support core bonds - German bund came off the contract highs at the start of the session on better German Q1 GDP data. The move didn't last long however and the announcement of fresh Greek elections marked an intraday U-turn. This morning, the German Bund future and US Note future once again reach new contract highs. - Currencies: euro sell-off accelerates as Greece will hold now elections. - On Tuesday morning it looked temporary that the euro might enjoy some breathing space as the German Q1 growth was much stronger than expected. However, the rebound had no momentum at all. The euro was again hammered as talks on the formation of the Greek government collapsed. Is the euro heading for a free fall? ...

Fiscal year-end repatriation flows supported the yen across the board on Wednesday, while the euro was little changed against the dollar after a warning from an ECB official about resolving the debt crisis. The yen edged higher early in the session as Japanese exporters prepared to close their fiscal year on March 31. But analysts said they expected the repatriation effect to be short-lived. Though moderate, a rise in U.S. durable goods orders in February was enough to refocus investors on problems in the euro zone, particularly after cautious comments from European Central Bank Governing Council member Jens Weidmann. Weidman's comments come before a meeting of European Union economic and financial affairs ministers in Copenhagen on Friday and Saturday. "In general as you get closer to ...

The euro slid against the dollar on Wednesday as investors discounted dovish comments from the U.S. Federal Reserve chairman earlier in the week and refocused on the euro zone after comments from an ECB official warning about resolving the debt crisis. The single currency received a boost on Monday when Fed Chairman Ben Bernanke spurred expectations the bank could yet launch a third round of quantitative easing if the U.S. economy needed a boost. Though moderate, a rise in U.S. durable goods orders in February was enough to keep investors focused on the euro zone, with cautious comments from European Central Bank Governing Council member Jens Weidmann adding to wariness around the euro. Weidman's comments come before a meeting of European Union economic and financial affairs ministers ...

(Reuters) - The euro hit an eight-week high against the dollar on Tuesday, helping lift stocks and commodities on signs a Greek bailout agreement was near, but the rally paused after a key meeting on Greece was postponed by a day. The euro rallied after Greece appeared to be close to terms on a 130-billion-euro bailout. A government official said Athens was drafting a list of painful reforms to clinch a new financial package, moving it a step closer to a deal that is needed to avoid a chaotic debt default. But a meeting of Greek political leaders was postponed until Wednesday because a draft of the bailout's terms was still not available, a party official said. The euro at one point jumped more than 1 percent to a session high of $1.3270, hitting its highest level since December 12. ...

(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 ...

Stocks gave up early gains to turn flat on Tuesday, weighed down by mixed corporate earnings and weaker-than-expected data on Midwest business activity and consumer confidence. Major indexes had opened higher on hopes a deal on a Greek debt swap was near and as European leaders showed signed of making progress in dealing with Europe's long-running sovereign debt crisis. Business activity in the U.S. Midwest grew more slowly than expected in January due to a weaker labor market, according to the Institute for Supply Management-Chicago business barometer. Also, consumer confidence came in far below forecasts. Shares of Exxon Mobil fell while Eli Lilly and UPS advanced as their quarterly reports reflected a mixed picture of corporate strength this earning season. "Earnings in general are ...

While talks between Greek government and institute of international finance progress, eyes and hearts are fixated to the long lasting story of Greece debt resolution, although reports suggested that a deal between the bond-holders and government is imminent the euro took a hit by weak start, after ending the last week at 1.3219, the pair dropped sharply on Monday to erase most of Friday’s gains printing a low at 1.3109. The jitters continue and market participant are anxious that today’s euro summit well maintain its latest trend of disappointments, as at this juncture the euro leaders are to continue discussing the measures they suggested before about approving and signing a treaty to create the euro rescue fund (ESM) of 500 Billion worth of Euros effective by July, and maybe combining ...

Reaching the Summit, Facing the Cliff Edge Rebound in risk sentiment underpinned by hopes for the coming week's EU summit. EU leaders's appear to be converging and entrenched positions softening, but risks are high. Modest 0.25% ECB rate cut expected, Bank of England to hold off more QE until January. Risk sentiment improved sharply this week with Euro area stock markets posting gains of 10%+. The turnaround in sentiment appears to have been motivated by hopes of a resolution to the Euro area crisis. But the liquidity support operation announced by the major central banks clearly helped, as did the easing in monetary policy in China and Brazil. Against this background, hopes are riding high that the coming week's key EU Summit will deliver a lasting solution to the Euro ...

The world's largest economy prepares to unwrap more surprises this week, following a week full of events in fact, as the U.S economy returns with much more important fundamentals covering most of the key sectors where we'll be watching the release of the third-quarter GDP estimates, income and housing data along with two gauges of consumer sentiments, besides more U.S companies will announce quarterly earnings in the next five days. If truth be told, we are standing on a threshold of a hectic week, especially as markets are closely awaiting new signs of progress over the U.S economy while many companies managed to post solid quarterly earnings so far, but at the meantime, mixed vibes and growing uncertainty continue on straining market trading, while Europe’s debt crisis remain in focus ...