European markets have been lifted following the formation of a new Greek government, alongside expectations that eurozone leaders are poised to announce a €750-billion bailout for Spain and Italy. In addition, news that 37 countries have pledged additional bailout funds to the IMF (bringing the total to $456 billion) has also lifted spirits. The euro has pulled back above $1.27, while the yield on Spanish 10-year sovereign debt has fallen below the 7% “dangerzone.” Equivalent Italian yields have fallen below 6%.
Minutes from the Bank of England’s last Monetary Policy Committee meeting also indicate that that institution is gearing up for another £50 billion’s worth of quantitative easing. Though the Committee voted 5-4 against more easing at the start of this month, all members thought that fresh action would likely soon be needed. As reported yesterday, a fall in the UK Consumer Price Index from 3.0% to 2.8% from April to May is the perfect excuse to fire up the printing presses once more.
We shall of course find out shortly what decision the FOMC has come to on the near-term direction of US monetary policy. Art Cashin’s thoughts on this are worth reading. Given the lack of liquidity in the gold and silver markets at the moment – as seen in the collapse in Comex gold and silver open interest since late last year – this decision could be the spur for some big price moves.
- English (UK)
- English (India)
- English (Canada)
- English (Australia)
- English (South Africa)
- English (Philippines)
- English (Nigeria)
- Deutsch
- Español (España)
- Español (México)
- Français
- Italiano
- Nederlands
- Polski
- Português (Portugal)
- Português (Brasil)
- Русский
- Türkçe
- العربية
- Ελληνικά
- Svenska
- Suomi
- עברית
- 日本語
- 한국어
- 简体中文
- 繁體中文
- Bahasa Indonesia
- Bahasa Melayu
- ไทย
- Tiếng Việt
- हिंदी
New Euro Bailout Hope Sends Equities Higher
Published 06/21/2012, 01:00 AM
Updated 05/14/2017, 06:45 AM
New Euro Bailout Hope Sends Equities Higher
Latest comments
Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.