Investing.com - Financial Markets Worldwide

US Fiscal Cliff And European Debt Crisis Focus Of Attention

ByThe National Bank of Canada
Published 11/11/2012, 06:35 AM
Updated 05/14/2017, 06:45 AM

With the U.S. elections behind us, the situation in Europe and the American fiscal cliff are now front and centre in investors' minds. European Central Bank (ECB) President Mario Draghi stated yesterday that the economic situation on the Old Continent was deteriorating and that the ECB was prepared to take action on markets. We are therefore carefully monitoring developments in credit spreads in Spain and Italy, which have been widening over the past few trading days.

Fears surrounding the U.S. fiscal cliff could continue to serve as a pretext for additional profit-taking over the coming weeks. Although politicians will probably come up with a last-minute solution, it does increase fears for a return to recession for the U.S. economy. This increased risk aversion is weighing heavily on U.S. equities, the loonie and crude prices, which are down 4%, 2% and 8% respectively since the start of the fourth quarter.

A great deal of volatility can be expected this morning, with the University of Michigan's Consumer Sentiment Index to be announced at 9:55. Asian and European markets are currently down while the Canadian dollar is losing ground against the greenback.
Economic Data

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.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.