Sail-World.com : Collinson FX Market Commentary: 22 May 2012 - Markets rebound
Collinson FX Market Commentary: 22 May 2012 - Markets rebound
|
Collinson FX market Commentary: 22 May 2012
Markets rebounded overnight as last weeks losses sparked bargain hunters to return. The G8 summit closed with little achievements and a new platitude.
Growth is the word now catering to the new political mantra from newly elected French President. The aspirational notion of 'growth' is what all countries desire. It is a conceptual economic desire all countries have such as profitability, balanced budgets, surplus, low inflation etc. The only problem is how to achieve these growth targets.
The French idea seems to be to invest through borrowing. A new plan is afoot to raise debt through EU backed bonds. A new socialist concept of spreading the risk and responsibility for borrowings. Socialized debt across EU members would be repugnant to Germany who would assume many of EU debts on behalf of the Citizenry.
The Chinese Premier backed calls for growth with inflationary pressures subsiding and everything to gain from economic stabilisation of its markets.
This boosted commodity currencies with the KIWI stabilising at 0.7620 and the AUD moving to 0.9870. The EUR remains weak trading 1.2770 with Greece extremely vulnerable.
G8 members advocated support for Greece to remain in the Eurozone but the Bank runs in Greece and Spain threaten the Banking sector and the EU. The dyke is springing leaks and Politicians have limited fingers. Keep watching the train crash!
Collinson FX market Commentary: 21 May 2012
Equity Markets were preoccupied with the unprecedented float of Facebook which was impeded by technical errors on the Nasdaq which may be a sign of foreboding!?
Equity markets were finally awakened to the omnipresent nightmare that Europe has become. Moody's downgraded 16 Spanish Banks which attacks the EU Banking system and the very heart of the EU.
Attention now turns to the G8 meeting this weekend at Camp David and any solutions they may provide. These International meetings offer little in historical terms but provide fantastic photo shoots on the world stage. Great for the political egos!
The EUR continues to melt, trading at 1.2770 and the GBP down to 1.5810.
In the US, markets were totally preoccupied with the new IPO and with little economic data to drive markets, they were engulfed with the negativity spreading from Europe.
Commodity based currencies continued to collapse with the KIWI falling out of bed. The NZD dropped to 0.7550 and the AUD looking to test 0.9800.
Next week will look at economic data and in particular housing in the US but they will be overwhelmed by events unfolding in the European train crash!
For more on Collinson FX and market information see:
www.collinsonfx.com and www.collinsonwealthmanagement.com
Countries: | NZ: 0800 338 838 | AU: 1800 143 415 | NY: 1888 6257 833 | UK: 0800 0285 834 |
Disclaimer: The details expressed in this website and accompanying documents or transmissions are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Collinson Forex Ltd accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site.
by Collinson FX
Click on the FB Like link to post this story to your FB wall
http://www.sail-world.com/index.cfm?nid=97519
7:18 PM Mon 21 May 2012GMT
Click here for printer friendly version
Click here to send us feedback or comments about this story.
Click for further information on
2011 Collinson & Co
Related News Stories:
MORE STORIES ...
|
|
|
|
Our Advertisers are committed to our sport, please support them!
This site and its contents are © Copyright TetraMedia Pty. Ltd and/or the original author, photographer etc. All Rights Reserved.
Photographs are copyright by law. If you wish to use or buy a photograph you must contact the photographer directly (there is a hyperlink in most cases to their website, or do a Google search.) with your request.
Please do not contact
Sail-World.com
as we cannot give permission for use of other photographer’s images.
Only if the photographer named on the image is Sail-world.com, Powerboat-world.com, Marinebusiness-world.com or NZBoating-World.com.
Contact us
.
Ph: +61 2 8006 1873
or complete our
feedback form
Contact us
.
View our Privacy Policy.
[ Go Home]
[ Banner Advertising Specification]
[Bot Archive ]
Customised news feeds -Marine Industry companies, Clubs and Associations have their own customised version of our news feed on their website.
Look_here_to_see_examples
|
CLD
| | |
