Euro

The key event of the week in the financial markets has arrived as traders eagerly await the speech from Federal Reserve Chairman Ben Bernanke at Jackson Hole, Wyoming. Speculation as to what the context of the speech will include, however the focus is due to whether there will be another round of quantitative easing (QE3). Many analysts and market commentators had voiced that this is all but a done deal, however it opinion seems to be split as to whether it will be announced. The Presi…

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Fears of contagion swept through the European session yesterday, as yields rose on Spanish and Italian bonds and investors found the safety of Gold. The recent positive sentiment towards the US had led to the overhanging issues of Europe been overlooked. However following the disappointing employment figures from the US on Friday combined with bearish data from Europe has led to a reignition of fear. The yield on the Mediterranean Government bonds is close to previous levels that promoted ba…

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Economic data released this morning shows that the UK economy has entered a technical recession. This is deemed as two consecutive quarters with negative GDP. Economists has expected slight growth, compared to the actual shrinking of the economy. The Office for National Statistics said that the negative growth was due to a sharp fall in construction output. This is a disappointing release for the Chancellor George Osborne as the shadow of recession covers the country once again.…

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Overnight Asian equity markets rose after the Japanese economy shrank less than the government estimate, which saw the regional benchmark index rising after a three consecutive negative sessions. The Yen weakened against all the majors after Japan announced a record current-account deficit. A committee of UK MPs and peers have warned that ministers should detail plans for the scenario of a Euro-zone break-up“as a matter of urgency”.The National Security Strategy believe tha…

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