Investor sentiment wasn’t done any favours yesterday as the markets awaited a resolution on Greece elections followed by a rise in Spain credit risk. Equity markets saw broad falls with investors fearing the worse, Gold and Silver slid to 4 months low as the Dollar strengthened against the Euro.
The possibility of a messy default by Greece is overly weighing on the markets, even though corporate earnings and overall outlook seems to be getting better. The tug of war between Germany and Greece on adherence to the original austerity plans would have to be settled before the current turmoil can be considered to be coming to an end
China's strength in the face of the global recession appears to be waning again. Their stocks fell to a quarterly low as export and import numbers showed less than a rise than expected forcing Asian bonds to the highest level since the start of the year. European lack of buying is mostly to blame as EU imports have fallen sharply since the start of the Euro crisis and Chinese exports wont be able to recover until EU companies regain the confidence to resume their 'normal' buying patterns.
Posted by Khurram Ali (email@example.com)