ZuluTrade Blog

IMF urged the EU to take the necessary measures to prevent Europe from falling deeper into the crisis

Market View | Friday, June 22, 2012 3:38 AM GMT

Good Morning ,

- Equity markets and risk trades continued to tumble overnight after weak
data yesterday across the globe. The IMF also urged the EU to take the
necessary measures to prevent Europe from falling deeper into the crisis.
EURUSD trades on one weak lows (1.2540 so far).

- Stocks: Nikkei -0.26 %, Hang Seng -1.08 %, Shanghai Composite -1.40 %,
Dow Jones -1.96 %, S+P500 -2.23 %

- The euro area crisis has reached a "critical stage" and member nations must
make a "strong commitment" to the shared currency to stop the plunge in
investor confidence, the International Monetary Fund said in a report that
recommended issuing common debt as one solution.

- Luxembourg PM Juncker said the results of the so-called troika's review
of Greece are needed before any decision is made on adjustments to the
agreement covering its second bailout.

- Italy is missing its target to lower the budget deficit to 1.7 percent of GDP
in 2012 and more spending cuts are needed to achieve the goal, Treasury
Undersecretary Gianfranco Polillo said on Thursday. According to a transcript
of Polillo's speech to the lower house of parliament, he said that Italy was
missing its 2012 target by four billion euros, which would have to be
compensated by extra spending cuts.

- Ratings agency Moody's downgraded 15 of the world's biggest banks on
Thursday, lowering credit ratings by one to three notches to reflect the risk
of losses they face from volatile capital markets activities, but banks
criticized the move as backward looking.

- Spain's banks would need as much as 62 billion euros in capital to withstand
a worst-case economic scenario, according to two consulting firms hired by
the government to conduct stress tests on the lenders.

- Bank of England policy maker Martin Weale said cooling inflation is creating
"appreciably more room" to add to asset purchases as policy makers shift
toward restarting their stimulus program.

- China's banking regulator proposed keeping a cap on local government loans to
curtail defaults while encouraging funding for railways, roads and affordable
homes, a person with direct knowledge of the matter said.

- no major US Data
- 1830 Fed Pianalto
- 0845 France Wages Q1
- 1000 Germany IFO June
- 1000 Italy Consumer Confidence
- 0900 Ecofin Meeting
- 1400 Monti/Merkel/Rajoy/Hollande Meeting
- 2000 Monti/Merkel/Rajoy/Hollande Press Conf

- 1430 Canada Retail Sales Apr
- 1000 Switzerland KOF June Economic Forecast


Have a nice weekend !

Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.