Fitch Ratings indicated that they may downgrade the sovereign debt of seven European nations. France is one of the European nations facing a downgrade from Fitch. The six other nations are Belgium, Cyprus, Ireland, Italy, Slovenia, and Spain.
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James Sutliff
On Wednesday, Federal Reserve Chairman Ben Bernanke met with Republican Senators to discuss the European Union sovereign debt crisis. According to GOP Senators, Bernanke indicated that the European debt crisis could significantly impact the American economy. The Euro fell below $1.30 in afternoon trading.
To read a related CNN Money article, please click here:
http://money.cnn.com/2011/12/14/news/economy/bernanke_europe_senate_gop/index.htm
Jim Sutliff
The Euro fell on news that Moody’s is considering a downgrade of European Union sovereign debt. The inability to end the debt crisis is one factor in the Moody’s decision. In currency trading, the Euro fell to $1.3184 which is the lowest mark since October 4th. Also, Italian bonds declined in trading.
To read a related Bloomberg article, please click here:
James Sutliff
European leaders reached an agreement on centralized fiscal policy. The agreement is supported by all 17 euro zone countries as well as the 9 countries seeking to join the union. England did not approve the fiscal plan. Stock markets reacted positively with the Dow Jones rising 163.44 points.
To read a related Fox Business article, please click here:
http://www.foxbusiness.com/markets/2011/12/09/european-leaders-give-markets-what-wanted/
Jim Sutliff
The Federal Reserve may provide another round of quantitative easing. The breakdown of the budget negotiations between Republicans and Democrats are one factor that could lead to QE3. Quantitative easing may lower long term interest rates and help with the recovery of the housing market.
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James Sutliff
The Dow Jones Industrial Average fell more than 200 points in light trading on Wednesday. The drop marked the sixth straight day that the Dow Jones posted a loss. European debt concerns and weak production numbers forced prices lower.
To read a related Reuters article, please click here:
http://www.reuters.com/article/2011/11/24/us-markets-stocks-idUSTRE7AA3VY20111124
Jim Sutliff
A paper released by the Federal Reserve Bank of San Francisco indicates that the crisis in Europe could trigger a 2012 recession in America. According to the paper, the chances of a recession in the first six months of 2012 have increased to 50%.
To read a related Bloomberg article, please click here:
Jim Sutliff
Stock futures are lower as traders focus on Italian bonds. Bond yields for Italian debt have climbed and Berlusconi may step down as Prime Minister. The 10 year Italian government bond yield rose to 6.58%. The Dow Jones Industrial Average closed at almost 12,000 on Friday.
To read a related MarketWatch article, please click here:
http://www.marketwatch.com/story/us-stock-futures-sink-on-italy-worries-2011-11-07?dist=beforebell
Jim Sutliff
