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INVESTORS’ CONCERNS OVER the future of the euro did not appear to be allayed today as stock markets fell across Europe amid fears that the fiscal compact agreement in Brussels last week was not enough to bring stability.
Shares did rally on news of a deal last Friday morning and closed strongly at the end of the week but analysts are warning that the deal, which will enshrine greater budgetary discipline in the eurozone, does not deal with the existing debt issues in Greece, Ireland and Portugal.
There also continues to be concerns about the mounting debt problems in Italy and Spain where the yield on 10-year bonds were at 6.5 and 5.7 per cent today.
On the stock markets, the UK’s FTSE 100 was down by nearly 2 per cent at the close of play, the Cac 40 in Paris was down by over 2.5 per cent and the Dax in Germany was down by over 3 per cent.
Shares were mixed at the close of play in Asia earlier today while in the US – at the time of writing – the Dow Jones and the Nasdaq are both down by around 1.7 per cent.
“The (EU) measures may not be sufficient for markets, with disappointment at the lack of ECB action in terms of stepping up to the plate as lender of last resort still weighing on sentiment,” said Mitul Kotecha, analyst at Credit Agricole CIB referring to last week’s statement by the ECB president Mario Draghi.
- additional reporting from AP
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Up and down and round and round it goes…this is getting very tiresome reading about the fickle markets…we can’t alter them..we can’t influence them and we can’t control them….so are we lstening to them??
Because we can trade them and make money! Take a look at the euro against the British dollar which dropped from 0.8550 to 0.8460 today. Almost 1c drop which in trading terms is 90pips to a forex trader.
British dollar??….how long have I been off this site??
Seriously, I’m getting quite tired of this shit. It’s always, “Yay, they’ve fixed everything.”, then ten minutes later, “JANEY MACK, WHERE’S ALL THE MONEY GONE??!!??” etc. etc. or words to that effect.
It is getting very, very tiresome indeed.
The markets want us to go to the ECB and when that happens the bankers coup d’etat is complete. Burn them all cause they are the root of the problem not Markosy.
+1
This is the view I’ve come to, much as I despise the “debt” and what it’s done to this country, I think that the real issue here is to regulate, control and neutralise the power of the markets in so far as possible – above all else, they’re the ones who’ve gotten us here.
Basically, they just want the European taxpayer to pay for their mistakes … but keep going, business as usual otherwise. I was actually pleasantly surprised by the deal, especially when it comes to European financial services regulation and a Tobin Tax – I’m sure that our friends in Frankfurt and the City just wanted buckets more money, and for us to leave them alone otherwise.
The problem with taking this course is that the markets are more powerful than any sovereign government, possibly more powerful than the EU as a whole, a new Second Estate to my way of thinking.
Niall you’re not nailing your flag to the mast very well. We all know the Market’s are calling the shots and that Mercozy are as scared as anyone.
You say you’re pleasantly surprised by the deal and then you go and mention it might lead to a Second Estate. I’m usually quite clear where you stand after reading your posts but now I’m mind boggled. Just another day I suppose.
Don’t tell me it’s all back on with TINA?
Ha, that Tina … quite the temptress.
I guess that I’m not nailing my colours to the mast because I’m just not sure.
There have been a lot of unexpected positives in the direction taken – if it had been a situation of a round of quantitative easing, with the taxpayer ultimately footing the bill, I would have been back to the usual Merkozy, handmaiden of the markets type territory. And I’m sure that Frankfurt and the City would have been delighted. Definitely a curveball, will probably take ’till after Christmas to really make my mind up on it.
But, I think we already have a Second Estate – known colloquially as “The Markets”. It’s like a modern-day feudal fiefdom, to my way of thinking.
Keep being reminded of a bit from that movie The Network, great show, best known for “I’m mad as hell and I’m not going to take it any more” … think things may get a bit:
It is the international system of currency which determines the totality of life on this planet. That is the natural order of things today. That is the atomic, and sub-atomic and galactic structure of things today.
And YOU have meddled with the primal forces of nature. And you will atone.
Are you going to leave me wondering what YOU stands for now. Took hours to find out TINA. Took you minutes to figure out TUTPASA :)
Sorry Niall. Gotcha.
Have YOU seen the movie? Great watching … do not dare blaspheme against The Markets.
I’m not sure if my overwhelming hatred for Cameron and the Tories isn’t clouding my judgment here … if they’re against it, then it mustn’t be all bad.
But, no. The logic is that I don’t think any single nation in Europe, least of all Ireland – look at attitudes towards our sacred corporation tax – would muster the political will, or would be capable, even if it did, to bring Free Enterprise back under control. This is the single greatest challenge of our times, I think.
Holding out on bringing in the ECB is a positive for me, would have been much more worried about a move to fill the trough with even more made-up money, to be recouped from the European taxpayer at a later date. What I see in this agreement is a possible first step towards making the markets serve the people.
I mean, balanced books aren’t a bad thing, we don’t want to become beholden to The Markets to such an extent again. And, taking it that we can fight the taxation, spending and public services battle domestically, we may even win it eventually. And if we get Obama with a freer hand on his second term, maybe worldwide action on this might be possible …
Ok, I’m really going off on one now, but I’m kinda sick of all the doom and gloom. In my heart, I kinda know that the opportunity will pass and we’ll end up with TUTPASA before too long. But, for the moment, I’m willing to reserve judgment on this, it might just work.
Or maybe I’m just part of a generation that was subtly brainwashed by Zig and Zag:
Lol. Not as scary. I do nothing except blaspheme against the Markets. Lucky I’m not in Saudi or they’d chop my head off. Lucky for me. Maybe not for ye. :)
Tories would never be my favs either. Surprise surprise. You’re zig zagging a lot granted. Definitely time for laughing and TUTPASA imo.
Money is just a piece of paper, a symbol of energy. Markets are a disgrace the way they stockpile food, etc which costs more than it would to give it. Moving into bob Dylan there. Better stop…
Ho Ho Ho… meerrry Christmas!
someone throw a few bondholders on the fire there
As for the markets,can’t get my head round this shit. 1.how unstable could Italy be,a country with the forth largest reserves in the world.. 2. I have economists chatting for months now,they don’t even know what is happening 3 who the hell are these rating agencies, how have they so much control over whole countries. Is there any politicians in Europe with the balls to tell them to piss off. Me is a very confused bunny.
Italy with the fourth largest reserves. Of what? Ice cream?
Sorry guys I meant to say that italy has the 4 largest gold reserves in the world
It’s all part of the masterplan, keep the little fella down and big guys make more money…. Maybe
Oh dear…. I sent them another book, “How to Boost your Self Confidence” over the weekend. Maybe they haven’t read it yet… Don’t worry Mercozy – we’re all rowing in behind ye.
So what if the markets tumble and the rich lose all their money??? It won’t make any difference to the poor feckers living on the dole or on slave wages. Let the markets implode, better still, tear them down and stop this destructive, disgusting lust for wealth that rewards greed and punishes ordinary working people. Eventually Capitalism will destroy itself, we might as well dismantle it ourselves in a controlled manner. Starting with the obscenely rich institutions and individuals that are causing global economic turmoil and causing stress, fear, poverty and destitution across the planet.
The crisis will only be resolved by the ECB agreeing to act as lender of the last resort to governments in the short term, and a framework for Eurobonds in the longer term. Anything else is a fudge.
For each new initiative announced, the immediate bounce is a little shorter each time and the subsequent slump a little longer. Everyone’s just waiting for a trigger to kick off the inevitable calamity. A bank run is the obvious candidate, it’s just a matter of when.
The “markets” are seriously pi***ng me off
Again Europe will look to blame everyone else but themselfs for the on going problem in the EU
Because they are spouting B****cks. Amateur clowns doing confidence tricks. The bunnies have left the building.
I love the markets great place to get knocked off dvd’s
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