Even though bond yield curves for distressed or pressured sovereignties such as Italy, Greece and Spain have risen, the bond yield curves for the Euroarea as a whole have actually declined per the European Central Bank.This indicates European peripheries are a monetary drag on the Eurozone's economy and that the affect of fiscal contagion has not so far greatly affected confidence in European debt.
A comparison between the dollar index and the Euro currency also indicates the relative current strength of the Euro and the European economy overall. However, if confidence in the Eurozone's ability to deal with solvency problems does fall via a domino affect of asset prices i.e. contagion, a flight to the dollar would presumably lower the price of commodities in the short-run and consequently lower equity indexes i.e. stocks and funds invested in those commodities.
• Apple Inc. share price reaches all time high over $421.00 per share
• ECB: Euroarea comparative 12 month 30 yr bond yield curves merge
• Italian bond yields rise with S & P's downgrade per the WSJ
• IMF downgrades global economic growth to 4 percent
• Real estate data disappoints per MarketWatch
• DJIA experiences unsubstantiated morning rally
:.
0 comments:
Post a Comment