With US markets closed for the Martin Luther King holiday, focus moved to European stocks and all the action was in the banking sector which continues to hemorrhage. With RBS announcement yesterday, the market awaits details of the UK government’s proposal to insure banks’ toxic assets, but with increasing fears of nationalisation, risk sentiment has not been spared. The sharp drop in European bank shares yesterday signaled that the banking crisis is far from over and has the potential to disrupt the euro zone, whose economies get significantly less support from their governments when compared to the US and UK.
S&P downgraded Spain to AA+ raising fears of further downgrades in European sovereign ratings and the European Commission published updated forecasts for 2009 which included forecasts for a 1.9% contraction in the economy in 2009 and a feeble 0.4% growth in 2010 recognizing that the recovery in unlikely to be V shaped. JC Trichet spoke during European time saying that the outlook for the EZ economy is "substantially worse" than the ECB predicted a month ago. Oil finished down following the cease fire in Gaza and the signing of 10 year gas supply deal between Russia and Ukraine.
Full Article at: http://www.ac-markets.com/forex-news/daily-forex-news.aspx
S&P downgraded Spain to AA+ raising fears of further downgrades in European sovereign ratings and the European Commission published updated forecasts for 2009 which included forecasts for a 1.9% contraction in the economy in 2009 and a feeble 0.4% growth in 2010 recognizing that the recovery in unlikely to be V shaped. JC Trichet spoke during European time saying that the outlook for the EZ economy is "substantially worse" than the ECB predicted a month ago. Oil finished down following the cease fire in Gaza and the signing of 10 year gas supply deal between Russia and Ukraine.
Full Article at: http://www.ac-markets.com/forex-news/daily-forex-news.aspx
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