NEW YORK (Reuters) - Elections in Greece and France over the weekend have ushered in a new period of uncertainty for financial markets that could stand in the way of the easy-money rally that boosted stocks at the start of the year.
NEW YORK: The global market volatility that upended investors over the last six weeks may last deep into autumn now that the Federal Reserve has decided to keep interest rates unchanged, several equity and fixed income portfolio managers said on Thursday. The Fed has not raised interest rates since 2006 and investors are concerned that a further delay will keep markets on edge, as analysts try to interpret how data points ranging from Chinese retail sales to commodity prices will influence the central bank's next move.
LONDON: European shares extended gains on Wednesday after a report that Greece was ready to accept most conditions from its international creditors to clinch a debt deal. The Financial Times, citing a letter Alexis Tsipras sent to the heads of the European Commission, the IMF and the European Central Bank, reported the Greek prime minister will accept all his bailout creditors' conditions that were on the table this weekend, with only a handful of minor changes.
LONDON: The euro rose on Friday after Greece's parliament gave approval to a new bailout agreement, with relative calm returning to currency markets after a week that saw China devalue the yuan, sending ripples through global financial markets. The euro hit $1.1185, on track for its best weekly gains against the dollar since mid-May, having already got a lift this week as investors unwound euro-funded carry trades in the yuan and other emerging market currencies, which were hit hard by the Chinese devaluation on Tuesday.
HONG KONG/SHANGHAI: China shares fell again on Thursday after a report that banks were trying to get to grips with their financial exposure to the stock market slump in June, added to a pall of uncertainty for investors. Concerns about the level of borrowing to fund market positions have been magnified by the grey market - a loosely regulated network of state-owned commercial banks, trust companies, fund managers, and grassroots finance firms.
We suggest ECB President Mario Draghi has his work cut out for him today. As the entirely political catalyst for Greece's crescendo-like bailout capitulation, he will - we hope - be questioned long and hard on his actions over the last 2 weeks (and going forward) with regard the increasingly 3rd world nation. As Bloomberg's Richard Breslow notes, Draghi needs to help calm a still tense situation. The only way he can do this is with as much tranquility as he can muster, make sure everyone knows he is still prepared to do whatever it takes.
US stocks were largely unchanged on Monday in muted trading, with gains in healthcare shares offsetting a fall in consumer stocks, as investors took a breather from a recent rally that helped indexes recover from a selloff at the start of the year. Crude prices were hovering near their lowest levels in a month as hopes that top oil producers would reach an agreement to help tackle a stubborn global glut faded.
London (AFP) - Fresh Chinese stimulus sparked a global stocks rally Wednesday in markets that had been coloured red by fears of a slowdown in the world's second-largest economy, with Tokyo surging almost 8 percent.