Reuters - European stocks were set to open higher on Monday after data about China helped allay fears of a hard-landing in the world's second-largest economy, while the euro steadied on hopes that Europe's leaders were making some progress toward tackling the region's debt crisis.
HONG KONG (Reuters) - European stocks were set to open higher on Monday after data about China helped allay fears of a hard-landing in the world's second-largest economy, while the euro steadied on hopes that Europe's leaders were making some progress toward tackling the region's debt crisis.
The German elections came and went, with Merkel initially said to have an absolute majority, but in the end being forced to design a Grand Coalition. Still, the punditry has been tripping over each other desperate to make that result (or any other result) positive for Europe , which despite now paving the way for policy continuity, together with the latest round of less than impressive Eurozone PMIs (following the strongest China HSBC PMI in 6 months) failed to inspire appetite for risk in Europe this morning where stocks have traded mixed.
George Soros, one of the most outspoken critics of Germany’s proposed austerity policies to solve the European debt crisis, said the euro is here to stay and will gain as other nations seek to devalue their currencies.
Soros, who made US$1-billion shorting the British pound in 1992, said that while the causes of the euro crisis haven’t been solved, the acute phase of the turmoil is over.
Germany will always do “the minimum” to preserve the currency, Soros said Thursday at the World Economic Forum in Davos, Switzerland. He forecast a “tense” two years for the euro region.
Earlier this morning, we gave a rough overview of the global economy. It goes like this: Europe is rebounding, China is doing a tad better than expected, and the US continues along the same path it's been on, which is essentially one of decent, but disappointing performance. So here's a perfect, practical counterpoint to that: Morgan Stanley's European Equity Strategy team has put together 4 big investment ideas to play this world economy. They are:
The euro-area economy will shrink in back-to-back years for the first time, driving unemployment higher as governments, consumers and companies curb spending, the European Commission said.
Gross domestic product in the 17-nation region will fall 0.3% this year, compared with a November prediction of 0.1% growth, the Brussels-based commission forecast Friday. Unemployment will climb to 12.2%, up from the previous estimate of 11.8% and 11.4% last year.
There are numerous signs the entire Eurozone is in recession, including Germany. Nonetheless economic dunces talk as if recession can be avoided. For making just that claim, I blasted the IMF on Monday in Dimwit Comment of the Day: Christine Lagarde, IMF Director says "Europe May Avoid a Recession This Year".
Let's ponder a sampling of data released today that proves without a doubt Europe is already in recession.
TOKYO (Reuters) - Asian shares rose and the euro steadied on Tuesday, keeping gains from the previous day as investors grew more confident about European leaders coming to a broad agreement to contain the region's debt crisis.