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News and Review of European Economic Zone

 

Here it is the cause of European exchanges wanderings

Tuesday, August 7, 2012

 

European bourses volatile moves in the green and red zone today (7/8). At 08:17 pm London time, the Stoxx Europe 600 Index recorded an increase of 0.1%, after yesterday closed at its highest level since last April.

 

The wild swings in the European market before the release of the data rate of the German factory orders are expected to show a decline of 0.8% in June compared to the previous month.

 

In addition, some analysts also predicted that Italy's economy will again shrink to four consecutive quarters of 0.8% in the second quarter ago.

 

Negative sentiment is overshadowing the positive sentiment in the form of government support of German Chancellor Angela Merkel's plans bond purchases troubled countries in Europe by the European Central Bank (ECB).

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News and Review of European Economic Zone

 

European markets flat; Standard Chartered dropped

Tuesday, August 7, 2012

 

European stock markets traded in a tight range in the early trading session Tuesday, but the banking sector is now the focus is on the bank's focus, with Standard Chartered PLC shares fell 14%, after regulators accused the New York bank the day before the hidden transactions with Iran, but the accusation was denied by the bank.

 

The Stoxx Europe 600 flat at 266.78 level, with energy stocks providing support - BG Group PLC and BP PLC each recorded an increase of about 1%.

 

France's CAC 40 Index rose 0.2% to a level of 3408.43, with financial stocks such as AXA SA at up 2.8% and BNP Paribas SA gained 1.5%. German DAX 30 index up 0.2% to as low as 6930.05 by RWE AG shares rose nearly 1%. FTSE 100 flat at 5810.86 level. While the Spanish IBEX 35 index rose 1.3% to a level of 7147.60, led by a 1% stake in SA and BBVA Banco Santander SA.

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News and Review of European Economic Zone (UK)

 

UK Manufacturing Production Down

Tuesday, August 7, 2012

 

Protracted economic recession the UK has reduced business activity in July. Manufacturing and production industries decreased respectively by 2.9% and 2.5% worse than the publication in June increased 1.2% and 1%. However, this is still better than analyst estimates that predict a decrease of 4% of manufacturing production and industrial production as much as 3.3%. Sterling looks trying to maintain the reinforcement after the data was released. GBP / USD is now trading 1.5624, not far from the level 1.5631 daily high

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News and Review of European Economic Zone (UK)

 

UK BoE cut its growth forecast

Wednesday, August 8th, 2012

 

Bank of England (BoE) cut its forecast for UK growth. Besides the inflation rate will also be below the forecast, as the worsening crisis in the eurozone and the UK fiscal tightening burdensome requests.

 

BoE predicts growth in gross domestic product (GDP) annual will be in the range of 2% in the next two years. Last May, the BoE predicts GDP growth in the period to reach 2.5%.

While the consumer price growth will only reach 1.6%, from the original target of 2%. "The outlook remains uncertain growth in the UK. Biggest challenge for recovery is an effective policy response to risk can not be implemented fast enough in the euro zone," the BoE said in a statement today (8/8).

 

Britain's own economy slumped 0.7% in the second quarter. This is the biggest drop in three years. BoE rate short-term economic growth will still be weak. Known, the UK is currently struggling to emerge from recession by the global crisis some time ago. While on the other hand, the kingdom also had to face a debt crisis that occurred in the euro zone.

 

UK exports have also declined in line with weaker global demand. This is exacerbated ponsterling exchange rate appreciation in recent years, particularly against the euro. It is considered to be exacerbating the condition of export.

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News and Review of European Economic Zone

 

Euro exits after the decline in the German Production Data

Wednesday, August 8, 2012

 

The euro fell after a report that German industrial production slumped and exports are quite weak rate adds to evidence that the European sovereign debt crisis had a negative impact on Europe's largest economy is.

 

German industrial output fell 0.9 percent in June compared to May, while exports fell 1.5% rate in the same month. German bad data should put pressure on the EURUSD pairing further, but overall EURUSD still stuck in sd 1.2450 1.2280 trading range.

 

Observed so far pairing EURUSD fell -0.25% to as low as 1.2366 after reaching 1.2401 intraday highs and lows of his day at 1.2346.

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News and Review of European Economic Zone (Greece)

 

Greek Credit Rating Outlook Negative Being Reduced

Wednesday, August 8, 2012

 

Credit rating agency Standard & Poor's cut its credit rating outlook to negative long-term Greek, and added that the Greek government will likely require additional financial assistance from international lenders amid the economic slowdown and tightening of the budget implementation.

 

Previous credit rating outlook is stable down to negative, while the Greek bond's credit rating remains unchanged at CCC.

 

Greek economy was still deteriorating and expected to require an additional grant of 7 billion Euros, or about 3.7 percent of GDP.

 

The decline indicates that the outlook is also Greece's credit rating has the potential to be cut again if the Greek government failed to get additional financial assistance from the IMF and other European countries.

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News and Review of European Economic Zone (Greece)

 

Greek Aid Decision Delayed Until October

Thursday, August 9, 2012

 

Wall Street Journal on Thursday reported that a discussion of further disbursement of bailout funds for Greece will be held in October, down from an initial agreement to mid-September.

 

The delay was due to disputes between the Greek party leaders continue to debate the package of additional austerity measures. The plan cuts the number of civil servants to be the main topic of debate.

 

Troika inspectors would return to visit Athens in early September. While EU finance ministers will review Greek bailout program at a summit scheduled for October 8. If results are positive, the EU will continue to disburse aid program to phase-2 of? 31 billion, which is part of bailout deal worth a total of? 173 billion.

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News and Review of European Economic Zone

 

European exchanges fall Monetary Loosening Up Amid Hopes

Thursday, August 9, 2012

 

European stocks rose on Thursday terkerek sustained positive earnings reports and hopes for the actions of central banks in China and Europe to further stimulate economic activity.

 

China's consumer price inflation data rose 1.8% YoY in July, slower than the previous month by 2.2%, bad data is unique it prompted speculation that Beijing market participants will have room to ease monetary policy so that the bad data would have a positive impact.

 

Separately, ECB monthly report confirmed expectations that the central bank inflation in the euro zone is still decreasing trend along with its economic growth rate, where this could potentially provide additional space that the central bank can reduce its interest rates again.

 

ECB's interest rate currently at 0.75% after a 0.25 basis point cut last month.

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News and Review of European Economic Zone (UK)

 

Trade deficit eclipsed Sterling Performance

Thursday, August 9, 2012

 

Sterling weakened in the London session, depressed by the unfavorable trade deficit that the UK economic outlook bleak affirm. The trade deficit increased to? 10.1 billion for the month of June; worse than predicted? 8.5 billion and the previous publication? 8.4 billion. GBP / USD is now trading 1.5643, trying to stay away from daily highs 1.5685

 

This is the worst trade deficit in 15 years. Export performance is down 8.4% also confirm the weak demand for British manufactured goods. It will also reduce the economic power still slumped in the recession. "Hopes that exports could help the economic recovery seems to be too much especially with the protracted debt crisis of the euro-zone and the global economic slowdown," said Howard Archer, economist at IHS Global Insight interviewed by Dow Jones.

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News and Review of European Economic Zone

 

To the weakening of the euro against the yen and dollar weekly

Friday, August 10, 2012

 

Movement of the euro this morning still showing weakness. At 8:26 pm Tokyo time, the euro traded at U.S. $ 1.2298 and 96.66 yen, not much change from yesterday's closing position (9/8). Throughout this week, a common currency that 17 countries have declined 0.7% against the green and 0.6% against the yen.

 

The weakening of the euro against the yen after economist at European Central Bank (ECB) cut its 2013 growth forecast for the region. While the strengthening U.S. dollar against the yen as the increase in the level of yield occurs before the data showed U.S. retail sales rose for the first time in four months.

 

"The market will assume weakening against the euro. Situation in the euro is deteriorating and requires aggressive measures of the ECB," said Gavin Stacey, chief strategist at Barclays Plc rate.

 

Just a note, a number of economists surveyed by the ECB lowered its growth forecast for 2013 to 0.6% from the previous 1%.

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News and Review of European Economic Zone

 

Economists Crop Outlook European Zone

Friday, August 10, 2012

 

The fate of the euro zone economy is currently the most vulnerable since June, according to a Reuters poll of economists showed Spanish collection is expected to apply for a bailout of the European Union in recent months. Economists surveyed this week slashed their 2013 economic outlook for Greece, Portugal and Spain, and says they all will fail to achieve the budget deficit target agreed with the European Commission.

 

Among the European economic zone which is currently struggling, Ireland only visible on the right track for moderate growth in the near future.

 

While the survey indicates a possible reduction in pressure that Greece will soon come out of the euro zone, also underscore why Spain is the new focal point of the region's debt crisis.

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News and Review of European Economic Zone

 

Even Tougher on Hit Euro ECB Projection

Friday, August 10, 2012

 

Tungal Euro currency appeared perched solidly in the range of $ 1.2290 on Friday's (10/08) after yesterday had dropped to $ 1.2265 a result of the negative response to the monthly bulletin of the European Central Bank (ECB) whose content is shrinking euro zone economic projections.

 

In the bulletin mentioned the downside risk to economic prospects of the euro zone, where the turmoil in financial markets and the potential impact on the real economy is a major concern the central bank.

 

However, the weakening Euro did not last long and recover given the market makers are still waiting and hope to put the policy actions of the ECB.

 

Market expectations of a reactivation of the bond purchase program the rise after an ECB governing council member Christian Noyer said the central bank is ready for immediate intervention into the bond market in order to reduce the cost of borrowing some of the troubled country. Noyer also added that the ECB does not want the Greeks out of the Euro bloc.

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News and Review of European Economic Zone (Greece)

 

Greek GDP Aids Euro

Monday, August 13, 2012

 

The euro rose in London after a session of the Greek GDP data give hope of improving the economic situation of the euro-zone members is problematic. Greek GDP contracted -6.2% in the second quarter of 2012 and this is the fifth year in Athens slumped in recession. However, the data is still better than analyst predictions of -7% and the publication of the first quarter of -6.5%. EUR / USD is now trading 1.2324, near 1.2329 daily high level

 

"The poor performance of the Greek economy is not so surprising, but the reduced rate of contraction can be intimated Greece has gone through the worst. I hope the conditions in the first half is not as bad as expected and we may be able to see improvement in the situation in the future," said Chris Williamson, chief economist at the firm Marktit research.

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News and Review of European Economic Zone

 

Euro Welcomes Developments Greece

Monday, August 13, 2012

 

Reduce the weakening euro in the New York session as the outbreak of the Greek hopes to control its fiscal deficit. Government budget deficit is reduced for the first time since early 2012, although Greece is still slumped in the recession. Defisist fell to € 13.2 billion, better than the previous publication of € 16 billion. EUR / USD is now trading 1.2300, 1.2241 daily away from the low level

 

Protracted economic recession does give a negative impact on government revenues are reduced to € 27.6 billion, still below the government target of € 30.4 billion. However, government spending fell to € 40.8 billion, is still lower than the target of € 45.2 billion.

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News and Review of European Economic Zone

 

Potentially Euro Up if U.S. signaled QE

Monday, August 13, 2012

 

Movement of various currencies was relatively quiet on Monday, as market participants are still being waited for, ahead of U.S. economic data this week.

 

Observed so far the U.S. dollar index rose 0.03% to a level of 82.65, while the pairing EURUSD traded edged up 0.02% at 1.2290 level.

 

U.S. retail sales data on Tuesday, and reports on the consumer price index Wednesday will help the investor to assess the strength of the U.S. economy and the potential QE, if any, of the Federal Reserve.

 

If the economic data is released quite weak, it is usually expected to be built on the prospect of QE from the U.S. central bank, where it will sustain and boost the price of the stock index performance EURUSD pairing. In addition to the weak data also potentially trigger a selloff in the U.S. Treasury market. Where does this impact on the rise in yields and ultimately encourage the strengthening of the U.S. Dollar vs Japanese Yen.

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News and Review of European Economic Zone

 

Euro Still In Range

Tuesday, August 14, 2012

 

After Monday (13/08) EUR / USD last in the range of 1.2375, the currency weakened back to 1.2337, about 50 points above Friday's closing level (10/08).

 

"Technically, currencies remain well above last week. Currency remained below the high level at 1.2440, "said Valeria Bednarik, chief analyst at FXstreet.com.

 

Ms. Bednarik added, if the currency continues to be under the next target at 1.2320 then 1.2280, then 1.2250. "EUR / USD at 1.2335 with resistance level at 1.2350, 1.2380 and 1.2410. While the support level at 1.2320, 1.2280 and 1.2250.

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News and Review of European Economic Zone (Portugal)

 

The economy contracted in Portugal

Tuesday, August 14, 2012

 

Portugal worse off in the abyss of recession for the second quarter of 2012 as the continuing policy of austerity. Quarterly GDP contracted -1.2%, worse than the publication of the first quarter of -0.1%. This is further evidence of the negative effects of austerity policies demanded by the European Union. Portugal has cut wages and raise taxes as a prerequisite for € 78 billion bailout.

 

The unemployment rate has hit a record 15% of course emphasize the difficulty of finding employment in the euro-zone member states are. This data is alarming because it can make creditors wonder whether Lisbon could achieve its deficit targets. The Government will meet with the European Union and the IMF at the end of August to discuss the program of economic reforms and progress made by Portugal.

 

Meanwhile, the euro weakened on the New York session. EUR / USD is now trading 1.2333, 1.2385 daily high level away from

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News and review European Economic Zone (Germany)

 

German Economic Sentiment Worsens

Tuesday, August 14, 2012

 

Protracted debt crisis and the poor performance of the euro-zone economy made ​​investors skeptical of Europe's largest economy. German economic sentiment fell to a level of -25.5 for the month of August, worse than predictions of -19.4 and -19.6 the previous publications. Strengthening of the euro looks difficult to maintain after the data was released. EUR / USD is now trading 1.2368, trying to stay away from daily highs 1.2385

 

"This is a drop sentiment for four consecutive months and signaled Germany's economic activity will subside within the next six months," said European ZEW economic research center that released the data. "The decline in activity in the export sector will be quite feel as slowing euro zone economic performance as well as the world economy."

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News and Review of European Economic Zone (UK)

 

Sterling faltered appreciation prospects Stimulus

Wednesday, August 15, 2012

 

Appreciation of the British currency - Sterling shrink back in on Wednesday (15/08) and does not continue due to expectations of further easing by the Bank Sntral England (BOE) back to haunt the market.

 

In fact yesterday Sterling (GBP) had soared to its highest level in two-weeks against the dollar after UK economic data inflation unexpectedly rose in July. Consumer price inflation drove 2.6% last month from the previous 2.4% in June, surpassing the 2.3% forecast of economists.

 

Nevertheless, investors are now likely to be wary of GBP as of this week is filled with a series of UK economic data to be released. Data rates of unemployment, retail sales and BOE monetary policy meeting minutes of this month is scheduled to be released simultaneously this week.

 

Until the afternoon session, GBP appears recorded in the range of $ 1.5668 and is only able to move up to $ 1.5678 but still well below session highs at $ 1.5726 yesterday. As a result, any strengthening of Sterling will probably not last long, despite the surge in inflation in July, so inevitably the BOE still have to roll back a policy of quantitative (QE).

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News and Review of European Economic Zone (UK)

 

Sterling strengthened Unemployment Claims

Wednesday, August 15, 2012

 

Sterling rose after the decrease in jobless claims gave hope that the British economy can come out of recession. Jobless claims decreased by 5900 to July, better than the prediction of an earlier publication of 6300 and 1000. GBP / USD is now trading 1.5700, 1.5660 daily away from the low level

 

Preparations for the London Olympic event seems to have created more jobs for the economy. The unemployment rate even fell to 8% for the month of July, lower than the publication in June of 8.1%. This would signal the improving labor sector and can provide hope that the economy can come out of recession.

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News and Review of European Economic Zone

 

Euro Still In Support German-French's GDP

Wednesday, August 15, 2012

 

Until the afternoon trading session (Wednesday, 15/08), the single currency Euro seems perched firmly on top of the range of $ 1.23 due to fewer market sentiment was lifted by the data of economic growth in Germany and France are able to avoid the depreciation in the second quarter.

 

But GDP figures from the two countries failed to dampen the end of the pessimism about the economic slowdown in the euro after euro zone GDP data shows contraction. The rate of the euro zone economy to contract by -0.2% during the second quarter and corresponding estimates of the market and analysts. The figure indicates that most members of the Euro bloc is currently experiencing a slowdown even worse.

 

While a separate data also showed analyst and investor sentiment in Germany (ZEW economic sentiment index) also declined sharply than expected in August. However, France and Germany the data are slightly better than expected and some other data that does not disappoint us still tend to support the movement of the Euro.

 

Euro were still strong in the range of $ 1.2325 after only able to rally to $ 1.2332 compared to the previous session that can reach a high of $ 1.2385 level.

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News and Review of European Economic Zone

 

Euro-Zone Inflation Stable at 2.4%

Thursday, August 16, 2012

 

Recovery in world oil prices and high global food prices make the euro-zone inflation remained stable despite worsening economic performance. Inflation grew 2.4% according to predictions and unchanged from the publication in June. However, the inflation rate is still above the ECB target of 2%. Bundesbank is certainly reiterate the desire to focus more on running the ECB's mandate of price stability and not intervene in European bond markets.

 

At the August meeting, ECB President Mario Draghi point out the central bank will do anything to maintain the integrity of the euro-zone. Euro-zone economic contraction and higher borrowing costs are still problematic bond majority of officers will certainly encourage the ECB to loosen monetary policy further. The ECB also has uttered will reactivate the bond purchase program, although opposed by the German central bank.

 

In the meantime, please register weakening euro thin in New York session. EUR / USD is now trading 1.2273, not far from the level 1.2256 daily low

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News and Review of European Economic Zone (Switzerland)

 

Reduced Swiss Economic Pessimism

Thursday, August 16, 2012

 

Swiss economic expectations index rose to its highest level in three months; is certainly a sign that the economy is stabilizing as exporters trying to cope with weak demand from the euro-zone. Economic expectations index reached -33.3 in July; better than the previous publication of -42.5. It also means that Swiss society pessimism on the economy began to decline.

 

Analysts see the success of the SNB to maintain a lower limit EURCHF exchange rate as one of the positive factors. Swiss central bank has implemented a lower limit is nearly a year and still express a desire to maintain it. Analysts are also quite optimistic about the future performance of the Swiss economy. "Economic growth in Switzerland could reach 1.5% for 2012," wrote Credit Suisse report.

 

Meanwhile, the franc weakened thin record in the London session; but seemed to be less attenuation. USD / CHF has traded 0.9787, trying to stay away from daily highs 0.9799

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News and Review of European Economic Zone

 

Merkel Back Affirm Implementation Budget Discipline

Thursday, August 16, 2012

 

German Chancellor Angela Merkel reiterated that the budget saving solutions is crucial to overcome the financial turmoil in Europe, and Canada provide examples of the successful economic growth after the budget discipline.

 

Merkel has so far faced pressure from the European leader and global partner to loosen its bailout policy and allow the issuance of debt together in order to stop the spread of the crisis.

 

These comments also indicate a loan from the ECB will be given depending on the conditions of budget austerity measures and structural reforms undertaken in countries that will dibailout.

 

However, Greece is currently undergoing the second phase of the rescue program after a crisis since 2009, will likely be finished by the end of this year, because the government Antonis Samaras less likely to implement budget austerity program even though creditors grant an extension of time as desired by his coalition.

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News and Review of European Economic Zone

 

Finnish Permanent Commitment With the Euro-Zone

Friday, August 17, 2012

 

EU Affairs Minister, Alexander Stubb, Finland remains committed to affirm-euro zone and are still willing to contribute to solve the debt crisis. Stubb's comments seem to neutralize the foreign minister a statement that hinted Finland is preparing to anticipate the dissolution of the euro-zone.

 

Stubb Finland wanted to make sure that the long-term solution to the problem of debt-euro zone should not be faced again in the future. "I think we should not play with fire by suggesting the dissolution of the euro-zone or exit of one member suggested. That will not help in finding a solution," Stubb said in an interview by CNBC.

 

In an interview with The Daily Telegraph, Foreign Minister Erkki Tuomioja said Finland is ready to face anything. "There are no rules for how a country out of the euro-zone; but this is only a matter of time. This problem was costing millions of people and destroying the future of Europe," said Tuomioja told The Daily Telegraph.

 

In the meantime, please register strengthening euro thin in the London session. EUR / USD is now trading 1.2374, 1.2338 daily away from the low level

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