psaTrading
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Equity markets start the year falling.
The new year is already showing many challenges and uncertainties. In the European case, the biggest challenge and risk is represented by the political situation in Greece. This issue is aggregate two fronts. The first is internal and marked by the election campaign. The second is broader and is represented by the response of several European countries to the events of the election campaign in Greece. The weekend brought some developments on both fronts. In the election campaign, the party leader of anti-European left Syriza, Alexis Tsipras said that if he won the next election (25 January) would promote a series of nationalizations and would repudiate a part of Greek debt (about 320 000 M. €). If these promises become facts it is almost certain Greece will leave the Eurozone. Against this speech, the German newspaper Der Spiegel, citing a source close to Chancellor Angela Merkel said that Europe will be prepared for a Greek exit from the euro zone (a possibility which is called by Grexit in the financial world), covertly saying it would be this country the main victim in such a scenario. Given these developments, the European currency fell to below 1.20 against the dollar, the minimum in recent years. With the appreciation of the dollar, oil depreciated.
Parallel to the political situation in Greece, investors will follow the news and rumors for the ECB, which will meet on 22nd this month. Until then, Mario Draghi will firstly analyze the economic data to be published while trying to gain more consensus around the implementation of a sovereign debt purchase program.
US markets retreat before the weakness of European markets and some disappointing data. The sharp drop in oil prices led to the closure of several oil wells in Texas, in North Dakota, Wyoming and Colorado, which not only affected this sector as local economies.
In the coming days, the US stock market will be marked by the contrast of two different factors. Firstly, the uncertainty hovering in Europe. On the other hand, the fact that US funds have gathered 36 000 M.USD subscriptions in the last two weeks of 2014.
The new year is already showing many challenges and uncertainties. In the European case, the biggest challenge and risk is represented by the political situation in Greece. This issue is aggregate two fronts. The first is internal and marked by the election campaign. The second is broader and is represented by the response of several European countries to the events of the election campaign in Greece. The weekend brought some developments on both fronts. In the election campaign, the party leader of anti-European left Syriza, Alexis Tsipras said that if he won the next election (25 January) would promote a series of nationalizations and would repudiate a part of Greek debt (about 320 000 M. €). If these promises become facts it is almost certain Greece will leave the Eurozone. Against this speech, the German newspaper Der Spiegel, citing a source close to Chancellor Angela Merkel said that Europe will be prepared for a Greek exit from the euro zone (a possibility which is called by Grexit in the financial world), covertly saying it would be this country the main victim in such a scenario. Given these developments, the European currency fell to below 1.20 against the dollar, the minimum in recent years. With the appreciation of the dollar, oil depreciated.
Parallel to the political situation in Greece, investors will follow the news and rumors for the ECB, which will meet on 22nd this month. Until then, Mario Draghi will firstly analyze the economic data to be published while trying to gain more consensus around the implementation of a sovereign debt purchase program.
US markets retreat before the weakness of European markets and some disappointing data. The sharp drop in oil prices led to the closure of several oil wells in Texas, in North Dakota, Wyoming and Colorado, which not only affected this sector as local economies.
In the coming days, the US stock market will be marked by the contrast of two different factors. Firstly, the uncertainty hovering in Europe. On the other hand, the fact that US funds have gathered 36 000 M.USD subscriptions in the last two weeks of 2014.
