Bobbys Corner-Open Market-May.18.2012

May 18, 2012 by · Leave a Comment 

Good Morning:

The equity markets started the overnight session down 3% throughout the region.
The continued ongoing Greek crisis along with the downgrade of Spanish banks all lead to the drop.

The Euro initially took a beating-EUR/USD traded as low as 1.2641, and then as the market’s soaked in the news-the pair rose to a high of 1.2728.  Quite a comeback by the single currency.

The Euro Zone had a really tough week:
-with no real news or changes in Greece-except talk about the election-which is not till June 17.
-new governments in France and Greece, after May’s election.
-Spanish bank downgrades.

Now all eyes will be on this weekend’s G-8 meeting at Camp David.

Asian equity markets were lower-Europe is mixed-while US Futures are higher.

Oil is lower-Gold is higher today.
Facebook IPO priced at $38/share-let’s see how the markets cooperate. 

HAVE A GREAT DAY- WEEKEND & GOOD LUCK

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Good Morning:

Oh- the Greek sage:

With uncertainty being the main theme-the euro lost steam-and the EUR/USD fell below 1.30.
With the March 20 deadline on a 15 billion euro bond payment due-there is now talk of a bridge loan to Greece-if the bailout package cannot be completed in time.  This would be some what chaotic for the markets-but the thought is that Greece is holding elections in April-and the Troika would like to insure that the austerity measures passed will continue with the new (which there probably will be) government and Prime Minister.
Market participants will be looking for next Monday’s meeting of EU finance ministers for any new signs of progress.

In other news-Moody’s has commented that they will review and may cut 17 global and 114 European financial companies as the debt crisis in the euro zone continues to spread.

Oil is still over $101/bbl-as the Iranian situation continues to heat up.

World equity markets and US Futures are lower today.

HAVE A GREAT DAY & GOOD LUCK

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