European debt fears
sink Asian markets
Global markets have awoken to new fear of spreading debt contagion in Europe. After a dumpy session in New York, Asian markets were gripped with fear that the sovereign crisis shall hit more European countries. After a couple of days relief, old aged bankers turned Premiers and politicians in Greece and Italy, proved to have no magic to offer except for continued austerity and clinging to a Euro which more and more observers see as unfit to get Europe out of its deep crisis.
Markets seem therefore slowly to realize that there is no quick fixes to fundamental flaws in the global economic system. Fear is therefore most likely going to dominate markets , except for short moments of optimism when some good figures are reported. We are in for a continued period of volatility both in currencies and stock exchanges.
Most focus is still on Europe where Germany and Angela Merkel along with the European Commission are pushing for closer integration as the best medicine to save the Euro and get out of the crisis. Premier Cameron in England has refused this path. Along with other Euro skeptics he is stressing that the Euro is a major cause for the present imbalances
In Italy Monti is striving to compose a government in an environment of renewed high bond interests. Euro is falling against the USD trading at 1.3593. Oil and gold prices are down while YEN is gaining ground. USD/JPY is at 76,99.
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