Europe - Stocks (General News)

[LenaHuat]

CAC 40 has been so aggressively sold off these few days that I think it is entering treacherous water.

[winston]

Yes, FTSE, CA and DAX all down 4% to 5% ...

Some Investment Banks got hit badly.

[kennynah]

i dont trade european stocks.... but imo, the banks will stand to gain from this greek crisis...if they participate in the bailout aid.... DB (deustche bank) is one example...

my reasoning is simple...they will be doubly assured by their respective governments that should the borrower default, the governments will pay thru the coffers...and meanwhile, they will gain the high loan yield....

in other words...it is time to monitor an entry trade...may not be these few days ahead...but should not be long from now...

[winston]

The European indices are going up a few percent.

If it's due to short-covering then there's some not so smart short-sellers out there.

[winston]

TOL:-

Shouldn't a low Euro be good for the European exporters as their sales would go up ?

In comparison, if you have a 11% drop in the Yen, the Nikkei would be flying through the roof.

Do I know why I'm buying or selling ?

[kennynah]

Do I know why I'm buying or selling ?

i sure hope so...hahaha...

[winston]

TOL:-

It may be time to put the European ETFs on my watch-list.

The 15% drop in the Euro will definitely help the exporters.

Need to diversify my portfolio. Right now, my portfolio is in two Asian countries of 5m people each. It's too dangerous a situation. A Nuclear fallout from Daya Bay can wipe out one and an Earthquake in Indonesia can create a Tsunami to wipeout the other

Just one country of 5m in Europe can bring down the financial system. So just imagine what the collapse of another two 5m countries in Asia can do to the world ?

[winston]

TOL:-

Some of the European exporters must be looking very attractive to the Americans.

Not only can these European exporters do more business with the 15% drop in the Euro, their share price must have also dropped 20% in local terms and about 35% in USD.

[winston]

The European markets are positive now.

So the Europeans also dont respect the -268 points on the Dow.

Maybe the Dow was following the 4% fall on Shanghai.

Hmm... who is following who now ?

[winston]

Ha Ha ... the parrots on CNBC were talking about how Hungary will bring down Europe today. And it's not ONE parrot. It's parrots after parrots ...

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European stocks gain ahead of Wall Street rise

European shares up in anticipation of a rebound on Wall Street after sharp losses Friday

European stock markets rose Monday as investors looked past a downgrade of Ireland's public debt and instead bet on a rebound on Wall Street later after sharp losses last week.

Disappointing data in the U.S., including a plunge in consumer confidence and weak corporate results, suggested the world's biggest economy may be in danger of falling back into recession. That caused massive losses on Wall Street on Friday, but hopes were for a mild rebound on Monday.

Britain's FTSE 100 was up 0.5 percent at 5,185.81 and Germany's DAX was up 0.5 percent at 6,068.53. France's CAC-40 was 0.5 percent higher at 3,517.47.

The Dow, which had slumped 2.5 percent on Friday, was expected to rise on the open — futures were up 0.4 percent at 10,100. Standard & Poor's futures were also 0.4 percent higher, at 1,067.70. Asian indexes mostly closed lower.

The increasingly troubled outlook for the U.S. has begun to overshadow fears from Europe's government debt woes, as markets seem to feel the debt crisis has eased ahead of the release of bank stress test results this week.

Second-quarter results from Citigroup Inc. and Bank of America Corp. disappointed investors because revenue fell even as the banks generated an increase in profits.

Traders also were shaken up as a volatile stock market, near-double-digit unemployment and a stalled housing market led to a drop in U.S. consumer confidence in July — to its lowest point in nearly a year. That resulted in a chill on spending, which is bad news for the rest of the world — U.S. consumer spending accounts for a fifth of the global economy.

"That really shows that people don't have faith in the future. People are afraid of losing their jobs and are putting off buying things," said Francis Lun, general manager of Fulbright Securities Ltd. in Hong Kong. "America is in danger of falling into recession. If the economy does not pick up, it will go the way of Europe."

The recovery from Friday's sharp losses came despite a one-notch downgrade by Moody's of Ireland's public debt. The ratings agency cited a weak growth outlook, high debt levels and large banking liabilities. In another reminder of Europe's debt crisis, officials from the International Monetary Fund and the European Union said they had suspended talks of another loan for Hungary.

Yet investors mostly looked past the reports, bidding the euro up to $1.2954 from $1.2947 in New York late Friday — a sign that fears about the debt crisis have largely calmed.

Markets will this week be looking forward to the publication on Friday of EU-wide stress tests of banks, a simulation to see how the region's 91 biggest lenders would fare if the economy worsened sharply.

"Although several European governments have suggested that the banks in their countries will pass the tests there is still a considerable event risk surrounding the announcement," said Mitul Kotecha, analyst at Credit Agricole.

He said much will depend on how rigorous the tests are perceived to be.


Source: AP News