Although Barack Obama’s election victory removes some of the uncertainty burdening the markets, there are more important issues to solve in the coming months, most notably the so-called “fiscal cliff”.
Anti-austerity sentiment is gaining momentum in Europe, says Peter O’Flanagan, head of FX trading, Clear Currency.
Barry O’Neill, analyst at trading partnership Clear Currency, says that last week’s summit has left the region no closer to a lasting solution to the eurozone debt crisis.
Moody’s decision to downgrade Crédit Agricole and Société Générale was “expected” following news that the rating agency had turned its attention to the French banks, according to Clive Lennox, head of foreign exchange trading at Clear Currency.
Swiss central bank moves to counter recent appreciation of the Swiss franc.
Investors’ fears were eased as Eurozone policymakers yesterday agreed on a second bailout for Greece worth €109bn, in a deal struck just ahead of that country’s deadline to meet its debt obligations. Initial reaction from markets has been positive, but long term problems exist.
Europe-wide banking regulator the European Banking Authority will publish results of stress tests for 91 banks across the region later today, once markets have closed.