France on Tuesday ushered in a precarious rating Fitch timely style “guarantee.” The rating agency said the same day, in France this year is not expected to cut the AAA ratings. The comments are very encouraged by the market, day trading in Europe, major indexes rose across the board, a number of stock index rose more than 2%. The euro has also come to rebound.
But the future of the debt crisis is still rough. Overseas media reported on Tuesday, the Greek government will announce next week a draft outline large-scale deficit reduction, and then the country will face from the International Monetary Fund (IMF) and the EU torture, the two organizations decided to Greece could further assistance funds. ⊙ ○ edit reporter Wang Zhou Jie Zhu Xianjia France temporarily relegation Fitch sovereign ratings director Ed Parker said on Tuesday that some of the existing French-based economic and financial trends for this year is not expected to cut France’s AAA credit rating, but did not release the other two rating agencies downgrade warning to France. In addition, Fitch said, Italy or Spain, may be cut one or two state-level. Late last year, Fitch will be Belgium, Spain, Slovenia, Italy, Ireland blue and Cyprus sovereign credit rating placed on negative watch list, France’s rating outlook is negative. David Riley, director of the company’s rating, said, when Fitch completed six eurozone countries assessment, is likely to cut Italy’s rating, these six countries had been placed on negative Fitch credit watch list. United States Bank on Tuesday released a report that within the next two to three quarters, euro area countries may encounter more degradation, including Austria, Belgium, France, Greece, Italy, Portugal and Spain, but there will be countries out of the euro. Greece entered a critical stage of debt relief Tuesday, the Greek government issued a total of 16.25 billion euros in short-term debt for six months, the average bid rate of return of 4.9%, lower than the previous auction. According to the 2010 agreement reached in May, short-term bonds is the only Greek in addition to loans financing instruments available. Last issue was December 30 last year, when Greece raising a total of 20 billion euros. In addition, the Greek government and investors to reduce total debt negotiations are still ongoing, aims to convince investors to agree to this at least half of the debt relief negotiations, is the first large-scale euro area debt restructuring transactions. According held on 26 October last year, the EU assistance programs reached the summit, Greece plans to reduce its total debt ratio of 50%. Fitch said the debt relief program if implemented, would constitute “an event of default”, but the International Swaps and Derivatives Association, said the move will not trigger the credit default swaps (CDS) of the payment. Germany and France after the meeting on Monday warned that if Greece and the creditor banks can not reach an agreement on the debt swap, it is difficult to obtain follow-up relief funds. German Chancellor Angela Merkel said, “very likely before the end of January to consider the adoption of a new EU treaty to strengthen the euro area budgetary discipline.” Overseas media reported Tuesday that Greek Prime Minister Papademos plan next week announced a € 100 billion for deficit reduction (about $ 129 billion) draft outline, then Greece will negotiate with the EU and IMF officials the terms of the second round of financing. The consultation must be completed before March 20 because by then there will be 14.5 billion euros Greece maturity. interest-rate strategist at Nomura International 莱夫泰里斯法尔 Marquise said Greece will receive about 890 billion euros of new capital, it is also hoped that the European countries can make this commitment. Euro remains under downward pressure Tuesday, Greece and France, a successful auction of Treasury temporary protection rating of good news that the European stock markets rally back. Tuesday 19:45, the major European stock indexes rose across the board, French and German stock market rose more than 2%, the UK stock market rose more than 1%. Euro also rebounded slightly against the U.S. dollar reported $ 1.2781, or 0.13%. However, due to the huge debt, the confidence of investors in Greece assets declined rapidly. The National Development line maturing in August 2013, 4% coupon rate bonds currently transaction price is only about 21% of face value. Fears, Greece in order to obtain financing and support measures introduced by the country’s economic growth will be inhibited. Affected, Greece 2-year bond yields hit record earlier this week, 176%. Greece and other countries of the impact of the final analysis, the credibility of the entire euro area, continued weakness in the euro is the best evidence. Most analysts have said is not optimistic about the future of the euro. From fundamental and technical point of view, the euro is expected to continue weakening. In addition, overseas media that traders borrow euro investment behavior is increasing global assets, this change marks the carry trade on the foreign exchange market started to recover. Analysis pointed out that, on the one hand, the United States launched the third round of quantitative easing monetary policy (QE3) expectations are constantly cooling; the other hand, the market forecast the ECB would cut interest rates further is a high probability event. These factors have contributed to the euro as investors around the world carry trade funding currency. reported that analysts believe that these transactions are mainly based on the premise of the euro will continue to fall. Traders is common practice to borrow euros, and then sell the use of other currencies, the euro Jiancang; when the loan repayment, traders will benefit from the depreciation of the euro. Goldman Sachs has released a research report pointed out that the United States and Europe gap between the general economic recovery in the euro exchange rates remain under pressure. U.S. economic data continues to improve at the same time, the ECB continued to expand the balance sheet. Goldman Sachs believes that this pressure is likely to remain one to two months, and the euro fell to $ 1.20.Related posts
0 comments:
Post a Comment