Breaking Wall Street Market News & Reports

Markets around the Globe have been up nearly 15% on average to economic optimism and a dodge of double-dip scenario.

Traders are now have a perfect exuse to sell into the news and a prime oppurtunity in doing so. News of European fiscal woes are at again. Few months ago there were reports that the US is exploring ways to provide financial support through the IMF and ECB to help support the Debt Contagion from spreading to larger nations like Spain. Markets continued the uptrend rally since that announcement. Well bells are ringing again, this time investors are flaming fear back in the markets. The key word that will be used during this minor pullback will be “RESCUE FUND” as Double dip fear was used during the April – August correction. But this time around we’ll experience a modest pull-back before we continue bull trend.

European shares ended flat on Monday, with banks among the top fallers, as investors traded cautiously ahead of the outcome of a euro zone finance ministers meeting aimed at discussing changes to the bloc’s rescue fund. 

Euro zone finance ministers are set to discuss changes to the effective lending capacity of the European Financial Stability Facility (EFSF), though no final decision was expected, with Germany seeing no need for bolstering the fund’s size.

It would be good for the euro zone as a whole if they (the ministers) can calm some of the nerves, but by what actions? We will have to live with discussions about the debt problems for months and quarters to come.

Tags: corrections, euro debt, rescue fund

This entry was posted on Monday, January 17th, 2011 at 6:05 pm and is filed under Contributors, Debt, Economics. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.