Yehia Noor
01-29-2012, 02:16 PM
we expect a very volatile and violent week; however, the sentiment is expected to remain positive if European leaders were able to finalize the plan set to heal the debt crisis; however, key data awaited during the rest of the week are expected to determine whether the market is to continue the bullishness or it will reverse and cut the gains recorded in January.
In addition to the creation of the European permanent rescue fund European leaders are to finalize the fiscal integration conditions are rules this summit, where eyes will be focused on the new agreement between the European Union nations and how effective the plan will be as leaders will seek for stricter budget rules in order to force European nations to reduce the huge amount of debt they handle in a step to fight the escalating debt crisis, which triggered the global slowdown.
Leaders will also negotiate the current economic situation in Greece; especially after the Greek Government approached to an agreement with the private sector bondholders, where markets are still tracking any developments with creditors who proposed finally to voluntary incur 50% losses on their Greek debt holdings for 3.75% coupon rate on the bonds to be issued in exchange for the existing Greek debt, noting that markets are waiting the deal to be completed as Greece has to repay 14.5 billion euros of maturing bonds in March.
The unemployment rate is also expected to linger at 10.3% in the euro area region, while in Germany the rate is expected to remain unchanged at 6.8% in the month of December; however, the main focus at the end of the week will be on the U.S. jobs report, with expectations the public sector could have added 148 thousands new jobs in January, while the unemployment rate is expected to remain steady at 8.5%.
The performance of the manufacturing and services sectors are expected unchanged as the euro-area nations release the PMI final manufacturing and services indexes; however, eyes will be on the United Kingdom's manufacturing and services sectors, especially after the economy contracted more than expected in the fourth quarter and ahead of the February BoE decision that might see the expansion of the APF again.
The euro zone CPI flash estimate is expected to show that inflation eased further in the month of January to 2.6% from 2.8%, leaving more space for the European Central Bank to move again and provide more easing to save the euro-area nations; however, we don’t expect the bank to cut rates this meeting as the bank still attempts to balance between maintaining prices stability and boosting growth.
note:
This week eyes will be focused mainly on the CPI annual flash estimate, purchasing managers' final reading for manufacturing and services and finally the concentration will be on the unemployment figures from the euro-area nations in addition to the jobs report from the world's largest economy.
have a new lucky week trade
In addition to the creation of the European permanent rescue fund European leaders are to finalize the fiscal integration conditions are rules this summit, where eyes will be focused on the new agreement between the European Union nations and how effective the plan will be as leaders will seek for stricter budget rules in order to force European nations to reduce the huge amount of debt they handle in a step to fight the escalating debt crisis, which triggered the global slowdown.
Leaders will also negotiate the current economic situation in Greece; especially after the Greek Government approached to an agreement with the private sector bondholders, where markets are still tracking any developments with creditors who proposed finally to voluntary incur 50% losses on their Greek debt holdings for 3.75% coupon rate on the bonds to be issued in exchange for the existing Greek debt, noting that markets are waiting the deal to be completed as Greece has to repay 14.5 billion euros of maturing bonds in March.
The unemployment rate is also expected to linger at 10.3% in the euro area region, while in Germany the rate is expected to remain unchanged at 6.8% in the month of December; however, the main focus at the end of the week will be on the U.S. jobs report, with expectations the public sector could have added 148 thousands new jobs in January, while the unemployment rate is expected to remain steady at 8.5%.
The performance of the manufacturing and services sectors are expected unchanged as the euro-area nations release the PMI final manufacturing and services indexes; however, eyes will be on the United Kingdom's manufacturing and services sectors, especially after the economy contracted more than expected in the fourth quarter and ahead of the February BoE decision that might see the expansion of the APF again.
The euro zone CPI flash estimate is expected to show that inflation eased further in the month of January to 2.6% from 2.8%, leaving more space for the European Central Bank to move again and provide more easing to save the euro-area nations; however, we don’t expect the bank to cut rates this meeting as the bank still attempts to balance between maintaining prices stability and boosting growth.
note:
This week eyes will be focused mainly on the CPI annual flash estimate, purchasing managers' final reading for manufacturing and services and finally the concentration will be on the unemployment figures from the euro-area nations in addition to the jobs report from the world's largest economy.
have a new lucky week trade