As this week comes to an end today, markets are expected to remain very volatile and to fluctuate heavily, especially ahead of the closely watched jobs report from the world's largest economy, where cautious trading could be seen across the board through the session today, as investors will tend to close their positions ahead of the coming week, where all eyes will be looking forward to the Make it-or-Break-it European summit.
Europe remains center stage, while all eyes are still focused on the debt crisis and the procedures taken by European lawmakers to quell jitters and restore confidence, where we can see several and important decisions are being made by the euro-area region in attempts to tackle the two-year old debt crisis; however, implementation is highly needed as investors lost faith in European decisions and now are looking forward to the application of those measures in order to have confidence in the European economy again.
Investors are still wondering what is next for Europe, how European nations will boost the European Financial Stability Facility, which measures will be taken into consideration to solve the debt crisis. Several questions are running through our minds, especially after the heavy load of decisions that were made and not implemented yet, as investors are still looking with wondering eyes at the European rescue fund, the European Central Bank, the European Union and International Monetary Fund.
Finance ministers have finally agreed to boost the European Financial Stability Facility (EFSF), but without mentioning by how much as the market conditions remain highly uncertain and keep on worsening as the wheel of time is still turning.
The euro-zone Finance chiefs agreed on a detailed plan in regards to the European rescue fund, which is expected now to purchase up to 30% of the new issued European bonds, while they explained that the International Monetary Fund will play a larger role in the rescue plan, but on the other hand, European policy makers after the meeting on Wednesday decided to boost the International Monetary Fund role in the bailouts for European vulnerable economies instead of any direct intervention from the European Central Bank. http://marketmasterysoftware.us/
The European Central Bank President, Mario Draghi told the European Parliament yesterday that downside risks to the European economic outlook has intensified, while the Bank will attempt to ensure that inflation will not exceed or undershot the 2% target, which raised speculation in the market that the European Central Bank is to lower the key rates next week in order to support growth further, especially after Draghi said that the bank have the tools and could use them in the right time to fight back the debt crisis.
Global Central Banks yesterday agreed to lower the cost of borrowing U.S. dollars after European banks were unable to obtain dollar funding, where the move made by the Feds and ECB in cooperation with other major Central Banks eased the jitters and spread optimism in the market yesterday; however, eyes are still tracking the European Central Bank next move, where we expect the bank to provide more loans with longer maturity to support the current shorter term loans provided by the Bank. http://marketmasteryblog.us/
Finally, with the lack of critical fundamentals from Europe today, all the focus will shift to the world's largest economy that will provide markets with the November jobs report, with expectations the public sector could have added 120 thousand jobs to the labor market compared with the previous addition of 80 thousands, which if confirmed could support the optimism to spread in the market, especially when such upbeat data could confirm that the "mild recession" in Europe is not spreading into the largest economies in the globe. http://marketmasterysite.us/
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