The Greece Effect

[illusion8]

Almost $4 trillion has been wiped from global equity markets in May amid mounting concern that Greece will have to leave the euro currency union after elections next month.

ADR Premium to BRICs Narrows on Europe Concerns: China Overnight - Bloomberg



Canada’s dollar dropped the most since November, falling for a third straight week as concern Europe’s debt crisis will worsen overshadowed government data showing inflation and factory sales rose more than forecast.

Canada Currency Tumbles as Europe Crisis Overshadows Data - Bloomberg



The Bloomberg-JPMorgan Asia Dollar Index fell 0.9 percent this week as global funds pulled about $1.9 billion from stocks in South Korea and Taiwan. The won and Malaysia’s ringgit saw their biggest losses since September, while India’s rupee sank to an all-time low. Greece’s credit rating was cut by Fitch Ratings May 17 on concern the country will leave the euro, while Moody’s Investors Service downgraded 16 Spanish banks and 26 Italian lenders this week.
The won fell 2.2 percent from its May 11 close to 1,172.73 per dollar in Seoul, according to data compiled by Bloomberg. The ringgit dropped 2 percent to 3.1350 in Kuala Lumpur. The rupee slid 1.5 percent to 54.4250 and Indonesia’s rupiah weakened 1.2 percent to 9,356.

Asian Currencies Fall Most Since November as Europe Risks Mount - Bloomberg

2012 and Europe is messed up. All stock indices are falling bigtime.

 

[Audio]

Almost $4 trillion has been wiped from global equity markets in May amid mounting concern that Greece will have to leave the euro currency union after elections next month.

A lot of data ive seen over the past few days indicated that Greeks will elect a government that will pursue austerity, comply with Brussels and stay in the euro zone as a result.

 

[illusion8]

A lot of data ive seen over the past few days indicated that Greeks will elect a government that will pursue austerity, comply with Brussels and stay in the euro zone as a result.

But that's not certain, hence the volatility, I see no other reason for the global meltdown other than the the Eurozone crisis, The US is bounding back, US Growth is estimated at 2.4% than the previous 1.7, Crude prices have dropped from 120ish to 96 per barrel. Eurozone is what is pushing down the currencies and the markets the world over.

 

[illusion8]

The index is one of the worst performers among Asian markets, with a 14.03 percent loss so far this year.

The rupee ended edge down at 129.60/80 against the dollar from Thursday's close of 129.10/20, on importer demand for dollars, dealers said. ($1 = 129.1000 Sri Lanka rupees)
http://www.reuters.com/article/2012/05/18/markets-srilanka-idUSL4E8GI75320120518

Nationwide protests in Spain over economic woes - Europe - World - The Independent

Britain blames economy woes on euro zone | Reuters

 

[Fanling Monk]

Have your money ready, time to buy (stocks) is when there's blood on the Street (Wall St).

 

[Audio]

World wont go bust if Greece leaves eurozone.

 

[illusion8]

LONDON (Reuters) - German government bond yields hit record lows on Friday, the U.S. dollar rose and shares fell as the escalating bank crisis in Spain, a ratings downgrade for Greece and sluggish U.S. data spurred investor demand for safe-haven assets.

Across the board, riskier assets from commodities such as gold and oil and currencies - like the euro and the Australian dollar - were all heading for big weekly losses.

The FTSEurofirst 300 <.FTEU3> was down 0.9 percent at 972.64, falling for a fifth straight day and taking its weekly loss so far to 4.9 percent.

Benchmark 10-year German bond yields hit a record low of 1.396 percent and two-year yields also fell to their lowest-ever level at 0.028 percent.

European markets are still in a very fatalistic mood because of Greece and possible contagion.

The safe-haven dollar rose against a basket of major currencies to hit a four-month high of 81.758 <.DXY>, while the euro marked a four-month low around $1.2655.

The latest selloff of riskier assets comes after Moody's cut the long-term and deposit ratings of 16 Spanish banks, Fitch downgraded Greece deeper into junk territory and the United States reported an unexpected contraction in regional factory activity.

MSCI's world equity index <.MIWD00000PUS> was down 0.75 percent to 299.38 and has given up all its gains for the year following heavy losses this week in U.S. equities and emerging markets, as worries rise over the impact of the euro zone crisis on global growth.

 

[Hyde]

Greece screwed me big time last year but this time I was very safe so kept on selling Euro despite the good news coming in last few months... The patience has paid off and Euro dropped to very low point at 1.26xx couple of days ago.

Traders are worried that if Greece is gone, it is very likely that Italy, Spain and Portugal will also leave Eurozone putting the European economy in severe danger and badly effecting the value of Euro currency in the coming months.

Lets see!

 

[illusion8]

 

[illusion8]

Greece screwed me big time last year but this time I was very safe so kept on selling Euro despite the good news coming in last few months... The patience has paid off and Euro dropped to very low point at 1.26xx couple of days ago.

Traders are worried that if Greece is gone, it is very likely that Italy, Spain and Portugal will also leave Eurozone putting the European economy in severe danger and badly effecting the value of Euro currency in the coming months.

Lets see!

Spain is equally messed up.

 

[kawaraj]

seems China can withhold the risk among emergings, India next, Brazil and Russia hit hard in the downfall of commodity prices.

 

[kalu_miah]

Introducing common currency Euro was a mistake for EU integration. It was too early and premature. No choice now but to dissolve this fiasco costly as it may be for EU and bring back the old national currencies.

 

[Zeeshan360]

India is doing pretty well compared to Brazil , Russia
Seeing the current economic situation , I thought we would be worst performing among BRICS

 

[illusion8]

seems China can withhold the risk among emergings, India next, Brazil and Russia hit hard in the downfall of commodity prices.

China, India, Mexico can comparatively maintain their positive growth, although they are slowing down as well, but can withstand the meltdown and see it through. South Africa is also safe due to higher gold prices. Mexican exports to Europe is just 6% and to China is just 3% so Mexico is comparatively safe. Brazil is losing a lot of momentum right now. US is looking positive slightly.

Russia has a slowdown.

 

[illusion8]

G8 Leaders Want 'Strong Eurozone' With Greece

G8 leaders have expressed hope that debt-stricken Greece stays in the eurozone and vowed to "take all necessary steps" to try to combat the deepening economic turmoil in Europe.
In a statement of support for Europe, the eight leaders of the world's major economies said the global economic recovery shows promising signs but "significant headwinds persist".
"Against this backdrop, we commit to take all necessary steps to strengthen and reinvigorate our economies and combat financial stresses, recognising that the right measures are not the same for each of us," they said in a communique.

G8 Leaders Want 'Strong Eurozone' With Greece - Yahoo! News UK