Higher oil prices, naturally enough, have caused gasoline prices to spike. The fact that gasoline is traded in dollar terms means that has taken a greater toll on the eurozone economies, who must pay for it with their own weaker domestic currencies; the burden is greater in countries like Greece and Italy that now levy higher taxes. Higher crude and gasoline prices are another potential headwind to growth in oilconsuming nations.
current account balances in Middle Eastern nations with large oil reserves tend to mirror oil price movements. oil-producing countries are likely to be the beneficiaries of higher crude oil prices. .On the other hand.
as investors became less anxious about the prospect of an imminent crisis in the financial system. The ripple effects of this funding were seen throughout February. . European banks snagged another 530 billion euros of three-year funding from European Central Bank.Right at the end of February.
but don’t fix the long-term problem and may lead to addiction. has fallen dramatically since the LTRO loans made their debut . the funding has reduced the strains on Europe’s banking system.These emergency loans from the ECB are a bit like prescribing opiates to treat pain: they may resolve the symptoms. a key measure of stress in the interbank lending market. Still. the spread between the floating LIBOR rate and OIS (overnight indexed swap).
But there are worrying signs from Spain: two of the country’s biggest banks now lead this list of financial institutions in the U.S. enabling it to access further EU/IMF funding and global financial markets reacted positively to the ECB lending program.Is Europe’s crisis ebbing – or spreading? Greece managed to execute its debt swap deal. . and Europe whose debt commands the highest CDS prices – an indicator of how risky investors believe the institution to be.
being the only major equity market to fall in both its local currency as well as in dollar terms.While global stock markets have been on a tear this year. Spain has largely missed out on the party. . with Germany posting big gains in both local and dollar terms and Japan posting particularly strong gains in local currency terms.
When tracking that question. the greater the odds of a steeper rate of decline in Chinese economic growth. Π₪₪₪₪Π .The question to which every economist would like to know the answer is whether the Chinese economy is heading for a hard or soft landing. The sharper the rate of that decline. that appears to be signaling that its long period of outperformance (dating back to 2000) is coming to an end. one trend to watch is the performance of materials stocks. Currently.
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