ECB Meeting Getting Closer, Along with a Decision on Greece

Oct. 5, 2011 - PRLog -- Yesterday, it was reported that Finland will receive the collateral it demanded as a condition of providing aid to Greece. The Finnish government was able to secure the collateral, but it won’t protect the country’s taxpayers from having to pitch in for financing a second wave of the crisis. “The value of the deal is in the eye of the beholder,” said Ville Pernaa, director of the Parliamentarianism at the University of Turku. “But this isn’t really what Finland sought to begin with.” The issue is that the government’s refusal to develop a plan for Finland to assist Greece that was more advantageous to the Finnish electorate could inflame talks between skeptics within the country that hold the third biggest bloc in parliament.

The “True Finns” party, led by Timo Soini, which is directly encouraging Greece to default and to admit that the Euro is a failed experiment, is the second most popular party in the country after the National Coalition led by Prime Minister Jyrki Katainen (according to a recent poll by Finnish newspaper Helsingin Sanomat). This morning, European stock indexes finally rose for the first time in four days amid speculation that politicians are reviewing measures to protect banks from the sovereign debt crisis. Asian stocks and futures on US indexes however, fell.

Shares of the Belgian bank Dexia SA (DEXB) rose 3.2% after France and Belgium announced that the “bad bank” will get the chance to get rid of its troubled assets. Shares of the mining sector company Rio Tinto Group have gone up since bronze finally put a stop to its five-day drop. Shares in the European Aerospace Group increased by 1% after the company reported that 2011 will turn out to be a “very good” year.

The Stoxx Europe 600 Index added 0.9% to reach 219.48 by 9:00AM in London after falling 5% over the previous three days. The index’s drop leaves it as before close to its all-time low from March 2009.

The MSCI Asia Pacific Index slipped 0.3% today at the same time that futures on the Standard & Poor’s 500 Index slid 0.5%. The American broad market index rose 2.3% yesterday despite the losses it incurred throughout the day. DT Trading analysts says that this was thanks to a report from the New York newspaper Financial Times that quoted Olli Rehn, the EU Commissioner on Economic Affairs, as saying that Europe has “an increasingly shared view” that the region needs a coordinated approach to put a stop to the debt crisis.

Later today, the markets will be awaiting Automatic Data Processing’s assessment of the employment level in the US private sector. DT Trading economists expect the figure to be 70-80,000 jobs added in September.

DT Trading Limited Analytical Department

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