Nov. 29, 2010
trade” says that investor sentiment was never likely to be swayed by the conclusion of negotiations to rescue Ireland’s shell-shocked banking system when Portugal and, perhaps, Spain could be next in line for EU/IMF emergency funding.
trade” analyst explained that Portugal could be rescued fairly easily given that it represents only 2% of the GDP of the bloc of nations that use the single currency. “Spain, on the other hand, is a far larger concern since it contributes 15% of the bloc’s GDP and would require more than €500 billion to put right”, she said.
Equity markets around the world sold off as investors retreated to the perceived safety offered by the temporarily recovering US dollar. Gold held up well as investors wary of the dollar’s ability to preserve purchasing power sought an alternative safe-haven.
trade” clients were told to expect pressure on Portugal to request assistance from the EU/IMF to escalate over the course of the next month. “Any deal would probably be delayed until after Christmas and New Year but the euro is likely to fall to as low as $1.28 in the meantime”, predicted an “Interactive-