European markets and commodities rose today on signs of progress in talks to solve the fiscal cliff in US.
According to Reuters news US lawmakers indicated that compromises are possible in negotiations to avert the $600 billion in tax increases and spending cuts due to start in January. In this side of the Atlantic optimism in Europe rose on prospects of a deal tomorrow to release the next tranche of aid to Greece, Did you have any doubt?
As the news tape printed earlier European officials are expected to discuss a bridge loan so to postpone any longer-term plan until after a September 2013 German general election. European Central Bank policymaker Joerg Asmussen said at the weekend that the ministers were likely to agree the deal and leave resolution of a longer-term debt stabilization plan for Greece, at the heart of a disagreement with the IMF, until later.
…what a news!! they are again kicking the can down the road.
As a result the Euro rose 0.33% versus the greenback to 1.2772$, driving higher equity benchmarks in Europe: the Stoxx50 rose 1.70% to 2,468.56, the German Dax rose 7,073.14 in Southern Europe the Italian Ftsemib rose 1.58% to 15,091.15 while the Spanish Ibex was lagging rising just 0.93$ to 7,658.40.
A softening dollar supported dollar denominated commodities such as Gold, which rose 0.89% to 1,730.00, and Oil (WTI), which rose 1.55% to 88.27$ a barrel as Israel ground forces are poised to invade the Gaza strip for the first time in almost four years if cease-fire talks fail.
At this point we have to wait for confirmations from the US market, it looks like there is no room for shorts today.
For what it may concern our game plan we are the no-men land although in honesty I’m finding really difficult refraining myself from fading this rally…