Greece’s credit troubles continue to weigh on investors after S&P yesterday cut the nation’s credit rating for the fourth time since April last year, and said that further restructuring is possible.
The euro dropped this morning as Greece is scheduled to sell 1.25 billion euros ($1.79 billion) of bills today. The restructuring fears are causing panic among the market participants, who sought safe heaven.
Asian stocks managed to end with gains this morning, amid lower than usual volumes since markets in Hong Kong and South Korea are closed for holidays. Those gains came after China reported record exports at $155.7 billion in April.
Stocks in Europe advanced on stronger profits from Deutsche Post AG. US futures are fluctuating as Microsoft is awaited today to finish talks of buying Skype Technologies SA, the most popular international calling service, with $8.5 billion.
The dollar gained today against majors, especially the pound and the yen, as markets participants lost their apatite for risk. The euro trimmed part of the losses as Greece denied a report showing the nation is discussing a new aid package.
The USD found additional support from falling oil prices while today’s economic data will be light. Crude fell to the lowest at $100.11 per barrel on profit taking transactions and as market expect a rise in oil stockpiles this week, while also CME Group increase the margin requirements for trading.
Gold is steady around the $1515.00 level, yet with an upside bias as the debt crisis may spur demand on safe heaven. Cautious trading will be part of today’s scenarios since broad markets will remain vulnerable to the sovereign debt crisis.
Originally posted here
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