Some days, the news just gives and gives, meaning I have lots to write about and not enough space to write it. As well, I’ve had a flurry of questions and comments come my way, so let me start today with a comment, a feather in my cap, so to speak.
I simply want to commend you on your writing skills. It is becoming increasingly rare to find someone who thoughtfully and skillfully crafts his sentences to provide clarity and flow.
I gotta admit it – this makes me feel good. Thank you for the compliment, kind sir. Tomorrow, I will have some more interesting comments and questions, but for now, onto the news that affects the market and our money. First out of the gate, it appears the good people in Greece and Ireland are starting to speak a bit more loudly about being in or out of the EU, and the market likes what it is hearing from these folks.
- Greek polls showing growing support for pro-bailout parties eased speculation about a disorderly exit by Athens from the single currency.
- Early polls suggest the vote will go in favour of endorsing the fiscal pact, which will please Ireland’s ruling Fine Gael-Labour coalition.
I know that Britain is not part of the new EU accord, but its voice is still important in European matters. Thus, even as Ireland and Greece are voting to continue with the agreement that imposes austerity, Britain adds its voice to the growing voices heard throughout Europe that are now saying it is time to add some economic stimulation to the austerity package. I believe the market likes this as well.
Seven out of 10 Britons want the government to soften its spending cuts and do more to stimulate economic growth.
There is also good news on the China front and the continuing downward trend of oil prices. Tomorrow, I will look closer at the oil issue, as a reader has given me an opening to discuss Dr. Kent Moor, an elite academian (oil is his specialty) who also publishes a trading newsletter.
- The official Shanghai Securities News reported on Tuesday that China’s biggest banks appeared to have accelerated lending toward the end of this month as Beijing starts to fast-track its approval of infrastructure investments in an effort to stem sagging growth.
- OPEC output in May has hit its highest since 2008 as Saudi Arabia maintained high production rates despite a drop in prices and Iranian shipments did not fall substantially further ahead of an EU embargo.
Ever the optimist, there is also news on the next big news blitz coming our way. I recently wrote the market will not like the coming political news, however, it seems that news might not be bad after all. Could US politicians actually avoid a bitter confrontation and find resolution to the upcoming fiscal issues? If so, consider me all wet about the market behavior this fall.
Two respected former lawmakers whose names have become synonymous with bipartisan compromise in a highly divisive Congress are meeting with dozens of lawmakers to forestall a potential year-end fiscal crisis dubbed “taxmageddon.”
Trade in the day – Invest in your life …
