By FX Empire.com
Only one day before the European leaders will hold their second summit in 4 days trying to boost the region’s rescue fund, recapitalize banks, provide solutions for Greece that would prevent its default and avoid contagion to pain and Italy, investors are worried and cautious.
Until the details of the plan that should tackle EU’s debt crisis will be revealed, markets are moving with caution and in tight ranges before deciding on their next investment. Thereby stock markets are somehow mixed today, where the MSCI Asia Pacific Index fell by 0.2% at 15:03 inTokyo.
Yet in Europe the FTSE 100 rose as of this writing by 0.29%, DAX rose 0.37% and CAC 40 fell 0.24%. Investors will continue to follow the developments from Europe ignoring the economic data, where confidence improved in Germany and the current account deficit shrank inUKin Q2.
Even the corporate earnings reports are leaving little to effect on the markets. Later in the day theUSwill release its consumer confidence report for October, expected to show some improvement, however all eyes are onEuropenow awaiting for a resolution that would ease the debt crisis.
The euro is almost unchanged as of this writing trading around 1.3920. The British pound is trading around today’s opening at 1.5996, the dollar index is trading at the same level at which it started the day at 76.07, and the AUD is unchanged at 1.0471.
Oil and gold were slightly higher today led by the gains seen in the stock markets, where crude is trading around the $92.36 per barrel level on believed demand may increase if Europe will solve its crisis, while gold is trading around $1659.50 per ounce level.
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