The odd timing of the Fed’s QEternity (given macro data, risk, financials conditions, inflation expectations, and equity valuations) provided some impetus for the markets which had anticipated Bernanke’s action. The supposed ‘safety net’ which we suspect has now been used up – by market front-running from a lower than implied Fed Put strike – does however look in question as the US fiscal cliff looms and global growth concerns grow. [...]
A changing trend? World Gold Council thinks so. Ruchika Shah / Mumbai May 17, 2012, 22:35 IST
Central banks across the world have started picking up gold as reserves, observed World Gold council in its first quarter gold demand review report released today.
Although down from buying in the first quarter of 2011, central banks continued to purchase gold as a reserve. In Q1 2012, central banks gold reserve demand was at 80.8 [...]
The price of gold has soared in global markets as wary investors seek to protect their savings against a possible “second wave” of the economic crisis. Some Russian banks have now reverted to the strategy of offering deposits in gold
Leading Russian commercial bank UralSib has revived a strategy which aims to profit from mounting fear of a second wave to the global financial crisis. As the euro loses its value [...]
1) Spain Sees Bond Spreads Rise
“Wary investors pushed up Spain’s borrowing costs on Wednesday as a debt downgrade from last week cast a shadow over the country’s efforts to avoid a Greek-style debt crisis. Good news on the jobs market seemed to give markets little cheer.
The spread Ã¢â‚¬â€ the difference in the interest rates between the Spanish bond and its German equivalent Ã¢â‚¬â€ reached 176 basis [...]