This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

World Markets Like Greece, China News

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( BBH FX Strategy) -- The combination of a 50-basis-point cut in China's required reserve ratios and anticipation that the European finance ministers will sign off on the second aid package for Greece has lifted equity markets and most non-dollar currencies.

The MSCI Asia-Pacific Index rose 0.8%. Hong Kong' Hang Seng Index was the lone exception in Asia, slipping 0.3%.

Higher-than-expected inflation (6.1% vs. the consensus of 5.8%) may have played a role, but losses were widespread, led by oil and gas (-2.2% consumer services (-1.9%) and technology (-1.85).

> > Bull or Bear? Vote in Our Poll

European bourses are higher with the Dow Jones 600 up 0.8% near midday in London. Basic materials, industrials and financials are leading the advance.

U.S. and Canadian markets are closed, but the key event today is the European finance ministers' meeting.

There are still a number of issues that need to be worked out, including the mechanisms for surveillance of the implementation.

Talk continues about the establishment of an escrow-like account. In addition, the interest rate on the European Union/International Monetary Fund aid may be further cut. It had begun near 5% and had been cut last year to 4%. Another cut, especially if retroactively applied, could further reduce projected debt-to-GDP ratios.

Oil prices are rising on news that Iran will halt crude exports to France and the U.K. Combined, the two countries absorb about 3% of Iranian's oil sales. European crude and product inventories are estimated at 120 days of consumption.

The euro has been range-bound for several weeks. Last week it tested the bottom end of the range at $1.2980-$1.3000, and it largely held.

By the rule of alternation, it is now poised to test the upper end of the range, seen in the $1.3300-1.3320 area.

The pound has also recovered smartly off last week's low near $1.5645. The $1.5930 area marks the last high, but the more important cap is seen around $1.60.

The yen is consolidating last week's sharp losses, following the Bank of Japan's unexpected 10 trillion yen in new Japanese government bond purchases announced on Feb. 14.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $119.10 1.10%
FB $106.25 -0.65%
GOOG $748.28 -1.02%
TSLA $218.25 0.23%
YHOO $32.96 -1.20%


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs