Global Growth is Under Threat and Market Expectation

27 Feb

We are in a very volatile market, with fear indicators reaching levels where we expect to see market corrections. The question is with the expected news in the near future will this calm or panic the markets? We have the 20th March 2012 Greek Debt repayment date, UK Budget on 21st March 2012, and the forthcoming elections in both Greece, France and United States; and there are many more.

European stocks are expected to open lower on Monday, tracking losses in Asia where shares fell over concerns of high oil prices which could stall the global growth. Oil prices remain high due to fears over conflictual relations between Iran and Western powers plus the mounting tensions generally in the Middle East.

The ongoing Eurozone’s problems remained in the spotlight as G20 Finance Ministers met in Mexico on Sunday over growing issues from the Eurozone Debt Crisis. This is in relation to a deal to boost financing for the International Monetary Fund in April, assuming Europe had strengthened its bailout fund by then.

The European Central Bank is expected to provide a further three-year funding operation on Wednesday. This is to lend around 500 million euros to European banks in, what has been  called “a closely watched operation”.

It is believed that the first european refinancing programme helped to ease the funding markets, and the second such programme is planned to achieve similar goals.

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