Markets were volatile this week due to speculation on when the Fed starts to raise its interest rate and due to concerns over the Greek debt crisis. It seems as debt talks between Greece and its creditors will never end. Athens says that there is a progress in debt talks, EU officials denied it.
European Central Bank (ECB) Vice President Vitor Constancio pointed out on Thursday that a default of the Greek government and the solvency of Greek banks are not connected automatically. He noted that Greece will not leave the Eurozone if it does not repay its loans.
International Monetary Fund Director Christine Lagarde said in an interview to a German newspaper that a Greek exit from the Eurozone is possible.
It seems that investors are only focussed on when the Fed starts to raise its interest rate. Even if the Fed starts to hike its interest rate, it could mean nothing. I remember the year 2011. The European Central Bank (ECB) raised its interest rate twice, and lowered it only a few months later. U.S. exporters face difficulties due to the strong U.S. dollar. Just think what could happen if the Fed starts to tighten its monetary policy and other major central banks keep their lower interest rates for a longer period? They could face more problems. Their problems will weigh on the U.S. economy.
U.S. oil producers suffer from lower oil prices. Oil producers cut their spending on investment. Oil sector contributed a lot to the U.S. economic growth. Oil prices on low levels could also weigh on the U.S. economy despite a possible increase in consumer spending.
© 2000-2021. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at firstname.lastname@example.org.