Tell us about your transfer We'll tell you who's offering the best rate today...

Financial Markets Positive As Investors Hope For Some Progress When It Comes To The EU Crisis.

It is rare that you could call a group of investors optimistic, especially in a situation like this, but it seems as though the financial markets in Europe are starting to gain some traction when it comes to an impending solution to the EU debt crisis.

The biggest gainers were banks with major presences in the Euro zone, like Deutsche Bank and BNP Paribas. Since these banks have been hit relatively hard recently, it was somewhat expected that any news of improvements to the financial systems health in Europe would give these two a boost.

There were reports that a deal was reached between France and Germany on how to leverage the EFSF and this may have been one of the main reasons for the rally, but the report was denied by officials from both sides, and Nicolas Sarkozy even flew to Berlin to continue working on negotiations because of a roadblock in the plan.

There was also some positive economic data out of the United States that could have been one of the reasons for a short rally during the end of the session. Watch to see how the markets end this week and then based on the news that comes out of the EU Summit this weekend, prepare for a turnaround or a continued rally.

 

EU Banks Under More Scrutiny, But Unrelated To The Current Financial Situation? 

On Wednesday, a few major banks in the EU were raided due to an investigation over alleged wrongdoings when it comes to interbank lending.

This story is still developing, so there aren’t that many details available to report on, but it appears as though major EU banks, including Deutsche Bank, are under investigation for rate fixing when it comes to Euribor.

When lending money between banks, the Euribor is the rate that everyone uses as a benchmark when setting the interest rate. This rate is set by a panel of officials, with members of BNP Paribas, Santander and UBS, along with many other representatives from major banks, being represented. When you look at this situation from an objective point of view, you can just imagine what kind of potential conspiracies could be present here. But, as of now, nothing has been proven and everything reported is just allegations.

This is just really bad timing for the EU banking system – they just can’t seem to catch a break. When almost everyone has zero confidence in the banking system and are starting to revolt against them, a news story like this will just add more fuel to the fire. Hopefully, this mess will all be cleared up in the very near future – the last thing the banking system needs is any more charges of corruption and wrongdoing.

Leave a Reply

Your email is never published nor shared. Required fields are marked *

*
Name*:
*
Email*:
Website:
Comment*: