Developments in the Eurozone debt crises this week

The latter half of this week has seen euphoria enter the markets on the back of easing fears regarding the Eurozone debt crises.  Monday evening the Japanese government released a statement which reassured investors that they are looking to invest in the European Financial Stability Facility (EFSF). This helped markets stabilize after sharp risk aversion trading seen on Monday morning. The previous week also saw China making several statements to this effect then Wednesday saw Portugal successfully sell their debt to the markets, a very positive event for the peripheral markets. Spain also managed to successfully sell its debt yesterday. These Factors have helped stabilise the markets this week with peripheral stock indices, such as the Spanish Ibex and the DJ EuroStoxx 50, surged higher after Slumping Monday –

However The fact that every time further support is provided to Europe more has to be done at some later stage reveals that the markets lack long-term confidence. At some Point China and Japan need to turn their rhetoric into action and come to the aid of the Europeans, which will likely be required to save Spain rather than Portugal as it seems as though the market has already entered an end game with regards to Portugal’s fate. With global support for the Eurozone  bulls need a period of stability so that the politicians and governing bodies can work out a system for extra market support. On the Flip side The bears will remain wary of these measures being put in place to aid Europe which could lead to a Eurozone crises entering the start of the end-game at some point during the first half of this year.

Massive Weekly Reversal & Close off Established Long Term Demand Zone .


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