Eurozone

Eurozone Conflict Will Bring a Major Buying Opportunity

Eurozone conflict

As the European Central Bank (ECB) top brass battle it out on quantitative easing, the stakes couldn't be higher.

Europe's at the precipice of deflation, despite European Central Bank President Mario Draghi attempting to do "whatever it takes" to avoid that fate.

But dissent at the highest levels could quickly change the winds of investment in Europe.

The problems are getting deeper as three of the European Central Bank's board members are throwing a wrench into his plans.

This seemingly trivial ECB stalemate could quickly trigger recession, or worse. Europe's monetary union is feeling the pressure, and that's adding further stress to its political union because, after all, it's always about the money.

Here's the inside story on how this could play out, and a way we can profit amid the confusion...

Desperation in the Eurozone Is a Profit Play for Us

Eurozone conflict

On September 4, the European Central Bank lowered the interest rate on its main refinancing operations by 10 basis points to 0.05%. In addition, the interest rate on its marginal lending facility was reduced by 10 basis points to 0.30% and the interest rate on its deposit facility was reduced by 10 basis points as well to -0.20%.

These rate cuts came as a bit of a surprise to the markets since only three months ago the central bank cut interest rates and was waiting for these cuts to stimulate economic growth.

Unfortunately, growth has slowed rather than jumped since then...

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The Biggest Takeaway from the European Central Bank Rate Cut? Short the Euro

short the euro

The news of rate cuts from the European Central Bank (ECB) is giving traders more reason to short the euro.

This looks like a further step toward large-scale quantitative easing in the Eurozone, and the euro is likely to see devaluation at the hands of inflationary cues from the ECB.

Here’s how you should play this currency…

Stock Market Today Will Move on GDP Numbers and Eurozone QE Talk

Stock Market Today

Stock market today, August 28, 2014: This morning, the U.S. Commerce Department revised second-quarter GDP upward to 4.2% growth, while jobless claims slipped to 298,000 for last week.
Last week, European Central Bank President Mario Draghi affirmed his commitments to Eurozone QE. Despite the optimism, many analysts remain divided on whether the ECB will act as soon as next week or wait until some point in the fall.

Here’s what you should know to make your Wednesday profitable…

YHOO, JPM, and GS Earnings Top Today's Wall Street News

Wall Street News

Wall Street news today, July 15, 2014: U.S. markets rallied on Monday as concerns over European debt subsided and investors took a more optimistic stance on second-quarter profit season. The financial sector led the charge ahead of their earnings this week. Today's futures were mixed as the markets prepare for Federal Reserve Chair Janet Yellen's semiannual testimony before Congress.

Investors will also keep a close eye today on earnings reports from Yahoo! Inc. (Nasdaq: YHOO) and Goldman Sachs Group Inc. (NYSE: GS), among others.

Here’s what you should know to make your Tuesday profitable:

Stock Market News: DJIA Hits Another Record, BAC, JPM, and GS Lead Financial Sector

stock market today

Stock Market News, July 14, 2014: U.S. markets rallied on Monday as concerns over European debt subsided and investors took a more optimistic stance on second-quarter profit season. The financial sector led the charge ahead of their earnings this week. Bank of America Corp. (NYSE: BAC), JPMorgan Chase & Co. (NYSE: JPM), and Goldman Sachs Group Inc. (NYSE: GS) were all up more than 1% on the day.

Here are the top stock market news stories of the day:

Here's Why Gold Stocks Are on the Rise – Plus Three Picks That Will Benefit

gold price

Gold stocks are poised for an upswing.

Just recently, the European Central Bank (ECB) announced a new policy to promote lending and, ultimately, inflation in the Eurozone. The move sent investors flocking to precious metals like gold and silver. And a recent election in April saw the seating of a new government in India. On account of the platforms of these new leaders, the Indian press has indicated to expect a considerable decrease in import duties.

With the upward pressure on gold prices, here are three gold stocks that can benefit from a potential price spike...

These U.S. Natural Gas Stocks Are Critical to the EU's New "Master Plan"

natural gas stocks

The ongoing civil war in eastern Ukraine, along with the corresponding crisis between Kiev and Moscow, means that Russian gas supplies to the EU could be cut off again come September.

In 2009, the last time Russia said nyet to European natural gas deliveries, the continent barely survived one of the coldest winters in years. This time around, Europe's savior could be U.S. liquefied natural gas (LNG) exports.

And that's good news indeed for these natural gas stocks...

Eurozone Debt Crisis Exposes What EU Leaders Fear Most

Flag of EU hanging on the gold flagpole

European Union leaders have seemingly changed their tune lately on how best to deal with the long-running Eurozone debt crisis.

Increasingly, EU politicians have been sounding the theme that economic growth - not Eurozone austerity - is the answer, and that deadlines set for reductions in public spending needed to be loosened.

It started about a month ago, with none other than European Commission President Jose Manuel Barroso.

"While I think this policy [of austerity] is fundamentally right, I think it has reached its limits," Barroso said. "A policy to be successful not only has to be properly designed, it has to have the minimum of political and social support."

Shortly afterward, French Prime Minister Pierre Moscovici chimed in, "We're witnessing the end of the dogma of austerity."

Meanwhile, the European Commission seemed to confirm the policy shift when it recently extended the deadlines for most of the troubled EU nations to fix their budget deficits.

News headlines throughout Europe trumpeted the "end of austerity."

But what the EU leaders have really done is buy themselves more time by stretching out the Eurozone austerity policies - which are mostly still in place - over a longer period of time.

To continue reading, please click here...

Eurozone Risks Don't Rule Out These Solid Income Opportunities

Europe has a bigger combined economy than the US and we've been economic partners for decades. If things don't turnaround in Europe, the US revival will certainly falter.
Our chief investment strategist, Keith Fitz-Gerald, just got back from "across the pond" and answered some questions about the risks and opportunities unfolding in Europe right now.
He also brought back some great inflation-beating, solid income stocks...

Eurozone Debt Crisis: Now It's a Hopeless Game of Whac-a-Mole

wackamolehome

The Eurozone debt crisis that was supposed to have blown over long ago instead has become more like an endless game of Whac-a-Mole, with both new and old problems popping up faster than European leaders can bop them.

As Europe's finance ministers gathered in Dublin today (Friday), they faced at least half a dozen major issues threatening the fiscal health of the Eurozone.

Although Europe's leaders, in concert with the International Monetary Fund (IMF), have succeeded in keeping a lid on each successive crisis over the past three years, that streak can't survive in the face of the new and old fiscal woes that have been peppering the Eurozone.

U.S. investors can't let those past successes deceive them into thinking the Eurozone is no longer a worry.

When the Eurozone debt crisis finally implodes - and sooner or later, it has to - it will hammer stock markets around the globe.

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The Eurozone Hangs On By a Whisker

Four days after the Italian elections, only one thing is really clear: A majority of Italian voters have rejected austerity.
The problem is, their victory came up short by the slimmest of margins.
0.36%.
That's the difference between a firm new government that could move Italy out of the Eurozone and the constitutional logjam Italian voters woke up to the next day.
Here’s why that's likely bad news for us all...

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