European Crisis
Stocks and shares in the east are faring well again, but in the west – particularly Europe – the situation isn’t as good. The upcoming Euro leader meeting could be partly to blame. While European leaders and executives were not anticipating a total recovery to their large debt issues, they remain somewhat helpful that the meeting will provide some assistance towards a strengthening of the EuroZone Rescue Fund. While the Euro crisis will be discussed, it doesn’t seem that any decisions will be made quickly although France and Germany both seek to begin negotiations sooner rather than later.
Japan’s Market
The Nikkei stock average in Japan opened down 0.04 percent. Europe is definitely having an impact. According to SMBC Nikko Securities Equity Division GM Hioichi Nishi, “until the European plan takes shape and investors are reassured, it's difficult for markets to make major moves, and trading should stick to recent ranges.” While the Euro is not faring too badly against the dollar, stealthily moving up 0.2 percent against it, (and the Australian dollar went up 0.3 percent too), it still looks like it won’t be moving all that much given that there is caution about taking any major steps before the meeting. The entire Asian region is definitely standing back somewhat vis-à-vis activity within its markets with European shares declining last week and American stocks increasing. This was good news as it indicated that fears of American’s economy once again falling into a recession, were relieved.