Currency markets are moving in tight ranges while equities in Asia and Europe are mixed ahead of the German 4 billion euros 5-year bonds auction, while Spain and Italy are preparing to sell as much as 17 billion in debt tomorrow.
IMF chief Christine Lagarde will meet French President Nicolas Sarkozy in Paris to discuss the debt crisis, after Merkel-Lagarde meeting yesterday focused on Greece and efforts to resolve the crisis which is dragging Europe in recession.
Meanwhile Italian Prime Minister Mario Monti will meet the German Chancellor after Fitch said yesterday Italy, Belgium, Spain, Slovenia, Cyprus and Ireland remain on negative watch facing downgrades.
In Asia stocks were mixed as growth outlook is faltering across Asian countries on worried that Europe’s debt crisis will damage the global economy even more, where Kospi Index fell 0.41% while Nikkei 225 rose today 0.30%.
In Europe stocks are also mixed with DAX falling 0.06% while CAC 40 gained 0.27% ahead of the bond auction while economic data is absent from the euro-zone today, yet UK released its trade balance for Nov. were deficit widened.
The US will release its Beige Book and the EIA crude oil inventories later in the day, however markets await tomorrow’s key rate decisions from EU, UK and South Korea, all expected to hold rates unchanged to support growth.
The euro is almost unchanged at 1.2775, while the pound fell trading around 1.5465 following the downbeat trade balance report. The dollar index is almost unchanged at 80.87, while the yen weakened slightly trading at 76.90.
Crude oil is almost unchanged at $102.10 yet its movement seem to be somehow bearish as Europe’s crisis is weighing on sentiment, yet the continued tensions over Iran and Nigeria are limiting its losses.