Top China ADR Portal

China ADR stock research

China stocks shrug off EU woes, for now

E-mail Print PDF

banace_3 June 15, 2012 (Chinavestor) Chinese indexes surged on Friday in Asia ahead of the critical Greek vote over the weekend. It looks as if central banks could make up for a freeze should a Greek disorderly exit from the Euro zone take place.

But I'm less optimistic should Greece decide to leave the common currency. Borrowing costs have sharply risen for Italy and Spain according to the following chart. These are countries that are too big to save. A common euro bond, guaranteed by Germany and France along the rest of the members, should help lower borrowing costs for larger members. But it looks to me that Germany, and Angela Merkel in particular, doesn't have the political capital to pull it off. That's a shame.

EU_bond_div

Source: Thaler's Corner



If you like us, spread the word to the fellow investors on your favorite Social Bookmarking websites
Reddit! Del.icio.us! Mixx! Free and Open Source Software News Google! Live! Facebook! StumbleUpon! TwitThis Joomla Free PHP
 

Online Courses

We train investors, people looking to become a trader, helping professionals wanting to be more effective in their work. See available courses.

advance_10
Register