Phil Flynn: Kicking The Cannes Down The Road

Global markets are trying to recover as the ECB provides some cover for the Greeks with a surprise rate cut against a backdrop of some better than expected US economic data. Europe was trying to continue to kick the Greek can down the road and tried to end the charade with a package to head off a Greek default.

Greek PM Papandreou created a world of turmoil proposing a referendum of the EU handouts as the markets gyrated headline after headline. The Greek people want a bailout but they don't want to make the spending cuts that will be necessary. Austerity is no fun, especially when you think you hold Europe and the world hostage and that you can still have your cake and eat it too.

Rumors that Papandreou would resign or that the referendum was off the table created wild swings and crazy things. Yet ECB cut rates helped restore sanity in an insane world.

The market also hoped that the G20 would do the Cannes can and help provide confidence to the global market place. The AP reports, "The United States, China, Germany and other major rich and emerging economies have pledged to fight cross border tax evasion under an agreement approved Friday, which supporters say could raise tens of billions of dollars at a time when indebted European nations are scrambling for more revenue.

The deal approved during the Group of 20 summit adds to a marathon campaign by the United States and the European Union to pressure Switzerland and other tax havens to scrap practices they say help wealthy individuals and companies hide income. Supporters say the agreement could help governments collect tens of billions of dollars in taxes on previously hidden income......Read the entire article.


Get 4 FREE Trading Videos from INO TV!

Phil Flynn: Greased Lightening!

Greece throws the world in turmoil as France and Germany says that the Greece referdum is a vote on whether Greece wants to stay in the Euro Zone. In the mean time, Big Bad Ben Bernanke says that QE 3d is a real possibility as he lowers the growth and jobs forecast for the US economy. The Energy Information agency added a few surprises with a big build in crude oil and a disturbing drop in distillates that could send chills across your spine if you heat your home with heating oil. Yet the markets seemr to hope that the nova convening G20 can bring order back to the market place in a world where we don't know where the next crisis might come from.

Now austerity is one issue but having a sugar daddy to pay your bills is another. Greek PM Papandreou threw caution to the wind for what purpose no one is quite sure. If it was to save his political backside well perhaps he is one. European leaders on the other hand reframed the debate by telling the people of Greece that the referendum vote about the Greek bailout package may be a vote on whether they want to be in or out of the EU.

German Chancellor Angela Merkel and French President Nicolas Sarkozy has pulled the plug on the euro zone rescue aid driving Greek bonds to 100% and perhaps putting the country on the verge on bankruptcy. Sarkozy says that there will be, "no French taxpayer money, no German taxpayer money" until the question is answered. In the meantime global markets tank but are finding hope that somehow the G20 will restore sanity or a split in Papandreou inner circle might find hope that Greece will accept its partners handout.....Read Phil's entire article.

Crude Oil Declines Below $90 on China Manufacturing Slowdown, European Debt

Crude oil fell below $90 a barrel for the first time in a week in New York on speculation commodity demand will falter as Chinese manufacturing slows and European leaders struggle to contain the region’s debt crisis.

Futures slid as much as 3.8 percent, after posting their biggest gain last month since May 2009, amid signs of higher production from OPEC members as Libya bolstered exports. China’s Purchasing Managers’ Index fell for the first time in three months in October, a report showed. Greek Prime Minister George Papandreou said he will submit the European Union’s new financing deal for a national referendum.

“The list of things weighing on the market is long,” said Olivier Jakob, managing director at Petromatrix GmbH in Zug, Switzerland, who correctly predicted that this year’s oil rally would stall. “There’s the Chinese PMI, the Greek referendum taking EU leaders by surprise, the euro-dollar collapsing.”

Oil for December delivery declined as much as $3.56 to $89.63 a barrel in electronic trading on the New York Mercantile Exchange and was at $90.56 as of 12:48 p.m. London time. Futures fell 0.1 percent yesterday and climbed 18 percent in October......Read the entire article.


Check Out Our Stock Research & Trading Alerts