Greece is back in focus

My last (last week) post on global markets was not to optimistic. Over the weekend, the following was also not favorable

·         Less than 75% of banks sign up to Greece buyback (expectations is 90%)

·         European liquidity increases next day cost

·         Germany rejects using ECB leverage to increase rescue fund size

·         Italy debt review by Moody’s downgrade

·         Spanish debt surges 2^nd Q record

·         Papandreou cancels US trip

As at point of writing Singapore time 440 am, the commodities currencies are trading much lower from Friday night’s closing. This is a sign of risk-off. I would suspect that

·         Asia Gold would trade much higher

·         Crude oil to fall

·         Vix to move much higher.

With reference to investors' mindset, it is normal that the Asian investor would take over the baton from US closing. However, I will be very surprised if Asian markets would trade much higher following US markets 5 day rise for the week, as a result of unfavorable events occured over in Europe and the US.

In addition, my technician had informed that the charts for commodity currencies, equities and energy does not look too favorable. US dollar, gold and VIX are inching much higher this morning! Risk off.

The FOMC is scheduled to be announced Wed night (Singapore Thursday morning). The markets are expecting Bernanke to unleash a certain stimulus to prop up the economy.

I’ll be very patient and wait for his statement and decide the course of events, then. Trade with caution!