A 10-day losing streak for the euro against the U.S. dollar is rekindling an old debate: Will the single currency reach parity with the dollar?
Read the Full Article: Source – Wall Street JournalRead More
Time For Truth: (Wall Street Journal) – Euro, Dollar Flirt With Parity
RARELY do people compare the British pound to the Nigerian naira, Azerbaijani manat or Malawian kwacha. But these are special times. Following the Brexit vote, investors dumped sterling. Some are worried about the possibility of a “hard” Brexit. Others are simply baffled by the government’s xenophobic and divisive rhetoric.
Italy’s banking crisis could spread to the rest of Europe, and rules limiting state aid to lenders should be reconsidered to prevent greater upheaval, Societe Generale SA Chairman Lorenzo Bini Smaghi said.
“The whole banking market is under pressure,” the former European Central Bank executive board member said in an interview with Bloomberg Television on Wednesday. “We adopted rules on public money; these rules must be assessed in a market that has a potential crisis to decide whether some suspension needs to be applied.”
Words don’t always come easy for the world’s central bankers, as Mario Draghi was reminded last week.
After first wowing markets at his March 10 news conference with a bigger-than-expected easing package, the European Central Bank president then muddled the message with a seemingly offhand remark that rates may have bottomed out.
Want to see just how much pressure the stock market is under? Got a buck? There are now 359 stocks trading for under $1 a share – the highest in more than 20 years.
The number of stocks currently trading on a major U.S. exchange for less $1 a share has jumped 38% this year and is up 420% from five years ago, according to a USA TODAY analysis of data from S&P Global Market Intelligence. Seeing such a rapid jump in the number of penny stocks shows just how pummeled the market has become. This analysis is limited to stocks currently trading on a major U.S. exchange – thus omits stocks that have been delisted or bought over the years.