According to one of the IMF’s chief economists the IMF did not help the eurozone and the drop in the economic activity, which is well above expectations, will be seen. There is a concern about Spanish and Italian bonds. The countries were paying lower interest loans and if these member states do not ask a bailout they have to pay high costs.
It is still true; even it is not fully affirmed. Spain is torn between bankruptcy and the situation which would entail less financial costs but a very high social and economic costs. Perhaps, it could be unbearable for the government and highly contested.
Therefore, the ransom would bring some relief in short-term bills, but would not pay a part of the party launched by the previous government. The consequences of it will be seen soon.
The Euro, sensitive to such issues, fell in the early hours of the day, but began to rebound mildly during European session on Tuesday.
The same applies to the British pound, which touched 1.60 during the early trading session, following a UK trade balance deficit more than expected by analysts recovered some positions afterwards.
Today the Swiss franc was the currency that extended its decline against the dollar and it does not lack reasons. Two major U.S. banks announced that they would charge their customers interests for maintaining their accounts in francs. Despite the problems the currency is stable like the yen.
The European stock markets are mixed, like Dow Jones index futures. A low volatility was observed on the U.S. markets on Monday but there could be recovery on Tuesday.