Concerns over the debt ceiling debate in the U.S., along with sovereign debt woes in Europe sending peripheral debt to nearly unsustainable levels, have put pressure on risk assets across the board and sent investors fleeing for safe-haven assets like gold and the Swiss franc.
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As U.S. money market funds become more risk averse in the face of renewed sovereign debt woes in Europe, dollar liquidity has begun to dry up in the Old Continent.
Markets have seen bouts of volatility driven by political uprisings in the Middle East and Northern Africa, the earthquake and ensuing nuclear crisis in Japan, and ongoing sovereign debt issues in Europe.
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In addition, the company now faces market contraction in the wake of the sovereign debt situation in Europe, rising unemployment in the U.S., softness in consumer confidence and lower GDP expectations in many parts of the world.
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Markets have definitely entered a new phase in what has been a protracted sovereign debt crisis in Europe.
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Supply-side driven entrepreneurship misguides animal spirits, wasting resources and talent, fueling asset bubbles that end up in financial crisis like the US recently experienced, the sovereign debt crisis in Europe, and the Japanese real estate market collapse of the 1990s.
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However, if the current volatility in commodities and emerging markets persists, and is further compounded by factors such as the continuing sovereign debt problems in Europe, there can be a downside to our forecasts.
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The continued sovereign debt problems in Europe remain as a general support for the market.
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Meyer said that he believes the sovereign debt crisis in Europe is far from over.
Oil markets have been affected by sovereign debt woes in Europe, but in another way.
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And, of course, there is the added level of worry created by the sovereign debt problems in Europe.
This concern is compounded by a sovereign debt crisis in Europe, high and persistent unemployment, and uncertainty about U.S. government policy.
It improved its full-year guidance and said that the current sovereign debt crisis in Europe was unlikely to disrupt air traffic.
The sovereign debt issue in Europe is the main support, he said.
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With sovereign debt issues in Europe continuing to create widespread concern among investors, gold is benefiting from the resultant flight to safety.
Lascelles says that the ongoing sovereign debt crisis in Europe means big risk for emerging market investors, including investors buying Chinese equities.
Investors have flocked to gold on continued U.S. dollar weakness, sovereign debt woes in Europe, and a general fear that the global economy is slowing.
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The sovereign debt crisis in Europe has provided enough systemic risk to keep money out of higher beta emerging market equities and in bonds or cash.
Last week, actions to address the sovereign debt issues in Europe and a stronger-than-expected ISM report in the U.S. drove stocks to five consecutive days of impressive gains.
The Sovereign debt crisis in Europe only bolstered this fear.
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Moynihan also addressed the ongoing sovereign debt crisis in Europe.
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Major inflection points in the market are missed by the best investors and include the credit crisis, flash crash and latest concerns over sovereign debt levels in Europe.
Indeed, sovereign debt markets in Europe have been pricing in the political and economic weaknesses that have emerged with slow-moving reforms to address the crisis and data dips in production and output from the euro zone.
And there are serious financial problems still to be resolved including on-going sovereign debt issues in Europe, the budgetary mess in Washington, continued weakness in American residential housing, and a seriously overextended U.S. commercial real estate sector.
Given the many economic headwinds facing the U.S. economy (high unemployment, low consumer spending, increasing commodity prices and the fear of tightening credit given the ongoing sovereign debt crisis in Europe to name a few) prospects for increased corporate earnings stemming from increased sales seem difficult.
Furthermore, although there has been some form of a conclusion to the Greek debt crisis, there hasn't been a resolution to the sovereign-debt crisis in Europe and the inability of banks to warehouse risk due to risk and regulatory considerations, said analysts at Nomura.
Gold demand in general has soared globally this year, as a result of the sovereign-debt crisis in Europe and the Federal Reserve's new round of bond buying.
Investors are understandably scared of the sovereign debt crisis unfolding in Europe.
The sovereign debt crisis exists not only in Europe, but all over the world.
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