German Chancellor Angela Merkel told Greece Monday to make up its mind fast on accepting the painful terms for a new EU/IMF bailout, but the country's political leaders responded by delaying their decision for yet another day.
The current gold rally is expected to continue due to a combination of monetary and fiscal influences, HSBC analyst James Steel reported to investors Sunday.
A failure on the part of Greece's politicians to agree on an austerity framework rippled through the currency markets of London, the government halls of Budapest and the pits of the New York Stock Exchange Monday morning. The nonevent was only the headline occurrence in a morning that was also filled with contradictory, and at times despondent, statements out of Athens.
Greece let yet another deadline slip on Monday for responding to painful terms for a new EU/IMF bailout, as German Chancellor Angela Merkel made clear Europe's patience is wearing thin over drawn-out negotiations among its feuding political leaders.
Greece's coalition parties must tell the European Union on Monday whether they accept the painful terms of a new bailout deal as EU patience wears thin with political dithering in Athens over implementing reforms.
Greece's coalition parties must tell the European Union by Monday whether they accept the painful terms of a new bailout deal as EU patience wears thin with political dithering in Athens over implementing reforms.
A renewed focus on Europe's banking and debt crisis may quickly sap the nascent optimism about global economic prospects that followed a remarkably solid U.S. January employment report.
Greece's prime minister scrambled Sunday to convince lenders and politicians to sign off on a 130 billion euro rescue, after his finance minister said just hours remained to clinch a deal to avoid a messy default.
Euro zone finance ministers told Greece it could not go ahead with an agreed deal to restructure privately held debt until it guaranteed to implement reforms to secure a second financing package from the euro zone and the IMF.
Greek Prime Minister Lucas Papademos faces the critical task of convincing international lenders and political-party leaders on Sunday to agree to the stringent terms of a 130 billion euro ($171 billion) rescue plan to stave off looming default.
Greece's government on Saturday struggled on in talks with lenders to secure a 130 billion euro ($171 bilion) bailout before turning to the trickier task of persuading political leaders to back the unpopular reforms involved in the rescue.
European stocks were up around midday on Friday, hitting a six- month high as investors cheered data that hinted the euro zone may avoid slipping back into recession, eclipsing a disappointing start to the earnings season.
Many analysts remain bullish on gold and expect it to continue to rally in 2012.
Gold prices, headed for their strongest January in three years, rose Tuesday as fears of a Greek sovereign debt default receded, the dollar weakened and crude oil and copper prices increased.
Chancellor Angela Merkel cemented her political ascendancy in Europe Monday when 25 out of 27 EU states agreed to a German-inspired pact for stricter budget discipline, even as they struggled to rekindle growth from the ashes of austerity.
Greece's Prime Minister Lucas Papademos held talks on restructuring Greek debt with senior officials from the European Central Bank and the European Union after an EU summit on Monday, officials said.
The euro zone could fall back into recession this year, an ECB Governing Council member said on Monday, adding the bank's non-standard measures were a significant funding and confidence boost.
On the European currency, a mood of short-term relief tinged with longer-term doubt prevails among the world's movers and shakers at this year's World Economic Forum session in the Swiss Alps.
Greece must surrender control of its budget policy to outside institutions if it cannot implement reforms attached to euro zone rescue measures, the German economy minister was quoted as saying on Sunday.
Greece and its private creditors said on Saturday they were piecing together the final elements of a debt swap, and they expected to have a deal ready next week, which would be essential for sealing a new bailout and avoiding an uncontrolled default.
Fitch downgraded the sovereign credit ratings of Belgium, Cyprus, Italy, Slovenia and Spain on Friday, indicating there was a 1-in-2 chance of further cuts in the next two years.
European shares ended down on Friday as disappointing U.S. economic data prompted investors to cash in January's gains, dragging the blue-chip index to its first weekly loss since mid-December.
