Gold and the Swiss franc hit record highs on Monday while equities and the euro tumbled as the lack of any breakthrough to the escalating debt crisis in the euro zone and the United States sapped demand for risky assets.
With policymakers on both sides of the Atlantic offering no clear solutions to their respective debt problems, risk-averse investors are expected to incrementally keep increasing their exposure to safe-haven assets this week.
Even though Asian markets have remained largely resilient to the latest flare-up in the ongoing euro zone debt crisis, a U.S. debt default or the euro zone debt crisis engulfing one of its major economies like Italy or Spain could trigger sharp outflows from emerging markets.
In the United States, Republican and Democratic senators sought on Sunday to craft a plan that could, before an Aug. 2 deadline, avert an unprecedented government default while making modest cuts in the deficit.
"Investors are gradually losing confidence as the U.S. debt ceiling date nears and even though we expect a last-minute deal to materialise, this kind of behaviour is making markets very nervous," said Adrian Foster, head of financial markets research -Asia Pacific at Rabobank International in Hong Kong . Read Full Story Gold Shines
No comments:
Post a Comment