Archive for June, 2015

US Jobs market report and Greek crisis

June 30th, 2015 Comments off

Everyone in these days is talking and discussing about the Greek crisis.

But another danger is already looming on the horizon: At the end of this week the US jobs report June 2015 will be released. If it comes out strong (which can be expected) this could mean that the Federal Reserve can no longer withhold rising interest rates!

This would mean that finally after years the change of the interest environment has arrived and interest rates at least in the US $ would start to rise again. Some days ago the yield of the 10 y – US treasury bond has already been near 2.5%.

So if rising interest rates would spread to the Euro what would be the effect on highly indebted European countries beyond Greece?

Which interest rate will investors ask for in order to be compensated for the risk to finance p.e. Portugal or Italy  in an environment of rising interest rates backed by a strong US economy?

This crisis story seems to have more chapters than only the Greek one!