The S&P 500 has risen to the highest level since September 2008 today. This happened after President Barack Obama agreed to extend tax cuts, Copper and Gold rose to record highs as a result of this news.

This represents the market finally returning to its position prior to Lehman Brother collapse, Obama has said that he will agree to a two-year extension on all Bush-era tax cuts in a compromise he called “an essential step on the road to recovery.”

The EU is set to approve the Irish rescue package whilst the region’s finance ministers have ruled out any requirement for immediate aid for Portugal and Spain or an increase in the EU rescue fund currently at 750 billion-euro ($1 trillion). The Euro has weakened today on ECB speakers comments and this news, a retest of 1.20 on GBP/EUR now looks a likely result in the coming days. Finance ministers now seem reliant on the ECB’s bond purchases to calm debt-spooked markets.

A 22-week high in ECB bond-buying has masked speculative attacks on the Euro in recent days, divisions in the Eurozone governments over the next steps to fight the explosion of debt that threaten the currency remain however. The animosity as a result of the redistribution of wealth from the richer areas to bail out the poorer regions will not go away and remains a distinct threat to the Euro.

Best Regards
Luke Zorab

“Any opinions expressed in this document are those of TorFX analysts. Any analysis and/or forecasts provided are aimed at helping clients understand market conditions and developing trends. Clients are wholly responsible for their own trading decisions.”