Europeans Fail to Reach Agreement During Summit

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) September 19, 2011 -- The Euro is losing value against the dollar for the second day in a row while Asian stocks plummeted after European politicians were unable to present a plan to put a halt to the region’s debt crisis. Gold prices increased and the dollar appreciated against most other major currencies.

DT Trading experts report that the Euro had dropped 0.8% to 1.3689 as of 8:20AM in Hong Kong. The MSCI Asia Pacific Index dropped 0.6%, not accounting for Japan. Meanwhile, futures on the S&P 500 Index fell 1.3% and gold ascended 0.7%. The dollar index, which measures the value of the dollar against the currencies of six of the US’s main trading partners, increased 0.6%. EU finance ministers announced at their summit that the 18-month debt crisis is not leaving room for tax cuts or additional expenses for stimulating the economy, which is on the brink of stagnation. Economic reports on Germany this week show reduced investor confidence and a drop in production in Europe’s largest economy.

“Market players were hoping for some positive interaction between the European ministers of finance and US Treasury Secretary Timothy Geithner and, as a result, for a positive response to the debt crisis in Europe,” said Time Shroeders, managing partner at Pengana Capital Ltd in Melbourne. “Instead, they got only major uncertainty and, in the end, nothing was resolved.”

Greece’s ability to avoid a default this week is hanging by a thread since international observers will be assessing whether Prime Minister George Papandreou can meet the conditions to receive a bail-out. The European Union and International Monetary Fund inspectors will be talking today with Finance Minister Evangelos Venizelos. It is only during these talks that they will determine whether Greece’s government is worthy of another tranche of aid next month on the way to a second aid package established by EU leaders on July 21 of this year.

DT Trading analysts have been following the rumors circulating that US President Barack Obama will unveil a new program tomorrow. According to the administration, Obama adopted a proposal made by investor-billionaire Warren Buffet to implement a new income tax treatment for wealthy US taxpayers which will help collect over $1 million annually to help pay off the country’s debt. The president will recommend that the new tax rate be reviewed by a special Congressional committee tasked with finding methods to decrease the country’s $1.5 trillion deficit. Obama is planning to present his plan on cutting the budget deficit later this evening.

According to an official with close ties to the administration, the president hasn’t yet settled the issue of a new minimum tax rate for the wealthiest Americans. This rate was developed and proposed in order to create a situation where rich taxpayers pay according to the upper limit of the rate and workers with moderate incomes pay less. Obama has already proposed limiting some benefits for those who are in the highest income bracket and to cancel tax holidays for oil and gas companies so that they can contribute to the $447 billion bill on creating new jobs.

DT Trading Limited Analytical Department

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