Europe Suffers Bailout Blow

Currencies Direct October 31st 2011 - < 1 minute read

sentiment in the markets shifted again over the weekend as China commented
on the Eurozone’s planned bailout package. China, which has taken even more
focus lately as European leaders look towards the Eastern powerhouse to invest
billions more into Europe to prop up the ailing economies and banks, have yet
to confirm their position. The most recent comments stated that China will co-operate and said “a prosperous and
stable Europe is important to China’s
stability and development”, but it will not be the “saviour” if the indebted
nations. This is likely to keep French President Nicolas Sarkozy up at night as
he has been on the phone to his Chinese counterpart saying Beijing
has a “major role to play” in Europe’s

Euro loss some of the ground it made towards the end of last week as traders
looked at the potential of this new bailout package failing apart. Europe needs
China to add at least €60bn
on top of what they already have put in to make this new step in securing Europe’s future viable. Without it, there aren’t enough
willing sovereign states or wealthy individual investors to progress and the
top brass across Europe will have to look for
a new way of saving the single currency.

is a mass of data due out this week with UK
on Wednesday, the interest rates decisions from the US
(also Wednesday) and Europe (Thursday) with the
week closing on US Non Farm Payrolls on Friday. These will add to the current
volatility in the markets, but the ongoing Euro crisis will continue to stamp
its authority.

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