Greece uncertainty poses threat to eurozone

billion and the resource driven nation Australia at US$136 billion.
In Europe, it has been the UK that has been leading gains in such deals with a hefty US$124 billion.
The situation in Europe is worsening as Spanish borrowing costs continue to soar with Italian bond auction failing to give the market a breather.

The single currency weakened against the dollar to trade at US$1,2834 as a Greek impasse threatened global sentiment with fears of a debt contagion and Greek exit gripped the market.
The euro also pared losses against the yen and the sterling pound, as it touched 102,50 yen and fell below 80 pence per euro as predicted to touch 79,72 pence per euro. At the moment there’s at least one thing the bulls and bears on the US economy agree on, the US dollar as the most undervalued major currency in the world

will continue to lead gains as long as Europe’s sovereign debt crisis threatens global recovery.

The dollar index, which measures the performance of the greenback against its major trading partners, touched 80,93.
The euro has fallen by 2,3 percent this month against the dollar, boosting demand for dollar assets such as treasuries as traditional havens from the market turmoil diminish.

At the moment the dollar is stronger against the euro and the yen and even against emerging market currencies.
Greece coming back to the fore has really been weighing on the euro as uncertainty as to whether Greece will exit or stay has made Europe so helpless.
Despite a dollar rally, the biggest problem facing the dollar is its value which has fallen in the foreign exchange markets as the Federal Reserve has printed US$2,3 trillion to inject in the economy after the financial crisis began five years ago.

The dollar strengthened against the yen to trade at 79,85 yen from 79,67 as mergers and acquisitions seem to assist a dollar rally.
In London, the sterling pound was best performer against its peers in its quest to restore its safe haven status.
The sterling pound gained against the dollar as it touched US$1,6097 and rose against the euro and the Swiss franc. Pound extended gains against the euro, as euro fell below 80 pence per euro to trade at 79,72 pence per euro as we continue to see a capital flight from the euro area.

It rose against the Swiss franc to touch 1,5045 pence per franc and Swiss franc pared gains against the euro and the dollar. The Swiss franc rose by 0,1 percent to the euro to touch 1,2007 and was little changed against the dollar to trade at US93,57 cents.
The Canadian dollar touched parity against the US dollar meaning that it gained, supported by a better performing US economy buoyed by Europe’s problems.

The Canadian dollar was trading at US$1,0023 per dollar. In Asia, the Chinese central bank reduced its reserve requirement by 50 basis points to free up cash for lending and help insulate its economy.
That boosted Asia stocks to the upside for half of the trading day as a Greek impasse seemed to temper around with the Chinese policy.

The Aussie dollar had earlier rose above parity to the US dollar upon such news as the currency seemed to be well supported but reversed gains to fall below parity to touch 0,9964 against the US dollar.

South African markets
The rand has fallen by 13 percent since September 2011 as those factors that supported the rand seem to be mute.
The rand fell against the dollar as European headlines particularly Greece seem to hurt the South African currency.
Risk appetite has been put on hold and it seems so for weeks to follow. The rand touched 8,1933 per dollar and it seems to be consolidating and as the euro comes

under pressure the rand will remain volatile and fragile to its trading partner as demand in the euro-area for commodities is dull.

Zimbabwean markets

A closed market with so much Government interference in the private sector, the Zimbabwe Stock Exchange has not really danced along to the earnings season tune.

We have seen some good earnings figures, but so far the pick of the bunch has been Delta.
Delta posted a whopping US$75 million profit, up 38 percent from the previous year, the company has top-line revenue.
It’s a company with sequential increases in revenue and profit. Delta as a counter is a buy considering its fundamentals.

Commodity Markets
Gold continues to be hammered by a strong dollar but at US$1 557,50 an ounce, these levels are buy signals and as it continues to fall keep buying.
Going forward, gold will be supported by uncertainty in Europe, central banks and governments.

Crude oil fell to touch US$94,17 per barrel in Europe and a stronger dollar is hurting demand. Saudi Arabia said it will cut down on supplies to at least push up prices but Europe is going to be a big factor. May the markets treat you well.