The surprisingly powerful increase of the American dollar continues to worry stock markets all around the globe. In addition to that, the poor, uncertain economical situation of Greece and the Mediterranean country`s failure to pay its debts in the proper way also represents one of the most discussed subjects of today`s economy and at the same time makes the global stock markets fall on worries. Meanwhile, a new telecom giant might emerge as Nokia confirmed it has plans to buy French rival Alcatel-Lucent. Nokia announcement to buy Alcatel boosted the stocks of both companies.
The dollar rally and Greek bankruptcy have eclipsed other series of hot topics that are debated in the world of economy. For instance, the possibility of two European telecommunication companies coming together has been an overshadowed piece of news.
Investors and important stock market players have waited for detailed reports in connection with the rate growth from the Federal Reserve, scheduled for the rest of the current year. At the same time, they have watched the dollar becoming stronger and stronger, reaching a 12 year high as apposed to a large variety of globally relevant currencies.
“Given the wobbly start to the year in the U.S., a stronger dollar and the plunge in oil prices, I think it could be a really rough ride culminating in the first decline in earnings in six years,”
stated Craig Erlam, one of the most important market strategists at London located forex broker OANDA.
The rise of the dollar has also affected the price of the gold, which was decreased to less than 1,200 dollars an ounce.
Alcatel-Lucent, the French company whose object is telecommunication gear, has been rumored to merge with another bigger company in the field, Nokia. The Finnish telecommunication gear maker is told to having planned to acquire Alcatel-Lucent thus creating a major group, valued at 40 billion euros (42 billion dollars).
Global stock markets also had another problem to deal with, which top trended the economy and business topics section. A report has presented Greece as not being able to pay its debts in the proper way, in spite of the country`s prime minister, Alexis Tsipras , offering an official denial to these news.
John Plassard, who is in the position of senior equity sales at Mirabaud Securities expressed his concern with the Greek situation. He stated in a comment that even if Greek prime minister Alexis Tsipras has officially denounced the rumors, the global stock markets worry about a hypothetical incapacity of Greece paying its debts. Such Greek default is one of the most disquieting hypotheses for stock markets around the globe.
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