Markets down on

internal EU-quarrels

Last hours disagreements between France and Germany on the role of the proposed new emergency bail out fund, have created new fears and dispair in global markets. Markets are back in deep red in US and Asia and futures for Europe and opening in US are pointing down threatening to wipe out gains over the last weeks.

The Euro is falling along with oil (NYMEX 86 and Brent 108) and commodity prices. Copper prices, one of the best indicators of economic growth, are falling for the seventh consecutive day. Even safe haven gold, is falling 65 dollar from from 1675 at the start of the week to present 1610. The US Federal reserve, FED, indicated yesterday that the US economy is showing slow, but steady progress with no turn around in either employment or housing. This careful statement, however, boosted the strength of the dollar.

An emergency meeting in Frankfurt yesterday evening between Merkel and Sarkozy ended in no results or statements with mixed signals coming from the countries top officials prior to the crucial EU-summit on Sunday both to the functioning of the emergency fund and the “hair cut” for Greece. As a prelude demonstrators came out in great numbers and changed central Athens into somewhat of a war zone, while Parliament discussed new austerity measures. Inside the EU it still seems to be disagreements as to whether the “hair cut” shall be as big as 50 %.