In his testify to the Economic Committee in the US Congress, Fed Chairman Ben Bernanke commented that despite the US economy has been working relative well in the last months, there is 'significant risks' to the U.S. recovery from Europe's debt crisis.
Bernanke believes that European leaders are taking the world into disaster due 'their inactivity.' Adding more pressure over euro officials after president Obama has been driving talks with Germany, Italy and Britain heads claiming for a immediate solution for the crisis.
In Europe itself, Fitch Ratings downgraded the long-term debt of Spain by 3 notches to BBB from A, with negative outlook, the agency said in a statement Thursday. 'Spain is forecast to remain in recession through the remainder of this year and 2013,' says the paper and Fitch adds that in line with new expectations, Spanish government debt would like 'to peak at 95% of GDP in 2015.'
Next week is expecting to be calm a head of the Greece election on June 17th.Meanwhile, the guessing on the details of the big master plan to be discussed at the EU summit at end-June will continue and we could see another week in which Euro zone policymakers, directly or indirectly, could float various ideas.
Gold futures traded sharply lower during Thursday US session , extending overnight losses after Federal Reserve Chairman Ben Bernanke said the Fed stands ready to act if stresses escalate, but refrained from offering any details. This decline came just 3 days after the sharp move up following rising expectation over another round of QE. Buy on the rumor sell on the news anyone??