Two Ways to Play: Greece Approves Austerity Package
Strengthen your portfolio in good times and bad.
The euro is getting a slight lift this morning on news of Greece's cabinet approving a new austerity package.
Finance Minister George Papaconstantinou will go over the details shortly but the new plan will save the government 4.8 billion euros according to the Financial Times.
Greece will also aim to cut its budget deficit by four percentage points to 8.7% of its GDP. Part of the new measures include another increase in excise taxes on cigarettes, fuel, and alcohol -- the second in two months. Also, many expect an uproar over a pension freeze, and a 30% cut in annual Christmas and Easter bonuses for public-sector workers.
From the Bull Pen: With the whole world shorting euros, the squeeze could be swift. For a trade, look to the euro ETF (FXE). Sell stops are essential so consider one near $134. Closing above $136.50 would also improve the bullish technical outlook.
From the Bear Cave: The currency crisis will only eventually spread to the US dollar. Bears can consider the bearish dollar fund (UDN), which is sitting at $26.40 support. A sell stop can be set below that level.
For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.
A Quick Check Around the World
Asian trading closed with the Nikkei 0.31%, India 1.36%, Hang Seng -0.14%, Shanghai 0.78%, and Taiwan 0.42%.
Across the pond, we see the FTSE -0.05%, CAC -0.03%, DAX 0.03%
As of 8:10 AM EST, S&P Futures are trading -1.000 to 1116.50. Nasdaq futures are -1.250 to 1851.00.
A Look at Commodities
Over in commodities, crude oil is +0.39 to 80.06 while gold is +3.100 to 1140.50 this morning. Silver is +0.111 to 17.175 and copper +0.0060 to 3.4185.
The dollar Index is -0.2600 to 80.3200.
On the Radar
07:30 Challenger Job Cuts YoY
08:15 ADP Employment Change -10k cons.
10:00 ISM Services 51.0 cons.
10:30 Crude Inventories
02:00 Fed's Beige Book
Click here for the full trading radar.
Happy Hump Day! Good luck!
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