german

A Crazy Week In Charts

A Crazy Week In Charts

What a week of utter craziness! After last week's inexhaustible flurry, we thought we'd see some respite. But no, the events just ratcheted one notch higher; with volatility in the financial markets at year-to-date highs and global developments on geopolitical, financial and economic fronts, we can barely keep up the the trance that is raving. So rather than using narrative to summarize what has been a very busy week, we thought of using charts to highlight the key talking points of the past 7 days or so.

This edition of the Daily Grail will be the first ever to feature a compendium of graphics and charts but we might indeed start to adopt a similar format in future editions for time constraints. We have tried to broaden the subjects covered under each piece while ensure each note remains relevant to our readers.

1-7 January: Oil & Euro Lowest Since Lehman As Grexit Fears Loom, EU In Deflation

1-7 January: Oil & Euro Lowest Since Lehman As Grexit Fears Loom, EU In Deflation

What a way to start 2015. The first deflation in the EU since 2009, record low yields on German sovereign debt, global energy prices keep tanking, US equities down for 5 consecutive days, and the news (or not) keeps flowing. For the record, major equity indices have started 2015 with the worst performance since the financial crisis of 2008. Whatever remnant of the 2014 "Santa Rally" turned out to be a ghost in a shell, and has now spooked global market participants.

The past week has been all about ratcheting up the "Grexit" rhetoric across the markets. Readers should be no stranger to the situation in Greece and the entire periphery of the Euro Union, which we touched upon in our last update preceding the New Year. The risk has indeed never been greater as it seems Germany has openly voiced that it won't be blackmailed by a Greek plunger. Remember, Greece is bounded by €240bn to the Troika under the various bailout packages extended to her.