China Labor Day TV Sales were flat; Following Panel Price Trend Remains to be Closely Watched

After the election, the prospect of Greece exiting the eurozone has raised sharply, causing Moody Investor Service to be likely to cut its credit ratings on over 100 banks. Once it’s confirmed, the deteriorating situation will drag down European financial industry and further bring difficulties in making profits and loans. Meanwhile, European governments have been following austerity program to curb their deficits due to European debt crisis, causing projected negative eurozone economic growth of 0.3% based on IMF’s forecast. Furthermore, economic regression in Greece, Italy, Portugal, and Spain is projected to persist. In addition, unemployment rate in southern Europe reached 20% while youth unemployment rate hit 50%, resulting in severe economic and social problems.

As global stocks plummet due to political and financial fluctuations in Europe, capital is increasingly flowing toward the US dollar to avoid risk, leading to the appreciation of US dollar. Furthermore, oil price has plunged below $100/barrel and stand at $94.7/barrel on May 14th. International oil price has fallen by 6% since May, while gold price dropped below $1600. The decreases in both oil and gold prices reflect a prospect of uncertain economic outlook as well as a pessimistic attitude toward political and financial fluctuations in Europe.