European debt crisis subside

Bank of America officials said ready to provide more monetary policy easing if the U.S. economic recovery is too slow to cut high unemployment rate and if inflation does not go down.
Concerns the European debt crisis that spread to Italy will spread to Spain, the country's fourth largest economy in the eurozone. An Italian government bond auctions managed successfully. This convinced the market that Italy will be able to manage their own debts without the backup of the IMF and the European Union. Italian Prime Minister Berlusconi tries to calm the fears of investors if the Italians could be affected by the debt crisis, he promised to accelerate debt-cutting measures and run a budget surplus this year.
U.S. Energy Administration Agency predicts oil demand will rise 1.6% this year to 88 million barrels per day. And world oil production will not be sufficient to meet the demand for oil in the world.
The euro remained the worst performing currency in July among other major currencies. Depreciated against the dollar fell 3.65 percent, 4.25 percent against the franc fell against the yen and fell 4.59 percent. After the release of news Greece have missed their interim targets for deficit reduction. European Union officials noted that there will be a possibility that the EU bailout fund formed last year can be used to buy bonds from the Greek, and debt at discounted prices.
Dutch Finance Minister Jan Kees de Jager has been persistent in demanding that the permit holders have voluntarily Greek debt to rollover their debt, even if it makes a "selective default" for Greece.

Data United States trade deficit climbed to its highest level in nearly three years. It seems that oil imports surged to burden the American trade balance, because crude oil costs on average U.S. $ 108.70 per barrel in May, the Commerce Department said.
Gold prices surged to record highs after the release of a report from the U.S. Federal Reserve policy meeting indicating the central bank might be open to further monetary stimulus. This is for the first time the Fed has made a direct reference to the third round of quantitative easing.
Credit rating downgrade by Ireland at Moody's Investors Service, joining Portugal and Greece who became the third European country in which the bond declared unfit for the investment. Ireland's ranking downgraded to Ba1 from Baa3 the previous level, Moody's said in a statement likely will require additional funding of Irish official.