European Financial Markets

Pinnacle Digest writes: Bonds in many western European countries rose yesterday, driving the annual yield on 10-year Bunds down to 1.35%. The turmoil in European Financial Markets is accelerating and it's becoming obvious a more bold approach by central banks is warranted.

Spain, next to Greece, remains the next biggest fear emanating from the Euro-zone. Retail sales collapsed 10% in Spain last month in a year over year comparison to 2011. At the same time, inflation increased, fueling higher living costs putting pressure on Spain’s deepening recession.

Credit Suisse analysts have forecasted a stimulus package coming from China, up to half the size of 2008's $700 billion program. If this happens, it will be game on so to speak for the Americans and anyone else hoping to have a chance at victory in this escalating currency war.

Georg Grodzki at London's £391 billion Legal & General insurance and investment group has some interesting comments in regards to Spain's spiraling debt issues.

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