The market worries about the Japanese earthquake consequences are still containing the market sentiment hurting the risk appetite which has been hit last week by Moody's downgrading of the Greek sovereign debt 3 notches to B1 and Spain's debt to Aa2 triggering further worries about the debt risks evaluation in the Euro area while the markets are preparing for a tightening cycle to be entered by the ECB for containing the prices which should increase the cost of borrowing and covering the bonds auctions in Europe lowering the bonds and stocks prices after they have been underpinned by the adopted easing stance of the ECB after the credit crisis until now and in a reaction against these increased market worries, the European countries after germane approving on continued pressure from other members recently agreed during the weekend to extend their 250b Euros package for aiding the ailing European countries of debt to 440b Euros while the markets can not rule out a new request from Portugal following Ireland's request last year to have an aid from this offered bailing out plan accompanied with the IMF which is supported mainly by US.

The risk appetite has been hurt strongly by Moody's downgrading of Spain's debt to Aa2 triggering further worries about the debt risks evaluation in the Euro area while the markets are preparing for a tightening cycle to be entered by the ECB for containing the prices which should increase the cost of borrowing and covering the bonds auctions in Europe lowering the bonds and stocks prices after they have been underpinned by the adopted easing stance of the ECB after the credit crisis until now.

The markets are waiting today curiously for the MPC meeting decision after the recent meeting minutes have shown that there is growing of the voting for tightening after as Mr. Dale has given his vote to hike the interest rate by .25% like Mr. Martin Weale and Andrew sentence has called for hiking by .5% while Possen was the only vote for increasing the buying bonds plan by another 50b Stg while the other 5 MPC voting members including BOE president Mr. Mervin King preferred leaving the interest rate unchanged keeping BOE 200b Stg buying bonds plan unchanged and this mixed position is reflecting the performance of the sterling which rises when it finds signs of inflation and quickly gets back under pressure with the signs of economic weakness and both directions signs are existing containing the sterling movements capping it from catching up with the single currency rising versus the greenback despite breaking its previous resistance at 1.6296 which could not add momentum to it to get higher versus the greenback as it is still contained in the same time by the signs of growth downside risks...

The worries about the debt positions inside the Euro zone came back containing the current market sentiment after another downgrading of Greece credit rating by Moody's to trigger selling in the European equities markets and to put pressure on the single currency which is waiting for a close tightening action by the ECB as it has become widely expected after Trichet's recent comment which is well known in the markets as a reference of a tightening action to come in the next meeting of the ECB that it is strong vigilance warranted to watch the prices but this waited action for containing the prices over the medium term has been seen as another obstacle in the way of covering the costs of borrowing inside the European countries ailing of debt...