The US equities have been pushed up by stronger pending homes sales were awaited to be up by just 5% in April from 5.3% in March monthly but they have come up by 6%. The confidence has brought back to the investors who continued buying in the European session with no new bad news released coming out from Europe!

As May EU PMI manufacturing index came at 55.8 from 55.9 in April and Services index at 56.2 from 56 in April showing stability of the economic expansion in EU unfazed yet by the debt crisis from expected tightening steps from the governments for capping their deficits which should effect on the demand which moves the growth up, after the disappointing report of the ECB which weighed negative on the single currency to record a new low last Tuesday below 1.2143 at 1.2115 which can add weakness to it versus the greenback.

The US equities have been pushed up by stronger pending homes sales were awaited to be up by just 5% in April from 5.3% in March monthly but they have come up by 6%. The confidence has brought back to the investors who continued buying in the European session with no new bad news released coming out from Europe!

As May EU PMI manufacturing index came at 55.8 from 55.9 in April and Services index at 56.2 from 56 in April showing stability of the economic expansion in EU unfazed yet by the debt crisis from expected tightening steps from the governments for capping their deficits which should effect on the demand which moves the growth up, after the disappointing report of the ECB which weighed negative on the single currency to record a new low last Tuesday below 1.2143 at 1.2115 which can add weakness to it versus the greenback.

The markets worries about the European financial situation have accelerated containing the market sentiment punishing the single currency across the broad today falling from 1.23 with calm market trading yesterday because of the US markets closing after the ECB report warning about the long term debt refinancing which look in need of 800 billion euros by the end of 2012 suggesting that the European banks are in need to be ready for facing bad loans following the debt crisis which can reach 123 billion euros for 2010 and 2011 to reach 105 for 2011 and for facing the bad loans from 2007 till 2009 they should put be ready with 238 billion euros. The financing problems are still looking ahead from the ECB report showing a serious need for storing stability and injecting funds into the nerves of the European banks too as the European governments. There should be a clear mechanism from the ECB for facing this problem which threats the financial system and the economic growth which is actually struggling and exposed to further downward pressure from expected tightening steps from the governments for capping their deficits which should effect on the demand which moves the growth up.

Comments from china about keeping its investments in the single currency as they are in spite of the volatility in the markets because of the debt crisis could restore some confidence in the Euro and the markets helping the investors to take risks again after a massive selling in the equities markets. Dow could get back above 10000 last Thursday after a dovish closing last Wednesday below this psychological level at 9974 which helped to hold its recent recorded low versus the greenback at 1.2143 unchanged but the selling got back to the markets by the end of the week by the same volatile way keeping the single currency gains below 1.245 to close last week below 1.23 again at 1.227. The US stocks ability to cover their loses last Thursday could help the European stocks to cover some of their loses but the investors' worries about the negative impact of the European debt crisis on the Spanish banking sector after a tight voting results to pass the austerity measures to control the debt in Spain could weighed on the single currency and the market sentiment which has been already hit by growing tension in the semi Korean island by the end of last week driving the investors to sell again taking risk aversion positions.