China Is Willing To Spend Huge Sums Of Money To Save &Nbsp In Europe.

Last weekend, the finance ministers and central bankers meeting of the group of twenty (G20) failed to reach an important agreement, and investors will solve it. European debt The hope lies in the EU summit held on Sunday (October 23rd). However, there was news that China made a secret commitment during the G20 meeting, willing to spend tens of billions of euros to invest in European infrastructure and increase the purchase of sovereign bonds in the euro area. However, at present, the market continues to see the euro trend. 　　

According to the British Sunday times, the Chinese delegation has hinted to be willing to invest billions of euros in the acquisition of infrastructure assets in the euro zone's financial stricken countries, and the Bank of China will increase its purchases of European debt, according to a report by the G20 times. At the same time, the report also said that China Hainan Group intends to acquire Greek Athens Airport. However, all these actions must be further reduced in the euro area countries and effective fiscal reform.

Earlier reports said that the BRIC governments, including China, Brazil, Russia and India, were discussing ways to inject capital into the IMF, including the purchase of euro zone countries. bond Funding for special purpose vehicles or special loans to IMF. However, developed countries, including the United States and the United Kingdom, oppose the adoption of IMF funds to help euro zone countries.

The just concluded G20 finance ministers and central bank governors' meeting issued a 7 day ultimatum to Europe, demanding that euro zone Member States meet the current challenges in a comprehensive and sustainable way at the EU summit held on 23, increasing the influence of the European financial stability mechanism (EFSF) and further preventing the spread of the European debt crisis.

Eurozone leaders are expected to sign the EFSF summit and the bank at the EU summit. capital The restructuring plan and the second round of aid given to Greece. EU officials say the most likely way is to use the 440 billion euro EFSF to provide financing guarantees for financial hardship countries to stabilize market confidence.

Tyse, President of the European Central Bank (ECB), said that if necessary, the EU treaty should be amended to avoid a country making trouble for other member states. He criticized the state for not respecting the rules. But he added that even if it was not repaired, it would be more stringent to implement relevant governance provisions. He stressed that the euro is still a "highly credible" currency and that the euro zone is not threatened.

The euro / dollar slipped slightly in the Asian market on Monday (October 17th), but the exchange rate remained stable above the 1.3800 level and is currently trading near 1.3850. Last Friday (October 14th), the exchange rate was approaching the 1.3900 pass, reaching the highest level of 1.3892.

Shelter Harbor Capital analyst Brian Kelly doubts about the euro's rise. He believes that those potential European debt crisis solutions will be "a disaster". Kelly expects investors to withdraw their assets from the eurozone. He sold the euro on Monday morning.

Commerzbank AG said that the euro / dollar will drop to 1.2000 in the next 3 months, which is already approaching resistance level after its strong rise last week. The agency said that since October 6th, the euro / dollar has risen by 2.2%, but resistance has followed. The 200 day moving average and the 50% Fibonacci retreat from the August high are near.

Axel Rudolph, an analyst at the agency, said that once the resistance was reached, the euro / dollar would drop to a low of 1.2860 in January 2011, and then drop to 1.2000. Once the 200 day moving average 1.4064 strong resistance, then the euro / dollar will regain the downward trend, the downward target will point to 1.3582.