STT Weekend Lounge: 23-26 Jan, page-8

  1. 24,192 Posts.
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    1stly the QE1 in the Eurozone... Will:-

    1. drop the value of their currency starting in March so instantly things made or dug up in Oz will become more expensive to them.

    2. Make Trips to Australia by Europeans more expensive decline in tourists/holidays ?

    3. Affect the earnings of companies that predominately operate in Euros

    4. Will likely boost investment in European bourses due to the fact that increasing monetary supply will likely lower interest rates making les attractive to stash you cash in the european banking system ... thus the migrate to equities some may find its way to the ASX

    5. Pretty much mirror the same that happened when the US did it a few years back.

    6. Likely have a further +ive affect on the Gold/silver price as a safe haven for euro investors .. even more attractive given weak gold price generally lately

    7. Price of imported European goods (goods & specialty food items etc) will fall may cause some trauma for Aust competitors.. Vehicles, Wine, Olives cheeses, etc
 
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