"Good interview by George Soros on the US and Europe economic outlooks. Check out the piece on Ireland."

Eoin Treacy's view

My comment - Thank you for this interesting interview. It seems inevitable that both creditors and debtors will have to share the burden for the European debt crisis if the Euro is to survive in its present form. To date, the bulk of political discussion has focused on burden sharing post 2014. However, it is still not clear that peripheral populations will be willing to accept the austerity being foisted on them by the European Commission/ECB/IMF. There are already rumblings in Ireland of re-negotiating the terms of the bailout and a restructuring of Greek debt also remains a distinct possibility.

For the moment however, anxiety towards the European debt crisis has subsided somewhat. As George Soros points out, the core European economy's growth is currently offsetting slow recovery on the periphery. This suggests that the capital can be made available for additional recapitalisations if they are deemed necessary.

The Euro Stoxx Banks Index has found support near 150 again three weeks ago and has now rallied to test the medium-term progression of lower rally highs. While this recent move has been impressive, a sustained move above 200 would give a more convincing signal that demand is regaining the upper hand beyond the short term.

The Stoxx 600 Banks Index which includes UK, Swiss, Swedish and Danish banks has been less volatile but also has a medium-term progression of incrementally lower rally highs. A sustained move above 230 would be required to indicate a return to medium-term demand dominance.