Tag Archive for stocks

All Eyes On European Situation

Europe will once again decide in how Wall Street will change this week, culminating in a European summit expected to make a definitive solution to the debt crisis that has shaken the euro area for nearly two years.

Last week, the U.S. stock market recorded its best performance since March 2009 in favor of such hopes for this crisis finally resolved.

If all goes according to plan concocted by Paris and Berlin, the EU has indeed made a big step towards a union budget Friday night, with agreement on a change of European treaties including greater fiscal discipline of the 17 countries the euro area.

Previously, according to this ideal scenario, the European Central Bank (ECB) will be on Thursday once again lowered its interest rates to avoid a relapse into recession and to give some air to banks experiencing difficulties in refinance.

But this happy outcome to the crisis is far from certain as Berlin and Paris still differ on the proper role of the ECB and how to control the budgets of the countries in the euro area.

“Next week everyone will be focused on the summit on Friday. But do not forget that we are already at the highest level since the fifteenth (early) the crisis in the euro area. Each time, stakeholders enthusiastic market before maturity and after … it’s the disappointment, “said Ken Polcari, managing director at ICAP Equities.

Wall Street has evolved sawtooth since the beginning of the fall at the discretion of the evolution of the crisis in Europe.

While the S & P 500 benchmark index fund managers, rebounded by 7.4% last week, volatility remains high due to the sensitivity of investors to any bad news from Europe.

But the predominant feeling is that European leaders have taken the measure of the crisis.

US Makets have suffered for the second straight session

US Makets have suffered for the second straight session of a heavy correction on the eve of triple witchng. This decrease was inspired by the fear of contamination of the European debt crisis to Wall Street.

A more credible scenario that rates have greatly strained throughout Europe (except France, where the ‘spread’ with Germany fell by 30pts-base after setting a record 200 bps).

The correction action was accompanied by a relapse of -3.7% of the price per barrel to $ 98.75.
Oil has been affected by the publication of an index ‘Philly FED’ (activity in the Philadelphia area) in unexpected contraction of 8.7 to 3.6 this month, against a consensus of 9 expected by economists .

With a wave of redemptions of short, indices resumed US 0.3% over the last 2 minutes of the session and 0.5% in the last quarter of an hour. Fortunately, because if Wall Street would have posted an overall loss greater than -2%. The Dow Jones lost to 9:45 p.m. 220Pts not yielded more than 135 Quote.The ‘S & P fell by -1.7% (instead of -2.2% to 9:30 p.m.) but does not preserve the very important support 1.220Pts and the Nasdaq lost -1.95% in 2588 (against 2.576Pts to 7:30 p.m.). The Nasdaq Composite was down significantly the MM100 (2.615Pts, a level that coincides with the former floor of June 17) and even the MM50 (2.590Pts).

The S & P 500 designs over the past 3 weeks a threefold decline in the top 1.285/1.275/1.265Pts: the breaking of the MM100 (1.225Pts) followed by a slide in 1.219Pts (formerly Zenith 1 and September 16) a valid clearly distressing scenario.

While some Chartists believe that the sinking of the ‘key levels’ mentioned above is the line thickness, do not forget that without the recent rebound in 2 minutes already mentioned, the signals would bear suffered ‘no ambiguity.

Asian stock markets moving sharply higher

Asian stock markets were moving sharply higher Tuesday morning, in the wake of American and European markets, which ended in the green the day before, driven by the hope for positive developments in the debt crisis in the eurozone.

The Nikkei 225 index of blue chips in Tokyo progressed from 1.80%. Sydney took 3.14%, 3.79% Seoul, Shanghai and Hong Kong 0.64% 2.47%. The day before in New York, the Dow Jones closed on an increase of 2.53% and the Nasdaq 1.35%. European shares had also finished on net rises, boosted by the willingness of Europe to step up the relief fund of the euro area (EFSF), and the hope that the European Central Bank (ECB) reduced soon interest rates.

Paris ended up on 1.75%, 2.8% Frankfurt, Milan and Madrid to 3.32% from 2.56%. London increased by 0.45% only. Rumors press reports Monday of a proposed quadrupling the lending capacity of EFSF to 2000 billion euros. Also an official of the ECB, the Austrian Ewald Nowotny, did not rule out declines in interest rates in the euro area.

‘This is not a market downturn because nothing has changed on the merits. We just have a break before further discussions planned between Germany and Greece, ‘said Tsuyoshi Segawa, broker at Mizuho Securities in Tokyo, quoted by Dow Jones Newswires.

The Japanese government was prepared to buy more bonds relief fund if the European authorities in the euro area establish a mechanism to calm markets, said Tuesday the Minister of Finance of Japan, Jun Azumi. ‘If a plan is launched to ease tensions in financial markets by helping Greece, I do not exclude that Japan is involved’, said Azumi at a press conference, according to comments reported by the news agency Kyodo.

Edit translation
Machine translation (Google):
Loading...
Copy to editor
or Cancel