Draghi pushes down the euro: the single currency slips to 1.27 … – The Republic

Draghi pushes down the euro: the single currency slips to 1.27 … – The Republic

The uniform EU its lowest level since November 2012 in the wake of the words Draghi, “ready to act” against economic stagnation. Traders rely on new initiatives ECB after a disappointing auction Tltro. European markets close in red in the physical weakness of Wall Street

RAFFAELE Ricciardi

MILAN – Mario Draghi will still not be able to pass on the credit to the real economy, but traders are confident that will do more to fight deflation and stagnation in Europe and push downward on the ‘ € , to levels not seen for years against the dollar. Today, the single currency of the Old Continent closes down to $ 1.2731 and 138.49 yen but recovered from a low of $ 1.2697 session, the lowest quotation from November 2012, reached this morning.

We do feel, therefore, the negative expectations on the European economy, also certified by the latest data on German business confidence, with investors betting on a massive intervention by the ECB. The first auction of liquidity Tltro announced by the ECB, with which banks can withdraw money by paying very little (0.15%), but with a commitment to dispense to them and not to invest in government bonds or Similar gone well below expectations. But the will to widen the budget of the ECB trillion, clearly manifested by the governor, encourages banks: as a note Bloomberg

at UBS from Morgan Stanley were not impressed by the lack of liquidity taken to Tltro (82 billion versus expectations of up to 300) because the promise of more Dragons euro in circulation means that the single currency can not do anything but depreciate.

Even today, the governor reminded the press that the growth EU is weak and that the Eurotower is ready to act. In a speech in Lithuania, in view of the entrance of the country in the eurozone, Draghi said that the “consolidation of accounts” is the basis for sustainable growth in the long term and has held up the Baltic region as an example of recovery “even without resort to currency devaluation. ” The arc of the ECB, to date, seems to have remained only the possibility of a quantitative easing , a massive purchase of securities on the market, even though many may not be resolving the crisis. The same governor, even the words of today, remember that on the other hand can do nothing without the active reform policy.

When you consider that, on the other side of the Atlantic, the Federal Reserve is implementing a policy and goes to the opposite end of the stimuli and the extraordinary rise in the cost of money, you know how many players can see a euro / dollar rate of 1.2 during 2015 .

While the euro plays the role of protagonist of the day with these important movements on stock markets returns the instability after the weak start of the eighth and yesterday’s rally. Milan that in the morning he had scored major gains reversed course and closed in red 1.35%, London 0.99%, Paris 1.32% and Frankfurt receding 1.57%. Among the individual stocks in the FTSE Mib, try to bounce Mediaset, fresh from a series of declines that led the way to the lowest levels in over a month. In light even Finmeccanica and Telecom Italy.

From the USA, meanwhile, the requests for unemployment benefits rose last week by 12,000 to 293,000 share. The figure is better than expected by analysts betting on share 296,000. The Durable Goods Orders have fallen by 18.2%, as expected by analysts. And so too Wall Street accelerates downward, with the impression that the trader will face closer a rise in the cost of money: while in Europe the trading start to close, the Dow Jones gives l ‘ 1.2%, the S & amp; reverses P 500 1.3% and the Nasdaq is the most lingered at 1.7%. It also weighs the fact that the Russia is thinking of legislating to ensure the possibility of seizing foreign assets in country, as a response to Western sanctions. Apple suffers, who pays the difficulties of updating the operating system iOS8.

Investors look on the macro front, retail sales in Italy and upon wages: the former fell again in July compared to the year (-1.5%), while the latter rose by 1.1% in August compared to 2013 BCE records the first signs of improvement in terms of loans, which still remain in contraction. In the United States will then be published requests for unemployment benefits, orders for durable goods and the index of manufacturing activity in the Kansas City Fed. The spread , the differential between the yield of the BTP-Bund, is stable at 137 basis points to a yield of 2.35%. The Treasury has sold all of the 2.75 billion euro of the maximum amount offered in ‘ auction Ctz 2016: the average rate rises to 0.385% from 0.326% on August 26 last year. Also sold 1.47 billion Eurozone inflation indexed treasury bonds against a maximum target of 1.5 billion.

In Asia there has been a reverse trend compared to Wednesday: Weak Squares in Asia and the Pacific, in progress Tokyo . The Nikkei closed up sharply, pushed into positive territory since the beginning of the session, the sharp rebound on Wall Street and the further weakening of the yen against the dollar. At the end closed up 1.3% at 16,374.14 points. The Nikkei index level reached at the end of session is the highest for seven years, after two consecutive days of decline.

The offensive against Isis and rising tensions in the Middle East continue to pull upwards oil prices . In early trading in New York on WTI light crude slipped 37 cents to $ 93.17 a barrel. It is confirmed less moved the barrel of Brent, which is advanced by 3 cents to $ 96.98. L ‘ Gold in December down 9.6 dollars, 0.8% to $ 1,209.9 an ounce.