Tuesday, December 16, 2014

Ruble and oil route, the stock turn red – The Republic

Ruble and oil route, the stock turn red – The Republic

MILAN – The route of the price of crude oil and the dangerous devaluation of ruble have led to an unexpected intervention of the Central Bank of Russia, which has driven rates of greater extent since 1998, when in fact there was a default on the debt of Moscow. The Central Institute has decided to bring the cost of borrowing from 10.5 to 17 percent, generating an immediate rebound of the uniform Russian but soon it is dispersed into the void. The ruble is back so to falter against euro and dollar, falling back to 77.3 to the single currency and 62 on the greenback (changes in direct). Do not stop even the fall of the price of the oil : for the first time since July 2009, the WTI slips below 55 dollars a barrel and Brent below $ 60 (the quotes).

The Central Bank of Moscow, which has already spent 80 billion of reserves in an attempt to defend the ruble, with the sixth rate hike from March to now also hopes to curb inflation. But according to analysts, the Russian economy will not be able to sustain this level of long rates, because they are already heavily affected by Western sanctions that followed the war in Ukraine, as well as by the decline in the value of the oil and the massive flight capital, more than 100 billion dollars. This move symbolizes yield the attempt to support” economic growth in the name of preserving the financial system says Bloomberg the manager Ian Hague . In any case, is the right move to do, and it was not easy to do it .

In this climate of instability, European stocks try to bounce in the opening session, but soon change sign even under the weight of negative data from France and Germany. Even yesterday, on the other hand, the day began with a substantial balance, only to turn in deep red with the business of the US investors and the new slip oil. A Milan Stock dominates the volatility, with the FTSE MIB comes to yield more than one percentage point and then back on par. Weighted banks, with MPS and BPM passing also suspended. Other titles tricolor, eyes back on Fca, which reported a + 3.7% of registrations in Europe in November, compared with 1.4% of the market. The other European stocks weaken: London 0.4%, Frankfurt and Paris -0.6%.

As mentioned, coming from opposite directions weak macro on PMI manufacturing, services and composite Eurozone . In Germany , for example, the index dropped to 51.4 points in surprise, disappointing analysts’ expectations for a strengthening at 52.3 points. Weighs especially the service component. A value above 50 indicates an expansion of output, while a lower level of the PMI indicates an economic contraction. Even in France are not centered expectations, with the manufacturing PMI fell further to 47.9 points. Unlike Germany, however, the services allow you to index the Alps to climb to the highest in four months to 49.1 points. Some glimmer positive comes from the overall figure of euro zone , with the composite index in recovery to 51.7 points, the maximum of two months. With these data in the background, the new president of the European Commission, Jean-Claude Juncker , is called the presentation of its plans for the relaunch. Meanwhile, the Italian trade balance in October marked a surplus rising to 5.397 billion and in the 10 months to 33.602 billion.

In the East, the manufacturing production in China has slowed in December, according to provisional data released today by the Hong Kong and Shanghai Banking Corporation (HSBC). The PMI index will stabilize at 49.5, the lowest level since May, when he scored 49.4.

Male, in the morning, the Tokyo Stock Exchange : 48 hours before the elections Japanese Nikkei index ended in heavy loss to a minimum of six and a half weeks. Even the Japanese Square is pushed down by the collapse in oil prices, which for investors is a sign of a slowdown in global growth, which will have no effect on Japanese exports. In contrast, the yen and Japanese government bonds have risen in value because they are considered in the narrow lot of safe haven assets. The Nikkei has yielded 2.01% and closed at 16,755.32 share. Overall, the index MSCI Asia Pacific is the minimum of two months. Speech opposite to Shanghai , which continues to grind record and closes on the maximum levels from April 2011.

Starting sitting rising this morning for ‘ against the dollar, after the first exchanges on international currency markets. The single currency, in fact, is trading at 1.2454 against the quota American greenback, compared to the assessment made of 1.2435 mark the closing indicative of Wall Street yesterday. As regards, however, the exchange rate against the yen, the European currency changed hands today at 146.08 against 146.40 last report. The spread between BTP and Bund stabilized just below 140 basis points, with the yield of ten-year Italian around 2%.

Today Wall Street has filed down a volatile session continuing on the road last week, the worst of 2014 and the first decline in seven after rising. Again weigh was the slip of crude; the headlights are now fixed on the Federal Open Market Committee (FOMC), the arm of the Fed’s monetary policy that today begins the meeting which ends tomorrow. References are expected not only on the timing with which it could start to raise interest rates in 2015 but also the thud of oil. Arrived to move over 300 points in both directions, the Dow Jones lost 0.58% at the end, the S & amp; P 500 has yielded 0.63%, the Nasdaq 1.04%. Today investors awaited data on starting new construction sites in November and the PMI manufacturing index in December.

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