Thursday, December 18, 2014

The Fed does run markets, to the lowest rates – AGI – Agenzia Journalistic Italy

The Fed does run markets, to the lowest rates – AGI – Agenzia Journalistic Italy

The Fed is run market rates to a minimum 14:46 December 18, 2014

(AGI) – Rome, December 18 – European shares are rallying, with increases of around 2%, after the announcements of the Fed, thus imitating ‘Wall Street and Asia. The markets have appreciated that the Fed, at its last meeting of the year, has shown optimistic on economic trends and the US has said that it will ‘”patient” before raising rates, stressing that such expression is “consistent” with the old formula by which the cost of borrowing would have remained at its lowest for a “considerable time”. In other words, Janet Yellen has reassured the markets on a measure indigestible as the increase in the cost of money and the rates have jumped at the good news, reversing the route, putting behind the fear of Russia, the fall in price spike oil and the presidential elections in Greece and resuming purchases. The greenback immediately ragito good indications of the Fed, leaving the euro to below $ 1.23, not far from the minimum of two years of 1.2247. To bring a smile to the markets we thought even the oil, which has slowed his fall, with Brent back around to share $ 63 per barrel. But mostly we thought the ECB to support the risk appetite of investors, opening the Quantative easing, with an interview with the Wall Street Journal of Coeuré Benoit, a member of the executive of the Eurotower, according to which the purchase of securities of State and ” the basic option “for a possible program of ‘quantitative easing’ of the ECB as” to do more ‘action is needed on market segments where there is’ greater liquidity ” although this ” not means that the ECB will buy ‘only government bonds. ” The declaration and ‘a further sign of the real possibility’ that in early January, if inflation will remain ‘so’ low, the institute Frankfurt majority decides the purchase of assets. In confirmation of what ̵ 6;the spread between ten-year BTPs and German counterparts and’ restricted to 134 points, from 137 of yesterday’s close, while the yield and ‘dropped to a record low of 1.92%. Meanwhile Russia Vladimir Putin and ‘out of the closet, accusing the West of wanting to keep the “leash the Russian bear” and that he had erected another Berlin Wall “virtual” with Russia. On the crisis Putin gave assurances on the premises of the ruble and the economy. “The developments are unfavorable, we will have to revise our plans,” he said, adding, however, ‘that “a positive change from the current situation and’ inevitable ‘. According to Putin perhaps serve a couple of years out of the crisis, though, assures, “the central bank and the government are taking appropriate measures.” This cautious optimism, to which Putin has not added for the immediate further extraordinary measures has not entirely co nvinced the markets. The ruble has started to grow over the Top 60 US dollars, while the Moscow stock exchange and ‘bounced 5%. (AGI).

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