Monday, February 15, 2016

European shares sharply higher, to tow and Tokyo Dragons – The Republic

MILAN – On a day with no Wall Street, held the bank the words of Governor Mario Draghi at the European Parliament and the rebound in Asian markets. European stocks close sharply higher, following the record-breaking leap of the Tokyo Stock Exchange that has overshadowed the fears about the reopening of the Chinese Squares. Milan was up 3.19%, and, with the protagonists banks, it shows 17 thousand points. London was up 2%, Paris 3% and Frankfurt of 2.67%. Shanghai , closed during the last eight for the Chinese New Year, limiting losses to 0.63%, Shenzhen holds even and Hong Kong back 3%.

Without the influence of Wall Street stock prices, they took the words of Dragons to give more firmness to the markets, parties already rising. ECB President has confirmed that it will not require further capital to the banks, there will be no Basel 4 and if it should be necessary to March will be ready to intervene in the market. The work of the ECB must however be supported by central governments with more investment and lower taxes. In the morning the strength to markets had come from the East. The Nikkei closed up 7.16% and several major actions by Nomura to Panasonic, rising to double digits.

It is restricted, after the recent flare-ups, the spread between Bund and BTP. The yield spread between Italian and German peers trade at a ten-year duration 137 basis points. Also flexes the yield, which moves 1.6%. Bank of Italy released data on the public debt, which amounts to 2.169 billion at the end of 2015, an increase of 33 billion on the previous year. L ‘ is down slightly below the threshold of $ 1.11, after strong gains last week. The disappointing data on the Japanese GDP weigh on the yen super, which loses at 127.6 share on the common currency.

To heighten the phase of extreme market volatility, capable of heavy declines and subsequent rebounds were the news from the macroeconomic front of the Rising Sun, certainly not positive. To Exchange was a speculative and technical movement, after the worst week in seven years, closed at -11%. As mentioned, the data on the GDP of Japan registered a new downturn in the economy, falling by 0.4% in the period from October to December, with weak consumer spending despite putting expansionary policy implemented by the Japanese government in the last three years. In the whole 2015, GDP growth was limited to 0.4%. The surveys last quarter showed a 1.4% annual decline, more pronounced than the forecasts of analysts polled by the agency Bloomberg . The simultaneous decrease in consumption of 0.8%, which alone contribute to 60% of GDP, and lackluster wage growth do not allow the reforms of Prime Minister Shinzo Abe to achieve the objective of a rise in inflation to 2% and the final exit from the deflationary spiral that is gripping the world’s third largest economy for nearly two decades. In this sense, we have addressed the attention of the Central Bank of Japan, which has recently surprised everyone by moving rates on deposits in the negative; likely, at this point, that jump of the new planned VAT increase (April 2017) from 8 to 10%. Also declining exports (-0.9%) on weak demand as much from the US as from China.

Just the Beijing economy showed new signs of contraction in the trade, on which weighs the weakness demand both external and internal. In January, the Chinese exports are down 11.2% from the same month in 2015, for a value of 177.5 billion dollars. Imports are down by 18.8% trend to 114.2 billion dollars. The Chinese trade balance was so active 63.30000000000 dollars.

The Western macroeconomic agenda, in addition to the words of Draghi, reported that the trade surplus with the rest of the Eurozone the world amounted in 2015 to 246 billion, an increase compared to 184.3 billion in 2014. Wall Street and the US activities are stopped by the Presidents Day holiday. the US stock market is recovering from second consecutive week of declines, but the Friday’s session had been positive with the Dow Jones up by 2%.

to explain the rally was also the recovery of the oil , which currently reaches with WTI at around $ 30, while Iran prepares to make the first deliveries to European customers after the removal of sanctions. L ‘ Gold is down to $ 1203 after hitting 11 last February the $ 1263.48 an ounce, the highest since a year.

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