MILAN – Hours 14:15. Listings fly after massive intervention by the ECB, which has cut rates and extended the Quantitative easing program. Measures beyond were’nt leading the euro to weaken against the dollar. Milan , after a weak morning, splashing up 4% with the banks to tow the sprint. Frankfurt clicks to + 2.5%, Paris marks + 3,3% and London stood irresolute lingered longer at +1%.
the European central Bank surprised, therefore, the expectations and cut all the reference rates of the cost of money, while the purchasing program of securities of state also rises by 20 billion per month, reaching € 80 billion. In this way the money that banks park in the vaults of the Central Bank will have an even more negative return of what they already have, a kind of tax on liquidity which should stimulate even more banks to direct elsewhere (hopefully in companies and investments) the money they collect from their customers or who borrow from other banks to finance their business. But to push the markets is the new Tltro program, liquidity auctions that will allow banks to raise money from the ECB at negative rates. The securities of the banking and financial sector in many fly and Milan are suspended for excessive upward.
In short, whereas the same BoJ has brought negative rates, that China is cutting banks’ reserves stimulate the economy and that the central Bank of New Zealand has brought rates to a record low, it can be concluded that the orientation of Governors around the world remains largely accommodating. In Germany, however, the protest against the possible moves of the President was already assembled. The Eurotower decisions are felt immediately on the euro, that share drops below 1.09 against the dollar and 123.8 against the yen area. Sharply falling even the spread between Bund and BTP, which is reduced below 115 basis points with the Italian ten-year offering less than 1.4% on the secondary market. The Treasury has placed all 6 billion euro of Bot to a year in the face of an application which reached 9.95 billion. The yield fell to -0.068% to -0.032% auction in February. Rising demand with a past coverage ratio from 1.61 to 1.66.
In the morning the Tokyo Stock Exchange closed the trading with a gain of 1, 26%, touching a gain of over 200 points to 16,852.35 level, thanks to the rise in crude oil prices and purchases on export-related stocks. Other than the orientation of Shanghai , which closed down 2%. The yen continues the phase of weakening against the dollar at 113.720 share: the single currency is that which fell more last month, just ahead of moves accommodating Eurotower.
Positive data on ‘ Chinese inflation , which gathers pace in February, rising to 2.3% yoy (from 1.8% in January), driven by food prices (+7, 3% from + 4.1%). The data, provided by the Chinese National Statistical Office, is higher than the market estimates (around 1.8%), but ranks below the 3% target set by the government for 2016, held to be problematic threshold for the purposes of spending on the program to support the economy. The index of producer prices has had a contraction for the 48th month in a row, to + 4.9% against + 5.3% from January and 5.9% in December. In Europe there is the slight contraction of the trade surplus of Germany that, in January, according to seasonally adjusted data, stood at 18.8 billion, below expectations which were for a surplus over 19 billion weighs the slowdown of the outlet channels in emerging countries. Declining exports, with a -0.5% not reckoned from the forecasts. Well, instead, the data of the Industrial production in France , which rose 1.3% in January. Istat, finally confirmed the decline in unemployment in 2015, the first for seven years.
After the rally by almost five percentage points of the vigil, the prices for oil are slightly down on the after hours market in New York: the contracts on WTI crude oil for April deadline yield 5 cents to $ 38.24 a barrel; Brent crude yields 17 cents to $ 40.19. The wait for the meeting of the board of the ECB with the possibility of a cut in deposit rates continues to drive down the prices of ‘ Gold : bullion for immediate delivery yields 0.3% and changing hands at $ 1,251 an ounce.
Closing rising, yesterday, for the Stock Exchange Wall Street in the wake of the positive trend in European markets and consolidation the price of oil. At the end of session, the Dow Jones gained 0.21% to 17,000 points, the Nasdaq technological index surged 0.55% to 4,674 and the S & amp; P 500 + 0.51% to 1,989 points. The US macro agenda for today includes the trend of requests for unemployment benefits.
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