The event, which was waiting for the whole financial world since the late summer of this year, has come to pass. U.S. Federal Reserve announced the inclusion of the printing press. Amount infusion controller is 600 billion dollars, which he intends to spend on buying Treasury bonds for eight months. This news caused a massive revaluation of assets around the world. Commodities and stocks went up sharply, by updating the months of highs and the dollar, by contrast, began to decline. However, the effect of measures announced was short, and on Monday, November 8 pair euro / dollar was trading at around 1.396.
In this situation goods such as basic economics very well reflect the real value of currencies - after the crisis, it is quite another. If there has been an extraordinary rise in gold prices, this is a bubble, but if he jumped in the price of all commodities, this is currency devaluation. It will lead to inflation, which is what the Fed is seeking. It does not matter what currency to evaluate products - in yen, dollars or euros, as almost all the monetary authorities and the developed and developing countries are involved in foreign wars.
Thus, the announcement of a new printing of money, Ben Bernanke actually said that the U.S. economy will emerge from the crisis at the expense of creditors of this country, including China and Russia, as holders of Treasury government bonds. From a macroeconomic point of view it is - a natural process: the States in taking on this risk by purchasing U.S. bonds. Ugly the situation looks only from a moral point of view, because GDP per capita in the U.S. is 47 thousand dollars, whereas in Russia - 14,7 thousand dollars, and China - only 5.94 $ thousand
European stock indexes closed down a slight decline
Stock trading in Europe on Monday, November 8, the leading index ended lower against the backdrop of heightened concerns of investors away from debt problems of the eurozone countries. After strong growth last week in the European trading floors there was a correction. Euro on Monday fell sharply against the dollar, which held the growth data from the U.S. labor market.
The appreciated dollar raised commodity prices in foreign currency in connection with which shares of the Swiss mining company Xstrata plc. fell 1.44%, and British papers Anglo American PLC - on 2,43%. The stock price of the largest German energy company E. On AG dropped to 1.15% after announcing that the company is negotiating with a group of investors to sell the second largest distribution network in the UK for 5.6 billion dollars
After a prolonged decline in stock price during the past week due to malfunctions of engines of two planes of Australian airline Qantas Rolls-Royce Group plc. said that the problems relate only to Trent 900 engines installed in aircraft A380. On the London Stock Exchange shares rose almost at once by 3%.
French media group Lagardere ScA lost 2.2% of the shares, despite sales growth of almost 3% over the past 9 months. In its quarterly report, the group noted that the growth of advertising revenues would decline in the IV quarter of this year That is what has been a catalyst downside Lagardere.
Following the auction on November 8, 2010. Britain's FTSE 100 index fell 25.39 points (-0.43%) - to 5849.96 points, the German DAX - on 3.70 points (-0.05%) - to 6750.50 points, the French CAC 40 - by 3.03 points (-0.08%) - to 3913.70 points, the Amsterdam AEX fell by 0.21 points (-0.06%) and totaled 346.69 points. The Swiss SMI rose by 12.64 points (0.19%) - to 6600.36 points. Pan-European index of "blue chips" FTSEurofirst 300 during trading fell by 0.04% to 1,110.85 points.
The appreciated dollar raised commodity prices in foreign currency in connection with which shares of the Swiss mining company Xstrata plc. fell 1.44%, and British papers Anglo American PLC - on 2,43%. The stock price of the largest German energy company E. On AG dropped to 1.15% after announcing that the company is negotiating with a group of investors to sell the second largest distribution network in the UK for 5.6 billion dollars
After a prolonged decline in stock price during the past week due to malfunctions of engines of two planes of Australian airline Qantas Rolls-Royce Group plc. said that the problems relate only to Trent 900 engines installed in aircraft A380. On the London Stock Exchange shares rose almost at once by 3%.
French media group Lagardere ScA lost 2.2% of the shares, despite sales growth of almost 3% over the past 9 months. In its quarterly report, the group noted that the growth of advertising revenues would decline in the IV quarter of this year That is what has been a catalyst downside Lagardere.
Following the auction on November 8, 2010. Britain's FTSE 100 index fell 25.39 points (-0.43%) - to 5849.96 points, the German DAX - on 3.70 points (-0.05%) - to 6750.50 points, the French CAC 40 - by 3.03 points (-0.08%) - to 3913.70 points, the Amsterdam AEX fell by 0.21 points (-0.06%) and totaled 346.69 points. The Swiss SMI rose by 12.64 points (0.19%) - to 6600.36 points. Pan-European index of "blue chips" FTSEurofirst 300 during trading fell by 0.04% to 1,110.85 points.
U.S. market: The week began with sales
On Monday, November 8, "bulls" of the American stock market have decided to make a break after a rally the previous session. Recall, a surge of purchases prompted the announcement of details of the program of quantitative easing and a good Friday the data from the U.S. labor market. Indices updated two-year high, did not disappoint even lag behind S & P. However, with these events was interrupted and a weakening dollar, and on Monday the U.S. currency against the euro was trading at the beginning of November. This factor, in addition to a simple desire to record profits, was decisive for the dynamics of the market on Monday. The euro pressured and problems in Europe: Ireland looking for ways to combat the budget deficit and deal with such unpopular measures as increasing taxes and reducing government spending, renewed talk about the debt problems of Spain and Portugal. Trades in the U.S. on November 8 began a gap down during the day "bulls managed to repulse the only part of the morning's losses.
Following the auction on November 8, the Dow Jones fell by 37.24 points (-0.33%) - to 11,406.84 points, NASDAQ rose by 1.07 points (0.04%) - to 2580.05 points, S & P dropped to 2.6 points (-0.21%) - to 1223.25 points.
Weaker than the market as a whole looked like the banking sector. During Friday's session, he led the growth of the market. And now, when there was more or less suitable occasion for sales, investors rush to cut long positions because they do not see a compelling reason to continue the rally in the sector. Goldman Sachs Group Inc. fell to 1,09%, Wells Fargo & Co. - On 0,62%, Citigroup Inc. - On 1,16%, U.S. Bancorp - on 1,53%, The Bank of New York Mellon Corp. - On 0,35%, PNC Financial Services Group Inc. - By 1,3%, Morgan Stanley - to 0,26%, JPMorgan Chase & Co. - On 1,05%.
Strengthening of the dollar triggered a fall in prices for industrial metals, so the steel sector on Nov. 8 and did not shine. Lowering the cost of finished the session paper Southern Copper Corp. (-0,3%), Arcelor Mittal (-0,01%), Nucor Corp. (-0,3%), United States Steel Corp. (-1.65%) And Alcoa Inc. (-0.28%). Recommendation on the shares of the latter with "buy" to "neutral" due to the lack of significant growth potential, on Monday reviewed by experts Davenport.
Monday started a two-day meeting on the case of an environmental disaster in the Gulf of Mexico. It is already known that an independent commission under the administration of U.S. president "agreed on 90%" with the findings of internal investigation, the British BP on the causes and circumstances of the oil spill. Fred Bartleet head of the commission said that the commission found no evidence to support the conventional version, according to which managers and employees of BP, responsible for decisions on the blown up drilling rig Deepwater, sacrificed security in favor of political interests. However, investors seem to be different expectations about the outcome of the meeting, since BP 8 November became cheaper - on 1,28%, and Halliburton Co. and Transocean Ltd., on which the British giant has shifted the blame, rose in price by 4.73% and 4.85% respectively. The worst partner BP's exploding platform - Deepwater Horizon Anadarko Petroleum Corp., Its market capitalization has fallen to 4.29%.
Following the auction on November 8, the Dow Jones fell by 37.24 points (-0.33%) - to 11,406.84 points, NASDAQ rose by 1.07 points (0.04%) - to 2580.05 points, S & P dropped to 2.6 points (-0.21%) - to 1223.25 points.
Weaker than the market as a whole looked like the banking sector. During Friday's session, he led the growth of the market. And now, when there was more or less suitable occasion for sales, investors rush to cut long positions because they do not see a compelling reason to continue the rally in the sector. Goldman Sachs Group Inc. fell to 1,09%, Wells Fargo & Co. - On 0,62%, Citigroup Inc. - On 1,16%, U.S. Bancorp - on 1,53%, The Bank of New York Mellon Corp. - On 0,35%, PNC Financial Services Group Inc. - By 1,3%, Morgan Stanley - to 0,26%, JPMorgan Chase & Co. - On 1,05%.
Strengthening of the dollar triggered a fall in prices for industrial metals, so the steel sector on Nov. 8 and did not shine. Lowering the cost of finished the session paper Southern Copper Corp. (-0,3%), Arcelor Mittal (-0,01%), Nucor Corp. (-0,3%), United States Steel Corp. (-1.65%) And Alcoa Inc. (-0.28%). Recommendation on the shares of the latter with "buy" to "neutral" due to the lack of significant growth potential, on Monday reviewed by experts Davenport.
Monday started a two-day meeting on the case of an environmental disaster in the Gulf of Mexico. It is already known that an independent commission under the administration of U.S. president "agreed on 90%" with the findings of internal investigation, the British BP on the causes and circumstances of the oil spill. Fred Bartleet head of the commission said that the commission found no evidence to support the conventional version, according to which managers and employees of BP, responsible for decisions on the blown up drilling rig Deepwater, sacrificed security in favor of political interests. However, investors seem to be different expectations about the outcome of the meeting, since BP 8 November became cheaper - on 1,28%, and Halliburton Co. and Transocean Ltd., on which the British giant has shifted the blame, rose in price by 4.73% and 4.85% respectively. The worst partner BP's exploding platform - Deepwater Horizon Anadarko Petroleum Corp., Its market capitalization has fallen to 4.29%.
Forex: Dollar may markedly backwards
For the current week have just two significant events for the U.S. economy, which will determine the mood of the markets in the coming months. Tuesday, November 2 elections to the U.S. Congress. Democrats managed to retain a majority in the Senate. However, a sustainable position of the Party Barack Obama hard. "I call the current situation in the U.S. economy of fiscal disaster. The budget deficit over the next decade will be a trillion dollars. It is clear that this quantity is impossibly high for the economy. At the same time we are in a political impasse: the Republicans veto any attempt to raise taxes, Democrats oppose any reduction in government spending. After the November elections, Republicans will increase their influence, and we get all incompetent government. All this is very bad for the economy and increases the probability of the second wave of recession. Now I appreciate his chances about 35-40%, "- said the chairman of Roubini Global Economics Nouriel Roubini.
Democratic victory stimulate the weakening U.S. currency. On Wednesday, 3 November, the euro is worth 1.403 U.S. dollars, but the strong motions until you'd expect. In front of no less important event for the American currency - the announcement of the results of U.S. Fed meeting, and it causes a lot of debate among economists, analysts and financiers.
"Remember, what is the mandate of the Federal Reserve System. It is to maintain full employment and price stability. We see clear signs of deflationary pressures in the U.S. economy and the inflation rate is clearly below the target range. And at the same time, we see the economy, working explicitly below its potential, and very high unemployment. In these circumstances it is easy to understand the position of the Federal Reserve: Using quantitative easing, the regulator is trying to kick-start the economy and deal with the problem of unemployment, which is also so much influence on the political situation before the elections, "- said Chairman of the Board Directors of Cerberus Capital Management, former U.S. Treasury Secretary John Snow. These votes are already known - from the Fed again "free hand". Let's see what will be the Fed's generosity, cornered macroeconomic instability.
Democratic victory stimulate the weakening U.S. currency. On Wednesday, 3 November, the euro is worth 1.403 U.S. dollars, but the strong motions until you'd expect. In front of no less important event for the American currency - the announcement of the results of U.S. Fed meeting, and it causes a lot of debate among economists, analysts and financiers.
"Remember, what is the mandate of the Federal Reserve System. It is to maintain full employment and price stability. We see clear signs of deflationary pressures in the U.S. economy and the inflation rate is clearly below the target range. And at the same time, we see the economy, working explicitly below its potential, and very high unemployment. In these circumstances it is easy to understand the position of the Federal Reserve: Using quantitative easing, the regulator is trying to kick-start the economy and deal with the problem of unemployment, which is also so much influence on the political situation before the elections, "- said Chairman of the Board Directors of Cerberus Capital Management, former U.S. Treasury Secretary John Snow. These votes are already known - from the Fed again "free hand". Let's see what will be the Fed's generosity, cornered macroeconomic instability.
U.S. crude stocks, from 23 to 29 October rose by 1.95 million barrels.
Commercial crude oil inventories in the U.S. for the week from 23 to 29 October 2010. increased by 1.95 million barrels. and amounted to 368.16 million barrels., the report said U.S. Department of Energy (US Department of Energy). Analysts polled by Reuters, predicted that oil reserves will grow by 1.2 million barrels.
According to the report of the department, as at 23 October 2010. reserves of crude oil and derivatives of energy characterized by the following weekly changes:
- Crude Oil: reserves grew by 1.95 million barrels. - Up to 368.16 million barrels. That the higher figure for the same date last year by 9,6%;
- Petrol: stocks fell by 2.7 million barrels. and amounted to 212.3 million barrels., which exceeds the same period in 2009. by 1,9%;
- Heavy distillates: stocks fell by 3.6 million barrels. - Up to 164.9 million barrels., Which is lower than for the same date last year by 1,5%.
Stocks Strategic Petroleum Reserve for the reporting week does not change and amounted to 726.6 million barrels. Own oil production in the U.S. for the week increased from 5.540 million to 5.593 million barrels per day, oil supply to refineries has decreased from 14.138 million to 13.905 million barrels per day. Net crude oil imports dropped from 9.463 million to 8.578 million barrels per day.
According to the report of the department, as at 23 October 2010. reserves of crude oil and derivatives of energy characterized by the following weekly changes:
- Crude Oil: reserves grew by 1.95 million barrels. - Up to 368.16 million barrels. That the higher figure for the same date last year by 9,6%;
- Petrol: stocks fell by 2.7 million barrels. and amounted to 212.3 million barrels., which exceeds the same period in 2009. by 1,9%;
- Heavy distillates: stocks fell by 3.6 million barrels. - Up to 164.9 million barrels., Which is lower than for the same date last year by 1,5%.
Stocks Strategic Petroleum Reserve for the reporting week does not change and amounted to 726.6 million barrels. Own oil production in the U.S. for the week increased from 5.540 million to 5.593 million barrels per day, oil supply to refineries has decreased from 14.138 million to 13.905 million barrels per day. Net crude oil imports dropped from 9.463 million to 8.578 million barrels per day.
The index of business activity in the U.S. in October rose by 1.1 points
The index of business activity in the U.S. services in October 2010. increased compared with the previous month to 1.1 points and made 54.3 points, said in a Nov. 3 report of the American Institute for Supply Management (ISM). Analysts had forecast that the index for October 2010. of 54 points.
In September of 2010. the index was 53.2 points.
The value of this index is above 50 points is an indicator of growth in the services sector, the value is below 50 points indicates a slowdown in the sector.
In September of 2010. the index was 53.2 points.
The value of this index is above 50 points is an indicator of growth in the services sector, the value is below 50 points indicates a slowdown in the sector.
Trading in Europe closed down the leading index
Stock trading in Europe on Wednesday, November 3, 2010., The leading index ended lower on news from the U.S.. The leading role played by the mood of investors, who feared that the U.S. Federal Reserve is not enough help the U.S. economy. The market expected the Fed will announce additional financial injections into the American economy.
By 9,5% cheaper stocks Cobham Plc., Manufacturer of telecommunications equipment. Investors are not happy about the message that the company expects lower earnings this year because of ongoing transfers of contracts with the U.S. and the general instability in the market.
The situation is similar around the quotations of Norwegian oil company Statoil ASA. They fell 5.4% after the company reported a decline forecast by production volume in 2010.
In the "minus" ended trading day and the second largest in the UK retail chain selling clothing Next Plc. The financial report of the company showed that the losses were even more calculations analysts. Against this backdrop, shares lost 2.2% in price.
Following the auction on November 3, 2010. Britain's FTSE 100 index fell 8.46 points (-0.15%) - to 5748.97 points, the German DAX fell 36.51 points (-0.55%) - up to 6617.8 points, the French CAC 40 dropped by 22.78 points (-0.59%) and closed at 3,842.94 points, the Swiss SMI "dipped" to 28.51 points (-0.44%), amounting to 6,512.99 points, the Amsterdam AEX fell by 2 , 97 points (-0.87%) - up 339.05 points. Pan-European index of "blue chips" FTSEurofirst 300 during trading fell by 0.43% to 1,088.92 points.
By 9,5% cheaper stocks Cobham Plc., Manufacturer of telecommunications equipment. Investors are not happy about the message that the company expects lower earnings this year because of ongoing transfers of contracts with the U.S. and the general instability in the market.
The situation is similar around the quotations of Norwegian oil company Statoil ASA. They fell 5.4% after the company reported a decline forecast by production volume in 2010.
In the "minus" ended trading day and the second largest in the UK retail chain selling clothing Next Plc. The financial report of the company showed that the losses were even more calculations analysts. Against this backdrop, shares lost 2.2% in price.
Following the auction on November 3, 2010. Britain's FTSE 100 index fell 8.46 points (-0.15%) - to 5748.97 points, the German DAX fell 36.51 points (-0.55%) - up to 6617.8 points, the French CAC 40 dropped by 22.78 points (-0.59%) and closed at 3,842.94 points, the Swiss SMI "dipped" to 28.51 points (-0.44%), amounting to 6,512.99 points, the Amsterdam AEX fell by 2 , 97 points (-0.87%) - up 339.05 points. Pan-European index of "blue chips" FTSEurofirst 300 during trading fell by 0.43% to 1,088.92 points.
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