MILAN – 11:30. The start of the Quantitative easing easing of the European Central Bank, with the massive purchase of securities largely on the secondary market, continues to compress yield debt . “The reaction of the markets shows that it works,” claims the governor Mario Draghi at a conference in Frankfurt. Almost every year bonds Eurozone are experiencing appreciation, especially in longer-term maturities, which means less supply of return to investors. In the case of the Italian BTP, the yield of the ten-year maturity has broken down the threshold of 1.2%, reaching 1.19% in area after the new lows ever. The spread to the German Bund remained stable in area 95 basis points below that of the Spanish Bonos and German bonds, because the drop in yields is generalized and this does not move that much distance between individual countries . The Treasury still captures the dividend of the situation: he sold all 6.5 billion of the new Bot to 12 months, expiring in March 2016, with a rate dropped to 0.079%, a new record low.
What lowering yields is only one of the channels identified by Dragons for the transmission of monetary policy and have an improvement in credit conditions. But even the “channel of the exchange rate”, ie the depreciation of the euro due to the growth of liquidity and the reduction of interest rates, you are dispegando in its entire force. The single currency is going to close the quarter’s largest decline in its history, say the data Bloomberg , with direct benefits to exporting companies that earn competitiveness. The euro has lost about 11.6% year to date, against the dollar, putting behind the decline of 10.6% in 2008. According to Sean Callow, currency strategist at Westpac Banking Industry Corp. of Sydney, the fact that the weakening is motivated by reasons of economic fundamentals but also by divergent intentions of central banks, makes it unlikely a change of course in the short term. Even today, the ‘ € in the markets of the Old Continent is falling to the lowest since January 2003: share falls below $ 1.06. The situation has repercussions for other neighboring countries on the eurozone, like Denmark and Sweden, where he tries to keep low the currency with enormous efforts of the central banks. Just in Denmark, however, have raised official interest rates below zero is likely to re-ignite a housing bubble: a side effect of making “cheap” on borrowing money.
The equity markets remain rather volatile. Those Europeans are coming, in many cases, from galloping prolonged and then in the operating rooms are taken profit taking. Remains high then the voltage on the case greek : now start negotiations on the reform plan between the inspectors of former Troika (EU, ECB and IMF) and the counterparties Athenians to unlock the tranche for over 7 billion international loans. Milan Stock look for the rebound, accelerating after the words of Dragons: 1.45% salt. Well the other EU: Paris recovers 1.8%, Frankfurt 1.7% salt (by updating the highs) and London 0.4%. Remains weak Athens , which file half a percentage point. In the turmoil of the TLC sector, with Telecom in light: back in fashion the merger between Wind and 3, while around the telephone company will develop projects for the construction of the broadband network. On another hot dossier, the Tender Offer of Ei Towers on Rai Way, the president Consob, Giuseppe Vegas, said the offer prospectus has still not arrived to the Authority.
The macroeconomic agenda not particularly rich: in January, the industrial production in the UK was down by 0.1% per month, up 1.3% on year. In France , in the fourth quarter of 2014 remained stable employment in non-agricultural sectors, with a drop of just 1,300 seats after -59mila the third quarter. The US will come then the data on mortgage applications and weekly oil inventories. But it is mainly on the publication of the stress test on the banks of the Federal Reserve that focus market expectations.
More important disclosures arrived in the morning from the East. China is showing signs of “slowing down”: the retail sales China in the first two months of 2015 grew by 10.7% on an annual basis for a value of 779 billion, compared to + 12% in 2014. Other signs of weakness from the Industrial production : in January-February grew at a slower pace and stood at 6.8% of year against 7.9% in December. In Japan , machinery orders in the private sector are arrears of 1.7% per month, but they did better braking of expectation of 4.1%. This is also why the Tokyo Stock Exchange , pushed by the weakness of the yen, closed slightly higher after early weakness in the wake of Wall Street: the Nikkei index of leading securities ended the day gaining the 0.31%.
As mentioned, Wall Street yesterday filed a sitting down sharply and the Dow Jones and S & amp; P 500 have resulted in a negative balance from the beginning year. Only a week before the two indices had reached a new record and the Nasdaq had regained altitude 5,000 points. Remains the fear for the approach of a Fed rate hike, justified by the economic strength the US, but that would gradually end the booze liquidity on the market: the Dow sold its 1.9%, the S & amp; P 500 has lost ’1.7%, the Nasdaq has left on the ground 1.7%.
For the raw materials recorded growth of’ Gold in the Asian markets. The metal for immediate delivery rises by 0.3% to $ 1,165 an ounce and dates back well from the lows of the past 3 months. The price of the oil opens upward. Asian markets futures on Light crude 66 cents to $ 48.95 and Brent rising 29 cents to $ 56.68 a barrel.
No comments:
Post a Comment