MILAN – 11:15. The official start of the Quantitative easing by the ECB, which until September 2016 will inject 60 billion euro in the markets with the aim of relaunching Europe with the fall in interest rates and the recovery of exports, coincides with the first profit taking of Bags that in recent weeks had risen to their highs (especially London and Frankfurt), particularly in view of the operation of Frankfurt. Investors therefore seek to monetize the rally of the last sessions, also in anticipation of what could happen in the United States. The latest data on employment showed showed an economy healthy and solid recovery: why markets fear that the Fed may decide to start the rate hike already in June.
The infographic . How does the bazooka of Dragons.
Mario Draghi has meanwhile started to rake titles on the market and, according to some traders reported in Bloomberg , he started shopping the German Bund and later to other instruments including those Italians . On the other hand, considering that the purchases are made based on the participation of national banks nell’Eurotower, and that the Bundesbank has the largest share, just the Bund will be the most widely purchased by the ECB (which can go to put in the portfolio of ‘ Eurosystem instruments with negative returns up to -0.2%). For the moment, however, can not get any support in Athens: the greek government must first enter into the agreement with partners and then repay the loans maturing in the summer because the ECB can intervene on its public debt, which has rating ‘junk’ and is already present in excessive amounts in the belly to the Central Bank.
The most important effects of Qe are seen on the yield of government bonds and the decline in the spread: for this attention – in Italian – is addressed in the upcoming auction of Bot and BTP agenda Wednesday and Thursday. Fueling the concern of markets contributes however the Greek crisis: today meets the Eurogroup, but has already rejected the proposals of Athens by announcing that in March will not receive a loan.
Just the Athens Stock Exchange is the one that suffers most: slips of more than three percentage points while the yield on ten-year bonds comes dangerously close to 10%. The spread between BTP and German Bund area is stable at 93 basis points with Italian securities that make less delll’1,3%. A Milan , Piazza Affari opens in red then back to positive 0.1%. Weak the other markets of the Old Continent: London and Paris yield 0.7%, Frankfurt yields 0.5%. Still weak the single European currency that remains to the lowest since 2003 against the dollar touched Friday: l ‘ € changed hands at 1.08; the yen to 131.3.
From the macroeconomic point of view, today’s session is rather stingy of major events ( calendar ): in Germany, there was a slight decline in the surplus of the German trade balance in January amounted to 19.7 billion from 21.39 billion in December. The balance is the result of exports down 2.1% on the month and imports fell by 0.3 percent.
Japan , meanwhile, is out of the recession technique in the October-December quarter 2014, but at a slower pace compared to the preliminary data: GDP grows by 0.4% on a cyclical basis and 1.5% on an annual basis compared to respectively 0.6% and 2.2% announced by the Cabinet on 16 February. The Japanese economy recorded in January a current account surplus for the seventh month in a row, amounting to 61.4 billion yen (470 million euro), supported by the increase in exports and the weakening of the yen. It is, according to data from the Ministry of Finance, a sharp turnaround on the “red” of 1,590 billion yen in January 2014: thanks to exports up 15.3% and import down 8 , 9%, the trade deficit falls in 12 months from 1.54 trillion to 864.2 billion yen.
In the morning the Tokyo Stock Exchange has finished exchanges -0, 95%, reflecting the disappointing given the GDP and the US occupation in February that Friday has certified the creation of 295,000 jobs, strengthening the hypothesis of a next rate hike. The Nikkei index, the day on which the Qe by the ECB and the turmoil related to the rescue of Greece, gives 180.32 points and stood at 18790.55 share.
Friday night, Wall Street has closed the session near the lows of the day, the fault of the fears of a rise in interest rates by the Federal Reserve, perhaps as early as June. To turn them back on was the US employment report, in February, much better estimates. And so the indices have filed the second straight week of declines. The focus now shifts to the Fed meeting scheduled the next 17 and 18 March. The statement that will be distributed may not contain the word “patient” refers to rates, a sign that the close approaches. Last month, Governor Janet Yellen had tried to reassure by saying that the elimination of that word – used in the last two meetings, those of December and January – not necessarily imply a close upcoming Friday but traders have thought the worst. The Dow Jones has sold its 1.54%, the S & amp; P 500 lost 1.42%, while the Nasdaq has left on the ground for 1.11%.
In terms of materials first quotations oil are down on the market after hour in New York with contracts on WTI crude maturing in April losing 29 cents to $ 49.32 a barrel while Brent falls by 52 cents to $ 59.21. Light rise in the prices of ‘ Gold after the sharp fall last Friday who had brought up under $ 1,160 an ounce: bullion for immediate delivery gained 0.4% and is trading at $ 1,170 an ounce.
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