The Dow gained 0.77% to the debt problem solving (Dubai and Citi)
| Date: December 14, 2009 | Source: AlertNet |
| Category: Bags and Markets | |
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The bad taste left among investors last week, the worst since July in terms of profitability, Monday dissipated by the agreement reached by Citi to repay the aid and Abu Dhabi, which will take a cable to neighboring Dubai. The absence of important economic data also contributed to the further relaxation of the markets and the Dow were dismissed with an increase of 0.77% to 11,705 points. Texas Oil fell below $ 70 and the euro / dollar at 1.46.
Two good news gave new impetus to the indices: the agreement reached by Citi to repay 20,000 million dollars of TARP and the announcement of Abu Dhabi, the richest of the United Arab Emirates (UAE) that will help the neighboring emirate Dubai with the injection of 10,000 million dollars, part of which will assist the company Dubai World can meet impending payments of its debt maturing for a total of 26,000 million dollars.
And is that more and more convinced that the debt problems of some states are not contagious. "The deterioration of debt ratios of the states is a limitation that the markets and the economy will have to live for the next 2 years (at least), but not a systemic problem that breaks the global economic recovery or block the progressive advance of the bags, "claimed from Bankinter.
"In a context of revisions to debt rating of the countries to rising deficits and debt, do not discount that is likely to continue the worst relative performance of the stock economies that are in the crosshairs of agencies rating. However, we believe that there is sufficient support factors (monetary stimulus, economic recovery and corporate profits, reduced exposure of investors to bag) to ensure respect for the low range of our short-term fluctuation: 11.200/12.100 of Ibex ", analysts expressed Renta 4.
This led to greater calm of the stock rallies above half a percentage point. The Dow gained 0.77%, the FTSE rose 0.83%, ACC rose 0.70% and the DAX, 0.59%. The European benchmark was up 0.53% at the end of Madrid.
The five largest in the Spanish stock market closed in green. Telefonica rose the least, did 0.15%, behind Iberdrola, with an increase of 0.86%. Santander, which will launch a delisting tender offer for 9.4% of its Puerto Rican subsidiary Santander Bancorp does not control, gained 1.34% and BBVA, 1.27%. Repsol, which Barclays raised its price target to 22 euros, gained 1.41%.
Sacyr-Vallehermoso, one of the worst values of the last days, this time was the most added, 4.02%, and behind, Abengoa, which rose 2.5%. A selective tail but little descent were Banesto (-0.09%), Gamesa (-0.79%) and ArcelorMittal (-0.63%). The latter company announced that another 10,000 jobs abolished in 2010.
In the rest of the market, highlighted by winning Sniace 9.42%. Cementos Portland recovered and Avanzit 6.61%, 5.08%. On the opposite side, and Reyal Urbis Inbesós subtracted more than 3%. Meanwhile in Europe, the financial sector experienced a fruitful session, as Deutsche Bank was surprised with a rebound of 3.43%, noting it expects gross operating profit of 10,000 million euros in 2011. ING gained 2.87% and AXA 2.37%. The car had a mixed evolution, since Volkswagen fell 0.82%, while its rival Daimler rose 2.25%.
THE euro, barely changed, folded to 1.46 against the dollar. Brent crude ended flat and traded at $ 72.08 a barrel, just as the West Texas that moved in the area of $ 69.89.
