| Sign in to participate and enjoy the experience ... | Register | Login |
| Date: October 19, 2010 | Source: AlertNet |
Go ahead and rate this post 
Loading ... China has moved tab in the currency war, even if it was with a modest rise in interest rates (0.25 points to 5.56%) . The increase represents an attempt by the Chinese authorities to control inflation and reorder their own economic growth. The move could weaken the dollar against the yuan and China decide to allow the most favorable exchange rate between the dollar and the euro.
The Chinese central bank has raised rates for the first time in nearly three years, a move that has surprised the market, at least in the fact of having done so quickly, since, as noted by Marian Fernandez, head of strategy Inversis Bank "the tendency was suspected that it would produce, after having recorded the monetary aggregates and real estate prices over the schedule." After the surprise move could be some data on GDP and inflation will be announced this week that higher than expected.
The rate hike has been taken by surprise to the markets, which have reacted to the floor. The bags, oil and gold fell after the announcement by the Chinese central bank. At the same time, the dollar rose and acted as a refuge by the tightening of monetary policy of the Asian giant.
"Externally (is) a message clear to the international authorities on the relative stability of the yuan, "says a recent Citigroup report, adding that can accentuate the rise of the yuan. However, Citi also clarifies that the rate increase is too small to rise to great changes and disturbances. Among other things, debt sales are "light" and the situation remains "unchanged in the European country risk." Meanwhile, Marian Fernandez is skeptical about the yuan as the currency is tapped, "out of a free float."
By contrast, Alexis Ortega, managing partner of Finagentes says that "the yuan should be strengthened. This is a continuation of an ongoing process of "depreciation of the dollar, especially against the yuan." Thus, the Chinese authorities "accept" a weaker dollar against the yuan, but "decide" the exchange rate dollar / euro European currency, according to Ortega, it should not fall below $ 1.35.
"The medium-term passes a falling dollar and a cast of his fall between major currencies (euro, yuan, yen)," said Ortega. "The euro will have to bear the cost." With less intervention of the authorities, "the market more flexible is the euro". In addition, China has been buying European debt, according to the expert Finagentes, which would explain the improvement of the bonds of some countries such as Ireland, despite having suffered downgrades.
In this sense, the euro currency has been the most vulnerable among the major world currencies. In the current scenario of currency war, the EU has remained on the sidelines. As a result, the euro has appreciated against other currencies, causing a detrimental effect on exports from the Old Continent.
From recent months, China keeps its currency artificially low, encouraging exports and hurting the trade balance of countries like the U.S. and Japan have launched a counter protectionist passing through the devaluation of their currencies. Pressures on China resulted in small revaluation of its currency this summer, something judged as insufficient by the United States.
Control of inflation and growth reordering
But the rise in rates has an obvious interpretation in internal key. Although the Chinese authorities had declared their confidence in controlling inflation, the next data, which will be known on Thursday, may yield a figure higher than expected. In August, China's annual inflation was 3.5% and analysts expect an increase to 3.6% in September.
Meanwhile, China's GDP grew by 10.3% in the second quarter. Data for the third quarter, also published this week, may show signs of overheating of the economy that contribute to a rise in prices.
In this sense, the measure of the Chinese authorities would seek to "avoid asset bubbles," says Marian Fernandez. It would also be "adjusting their growth," so far focused on external demand, with a very positive trade balance result of a relatively low yuan. In this sense, the rise in interest rates is also aimed at domestic demand and should encourage the return of investors to the country.
| Date: June 5, 2010 | Source: Sources |
Go ahead and rate this post Loading ... The fragile financial situation of Hungary, alarm bells ringing does not rule out another crisis to the Greek. Problems of Hungary raised the risk of investing in Spain, the differential with the long-term German debt approached 200 basis points - and the Spanish bond yields exceeded 4.5% at closing.
The collapse of the value of the euro to $ 1.2, its lowest level in five years, and the fall of Wall Street by the poor reception given to U.S. unemployment data May encouraged the punishment suffered yesterday in the Spanish stock market a very black day, driving down the Dow to its lowest level in 12 months down to 8,923 points with a 5.32% weekly.
A renewed fears of a European debacle did not help the reduction of recommendation from HSBC for the stock on the continent.
One must go back to May 2009 to see the Ibex 35 below 9,000 points. Gone is the brilliant recovery experienced by the Spanish stock market in the second half he pulled himself to 12,000.
| Date: March 22, 2009 | Source: Economic @ 21 |
Go ahead and rate this post Loading ... REFERENCES
EURIBOR
On 5 March, the ECB announced further rate cuts in the eurozone to 1.5%, though it seems that in the short term there will be further cuts as his last words suggests, this makes the descents of the Euribor increasingly less deep, meeting ground close to it.
In the week we correspondel Euribor hits new record low, closing the week at 1.87%, down slightly from 1.92% last week in reference to a year. In all likelihood, March is the first history month Euribor to close below 2% and close to 1.90% ..
The citizen review mortgaged means that its economy will soon get a break after noting strong sales in your mortgage that can be achieved and in many cases exceed 300 euros on the revision of a year ago.
INFLATION
The Index of Consumer Prices (HICP) or Harmonized Inflation (measured in the same way in all countries of the Euro zone), in Spain fell in February tenth , to put the annual rate of 0.7% since marked 0.8% in January, thus continuing the path of moderation in prices that began in July 2008 as the leading indicator developed by the National Statistics Institute (INE).
It will be a new low since June 1969 confirmed the definitive national data of inflation to be published on 12 March.
BRENT AND TEXAS
Week of strong rises in oil prices on both sides of the Atlantic.
Meanwhile, a barrel of Brent for delivery in April goes up to $ 51.40 per barrel, representing an appreciation of 15% from the $ 44.71 weekly for the previous week.
Its counterpart, the barrel of West Texas Intermediate for April delivery also makes a similar behavior after closing at $ 52.02 weekly per barrel, when just last week at $ 45.73.
For details of the listing click here .
EURO / DOLLAR
Last week we attended and recovery of the Euro against the Dollar, but this week seems to take hold this upward trend, after trading $ 1.35 per euro, a rise in the euro / dollar 4.6%, mainly due to the less aversion to risky assets in the U.S. to stock up, as well as positive statements by the Fed to encourage exchanges.
Other changes of exchange here .
BAG
Stock markets around the world continue with the recovery trend that began last week, following the improvement of health of the banking sector.
The IBEX 35 recovered positions and closed the week at 7,710 points, up to 4% next week. Dow Jones also manages to maintain a positive balance the week closing at 7278.38 points the, albeit with a differential of less than 1% due primarily to return to the red of the last day of the week, probably on profit-taking day.
However, do not let your guard down because many experts believe that, although it seems that the worst of the banking sector is already happening, the second wave of the crisis is yet to come, and it is caused by the fall in production industry and the sharp increase in unemployment generated in the first phase.
Optimists believe that in late 2009 and early 2010 we will begin to feel symptoms of global improvement, although the pessimists believe that the crisis will not begin to subside until at least 2012.
| Date: March 14, 2009 | Source: Economic @ 21 |
Go ahead and rate this post Loading ... REFERENCES
EURIBOR
On 5 March, the ECB announced further rate cuts in the eurozone to 1.5%, leaving the door open to further cuts in the future ..
For its part, the Euribor reached lows that marked the ground breaking in March 2004, closing the week at 1.923% in reference to a year. In all likelihood, March is the first history month Euribor to close below 2% and probably checking monthly lows.
The citizen review mortgaged means that its economy will soon get a breather after rebate on your mortgage note you can reach and exceed in many cases compared to 300 euros a year earlier review.
INFLATION
The Index of Consumer Prices (HICP) or Harmonized Inflation (measured in the same way in all countries of the Euro zone), in Spain fell in February tenth , to put the annual rate of 0.7% since marked 0.8% in January, thus continuing the path of moderation in prices that began in July 2008 as the leading indicator developed by the National Statistics Institute (INE).
It will be a new low since June 1969 confirmed the definitive national data of inflation to be published on 12 March.
BRENT AND TEXAS
A barrel of Brent for April delivery remains with weekly closing levels similar to the previous trading day at $ 44.71 a barrel compared to $ 44.80 per barrel which closed the previous week.
Its counterpart, the barrel of West Texas Intermediate for April delivery also maintains similar levels to last week, although over a week has come to touch the $ 48, finally closing at $ 45.73.
For details of the listing click here .
EURO / DOLLAR
It seems that the Euro regains strength and evaluated against the dollar, reaching a change of $ 1.29 per euro traded, probably due to a lower aversion to risky assets in the U.S. before a rising share price and the publication of financial figures better than expected.
Other changes of exchange here .
BAG
European and American markets have seen this, a week of hope and return of money from investors, who seem to wonder if you have already touched ground. The better economic figures than expected especially in the financial sector have enabled the major indices make a recovery week on falls in the preceding weeks.
In turn, the IBEX 35 (main benchmark of the Spanish market) back 7.07%, the biggest gain of the year (increase not seen since 4 months), recapturing the 7427.8 points after hitting a ground in the same week on 6,800 points.
The highest increases of the week the head of the banking sector by improving economic news which predict that the worst for this sector has already been passed. In any case, investors remain cautious until we see how the sector begins to consolidate gains.
The Dow Jones also does a weekly gain of 9% rise in most years, reaching 7223.98 points.
| Date: March 7, 2009 | Source: Economic @ 21 |
Go ahead and rate this post Loading ... 
REFERENCES
EURIBOR
On 5 March, the ECB announced further rate cuts in the eurozone to 1.5%, leaving the door open to further cuts in the future ..
For its part, the Euribor reached lows that marked the ground breaking in March 2004, closing the week at 1.957% in reference to a year. In all likelihood, March is the first history month Euribor to close below 2%.
The Spanish means check mortgaged its economy will soon get a breather after rebate on your mortgage note you can reach and exceed in many cases compared to 300 euros a year earlier review.
INFLATION
The Index of Consumer Prices (HICP) or Harmonized Inflation (measured in the same way in all countries of the Euro zone), in Spain fell in February tenth , to put the annual rate of 0.7% since marked 0.8% in January, thus continuing the path of moderation in prices that began in July 2008 as the leading indicator developed by the National Statistics Institute (INE).
It will be a new low since June 1969 confirmed the definitive national data of inflation to be published on 12 March.
BRENT AND TEXAS
A barrel of Brent for April delivery remains with weekly closing levels similar to the previous closing at $ 44.80 a barrel compared to $ 45.88 per barrel which closed the previous week.
Its counterpart, the barrel of West Texas Intermediate for April delivery also maintains similar levels to last week, but picking on the Brent, buying at the end of the week at $ 45.60, after the ECB announced new rate cuts announcing an increase in the weakness of the European economy compared to other world economies.
For details of the listing click here .
EURO / DOLLAR
The ratio Euro / Dollar is exchanged at the end of week at $ 1.266 per euro traded, continuing its gradual devaluation against the dollar, mainly due to increased weakness in the European economy and the falling price of money in the eurozone countries .
Other changes of exchange here .
BAG
The bad news and falling stock macro give no respite to investors who try to salvage their investments and savings of everything that smacks of risk ..
The IBEX 35, the main reference market in Spain, returned to 2003 levels, closing at 6936.90 points, representing a fall of almost 60% from May highs last year.
In summary, an unprecedented situation where everything is at minimum interest rates, stock market, inflation, employment, trust, economic forecasts and business ...
In any case, it sounds all wrong, because if we observe, is the first time we have interest rates at current levels in the eurozone, as well as low inflation, which can spur consumption in the medium term, employment and a return to growth. If we analyze from a technical standpoint, the stock has cut positions to levels 60%, which means it could be in near minimum nivleles rebound because history has shown that after prolonged growth falls are often succeed to levels between 50% -65%, after which rebounds occur at least partial, recovering half of the fall. Consolidation of positions will depend on how the economy evolves, so we could see a rebound soon to boost the IBEX to 9,000 points soon (technical rebound).
But for that we should receive some respite in the short term, such as unemployment levels that appear to be stabilizing, or indices of industrial production recovered positions, in addition to inflation must be contained at current levels, ie, not achieving deflation, or at least not for an extended period, as this would create a downward spiral of consumption, employment, spending that could lead the European economy (extrapolated to the world) to a deep chasm and exit difficult.
| Date: February 27, 2009 | Source: Economic @ 21 |
Go ahead and rate this post Loading ... REFERENCES
EURIBOR
While we are waiting for the ECB's decision on the further declines in interbank lending rate, the Euribor continues to fall until softened close at 2.033% in intraday trading, appearing to be landing on the support of the 2% official rate rate established by the entity that presides Trichet ..
However, experts predict that the Euribor continue its downward path next discounting rates to drop up to 50 basis points, which could place them at 1.5% in an attempt to revive the ailing economy.
Meanwhile, in February closed with a monthly average of close to 2.135% , setting minimum summer of 2005.
INFLATION
The Index of Consumer Prices (HICP) or Harmonized Inflation (measured in the same way in all countries of the Euro zone), in Spain fell in February tenth , to put the annual rate of 0.7% since marked 0.8% in January, thus continuing the path of moderation in prices that began in July 2008 as the leading indicator developed by the National Statistics Institute (INE).
It will be a new low since June 1969 confirmed the definitive national data of inflation to be published on 12 March.
BRENT AND TEXAS
At the time of publication, a barrel of Brent crude for April delivery suffers with a sharp rise from 12% to reach 45 weekly, $ 88 per barrel reaching out to OPEC estimates that the fair price deck should be placed around $ 50.
His counterpart West Texas Intermediate oil for April delivery rebounded even stronger and more aligned with President Brent up to $ 44.28 in New York, assuming a recovery of 17% per week in anticipation of the approval of the economic recovery plan, to stimulate demand for oil in the country.
For details of the listing click here .
EURO / DOLLAR
The ratio Euro / Dollar is exchanged at $ 1.2718 today the euro, remaining virtually unchanged compared to last week's change, forming a support near $ 1.26 per euro.
Other changes of exchange here .
BAG
New shocks in stock markets around the world after various publications of bad macroeconomic performance and business, as well as the third U.S. aid to rescue Citigroup again ..
The IBEX 35, the main reference market in Spain, lost 9.8% monthly, making it one of the worst months in history.
Rife in the markets panic after returning the markets to a minimum of 2004 for the Ibex 35 , touching touching 7,603.60 points (-7.5% weekly), or until 2002 for the Dow Jones stood at the 7365.67 points (-6% weekly). The bad economic data and market crashes hasty press world leaders to meet on Sunday in Berlin before the G20 summit .
HIGHLIGHTS OF THE WEEK
INTERNATIONAL:
The U.S. GDP shrank 6.2% in the last quarter of 2008
U.S. will increase its stake to 36% stake in Citigroup and the stock market collapses.
Publications of U.S. home sales data yields below expectations, being 4,490,000 for owned homes (-6.3% on the expected data) and of 309,000 for new homes (-6.5 % of the expected data).
NATIONAL:
The government of Spain reduced by 42.7% public offer of employment for 2009 to 20,561 seats available . Only be restored to 30% of the places that are free.
The harmonized inflation rate dropped Spanish to 0.7% in February according to the National Statistics Institute (INE). The final data will be published on March 13.
| Date: February 21, 2009 | Source: Economic @ 21 |
Go ahead and rate this post Loading ... REFERENCES
EURIBOR
This week Euribor has made a feint intraday rebound that was finally overcome by the downward trend that has also been affected in recent months. While we are waiting for the ECB's decision on the further declines in interbank lending rate, the Euribor softens lowering to close at 2.074% appearing to be landing on the support of 2%, official exchange rate set by the Trichet presides entity ..
However, experts predict that the Euribor continue its downward path next discounting rates to drop up to 50 basis points, which could place them at 1.5% in an attempt to revive the ailing economy.
INFLATION AND CPI
The inflation rate in the Spanish economy fell 0.8% in January, six tenths less than in December and the lowest scoring in the last forty years, since 1969.
For the first time since inflation began to subside in August, the correction in the price index is based more on economic recession and the slowdown in consumption in the lower oil prices. Moreover, as unusually low level of inflation facing employers and unions for higher wages.
According to data released by the National Statistics Institute (INE), the Consumer Price Index (CPI) fell by 1.2% from December.
BRENT AND TEXAS
A barrel of Brent crude for April delivery to back down this week to close at 40, $ 88 per barrel despite the insistence by OPEC the fair price should be around $ 50, so warns of further cuts in production if prices are too low.
Corrected OPEC last week lowered its forecast of changes in demand for crude this year and predicted that this year the world consumed 85.1 million barrels per day (mbd), 600,000 bpd less than in 2008 due to the global economic crisis.
Its counterpart, the West Texas Intermediate for March delivery closed this week lowered to the $ 37.80 in New York, representing a rise of over 10% in a week in anticipation of the approval of the economic recovery plan , which would stimulate demand for oil in the country.
EURO / DOLLAR
The ratio Euro / Dollar exchange today $ 1.284 per euro, remaining virtually unchanged compared to the change last week.
Other changes of exchange here .
BAG
Rife in the markets panic after returning the markets to a minimum of 2004 for the Ibex 35 , touching touching 7,603.60 points (-7.5% weekly), or until 2002 for the Dow Jones stood at the 7365.67 points (-6% weekly). The bad economic data and market crashes hasty press world leaders to meet on Sunday in Berlin before the G20 summit .
