News and Reviews European Economic Zone

[mynameisandhy]

News and Review of European Economic Zone

 

European Corporate Earnings Reports Positive Response

Friday, February 24, 2012

 

Most of the stocks in the major European bourses traded higher on Friday, as solid earnings report from BASF and Telecom Italia to help reduce anxiety about the economic slowdown in Europe, although less encouraging news came from Lloyds to reduce its earnings outlook after experiencing large losses in 2011 ago.

 

German DAX and French CAC40 continue to move higher so far with each collecting 0.9% and 0.55%. Britain's FTSE index also still controls the green zone with a slim gain of 0.05%.

 

In addition to reported earnings, BASF is also targeting sales and earnings will recover in the second half-2, easing concerns that the business will experience a contraction this year. Rising dividends will be distributed to the shareholders of the largest chemical manufacturer in the world is also pushing the market enthusiasm.

 

"Micro-economic news has moved the market today. Increase in dividends BASF will also reflect the improved performance of similar companies," said Ian King, head of international shares in Legal & General. "While Europe was in a period of contraction, the company reported a relatively better show if the economy is not as bad as feared three months ago."

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

British economy shrinks, GDP growth fell

Friday, February 24, 2012

 

The UK economy shrank in the last quarter of 2011, official figures reported Friday, while the overall growth for the year is lower than previous estimates.

 

Office for National Statistics (ONS) said that the economy contracted 0.2 percent in the last three months of last year, in line with previous estimates, mainly due to the decline in business investment.

 

Business investment fell 5.6 percent in the fourth quarter compared with the third quarter, down? 1.7 billion, equivalent to $ 2.68 billion to? 28.7 billion, the ONS reported. Manufacturing and construction output shrinks, while the dominant service sector flat.

 

However, household expenditure in the last quarter proved to be quite strong, up 0.5 percent compared with the previous three months after shoppers flocked to take advantage of huge discounts before Christmas, making it the first quarterly increase in household expenditure since the last three months In 2010, the ONS added.

 

The European Commission said Thursday that Britain is likely to avoid slipping into a recession due to a moderate rebound in growth in the first three months of 2012. A manufacturing survey by the Confederation of British Industry (CBI), which was announced Thursday, was the latest of a series of positive business survey that showed economic output is growing, and the commission estimates that UK gross domestic product will increase by 0.1 percent in each of two quarters The first year, and 0.6 percent for 2012 overall.

 

ONS Friday said it re-evaluate previous forecasts of economic growth in 2011 and concluded that weaker growth in the first and third quarter than expected, largely due to weaker output in the production sector. It said today they believe the UK economy rose 0.8% in 2011 overall, compared to previous estimates of 0.9 percent.

[mynameisandhy]

News and Review of European Economic Zone (Switzerland)

 

USDCHF 0.9000 knocked out of the Area

Friday, February 24, 2012

 

USDCHF decline phase of the 0.9300 level which began February 16 and seems still continues on Friday, with a further decline to below the 0.9000 level so far. Nevertheless, traders began to hesitate to push the currency pair is much after the appearance in the news that says that the SNB is preparing to push USDCHF rebound.

 

USDCHF is currently trading at around 0.8985 or approximately 0.25% below its opening price on Friday.

 

"Penetration of the 0.9080/66 support zone consisting of the lowest level in February 2012, its lowest level in November and 38.2% retracement of the upward movement since October 2011 has paved the way for a deeper decline towards 0.8960 which is 61.8% retracement of the move up 201 in October, "said Karen Jones, analyst at Commerzbank. Although it is still possible to reverse direction, Commerzbank analysts are unsure if the USDCHF will fall down to the 0.8788/69 area.

[mynameisandhy]

News and Review of European Economic Zone

 

European Outlook

Monday, February 27, 2012

 

• European Central Bank needs to look at the effect of multiple doses of ultra-cheap financing three years before taking the next policy and not required for the current action, the Governor of the ECB council member Ewald Nowotny said on Friday.

• He said no one really knows how much will be borrowed in the next tender in next week's three-year funding after the first offer ends in December close to 500 billion euros at the request of the bank.

• Tenders have been taken into account by playing a major role in the recent stabilisai the eurozone debt crisis.

• Cutting interest rates to zero and the negative impact would risk destroying an important part of the financial system, ECB policy makers Coeure Benoit said.

• In a speech in Miami Sunday, published by the ECB last Friday, Coeure also voiced the view that the ECB President Mario Draghi euro zone economy is stable and the expectations for improved gradually throughout the year.

• The German economy contracted 0.2 percent in the fourth quarter on plunging exports and private consumption indicated last Friday, but analysts said they expect economic growth to rise this year.

• Portugal make repairs expectations of the fragility of the economy from the rise of exports, Prime Minister Pedro Passos Coelho said last Friday, as the recession deepens and the country struggled to achieve the savings target is difficult.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Prospect of economic recession in Britain has eased

Monday, February 27, 2012

 

Sterling rose against the euro was recorded on Friday, up from initial correction, and noted the continued rise against the dollar as demand from corporations. But the expectation of the possibility of continuing stimulus program from the BoE will likely limit the appreciation of sterling.

 

Sterling initially fell to its lowest level against the euro due to 10 weeks of selling pressure by investors after BoE policy board Paul Fisher said the outlook for the UK economy is still unclear and leaves the question whether further monetary easing measures will be needed.

 

The UK economic data released Friday showed Q4 GDP contracted 0.2% q / q annualized basis and to record the expansion was revised down to 0.7% from 0.8% originally reported. while business investment is still weak, the rate of re-growing after konsumei tend to weaken in recent quarters.

 

Prospect of economic recession in Britain has died down following the release of data ekonminya improved, but the BoE minutes from the last trial last week indicated that the loose monetary policy are likely to continue for a while. Within minutes last Wednesday is seen that two members of the BoE, David Miles and Adam Posen, proposes to inject fresh funds worth 75 billion pounds into the economy (greater than 50 billion pounds are injected BoE), which have increased the likelihood the central bank will continue its monetary policy loose in the year.

[mynameisandhy]

News and Review of European Economic Zone

 

The results of the G-20 Rally Euro Strengthens on Top $ 1.34

Monday, February 27, 2012

 

Started this week (Monday, 27/02) in general global markets have positive momentum, so it is not just a rally in the forex market but also a number of bourses in Asia this day moving average in the green zone.

 

The single currency Euro gains continue today mainly thanks to the latest steps of the meeting of countries that are members of the group-20 (G-20) in Mexico last weekend. G-20 finally agreed to support and help finance the IMF (International Monetary Fund) in bailout aid funds to countries that were in debt. And plan fund raising will begin next April

 

In addition it is also related to euro rally continued risk appetite ahead of the European Central Bank liquidity operations to the stage-2, in which the central bank this week expected to shed low-interest loan fund around? 500 billion to the banking sector. Strengthening of the single currency Euro is started after the release of the German data which improved on last week, making some investors cut their bearish positions. However, a number of people argue that the ECB's operations are also likely to cause problems in the long run, and this makes the market a little upset.

 

And economic fundamentals will be the focus of today's market is the housing price growth data from the UK (Halifax house price), then the money supply data from the Euro zone as well as from America had been due to the release of data on Pending Home Sales are predicted to be positive for the housing sector.

[mynameisandhy]

News and Review of European Economic Zone (Spain)

 

Skip the Spanish deficit target

Tuesday, February 28, 2012

 

Government to formulate policies that can help lower the deficit in the current economic activity is shrinking. The budget deficit for 2011 reached 8.5% of GDP, lower than the publication of 2010 by 9.3% of GDP. But the deficit still higher than the government estimate of 8% and 6% EU target.

 

"We will create budget stability as soon as possible. We are in recession and this means that its budget policy necessary to remove Spain from the recession," said Finance Minister Cristobal Montoro. The European Union has set a deficit target of 4.4% Spanish GDP for 2012; but the Prime Minister Mariano Rajoy wants Europe to review the targets. Montoro said the government will send the latest budget data to Brussels at the end of the week as a review.

 

European Commissioner, Olli Rehn, the 2011 budget is still waiting for data to decide whether Spain Madrid need to do additional budget cuts this year. The European Commission will also examine whether the magnitude of last year's deficit is temporary or permanent, and whether there are errors in central or local government.

 

Meanwhile, the euro still keep strengthening in the London session. EUR / USD is now trading 1.3430, not far from the level 1.3462 daily high

[mynameisandhy]

News and Review of European Economic Zone

 

BNP Paribas Optimistic Euro Reaches $ 1.40

Tuesday, February 28, 2012

 

The euro will continue strengthening the banking sector to access funds if the ECB is more than cheap? 500 billion when the central bank liquidity facilities carried out three years, according to BNP Paribas strategic. "Injections of greater liquidity can relieve anxiety about the funding needs of European banks. This means it can weaken the U.S. dollar so as to encourage the strengthening of the euro," said Ray Attrill, strategic leadership of the BNP Paribas forecast EUR / USD reached $ 1.40 in mid-2012.

 

According to Barclays Capital survey, the ECB may be as much liquidity injections? 450 to? 600 billion while doing a three-year liquidity auction on 29 February. Attrill also optimistic that the euro will gain positive sentiment from reduced concerns over Greece's debt problems. "Distribution of bailout funds will be able to encourage the purchase of Greek government bonds of Europe. This means that there is flow of funds that go to Europe so that it will encourage the strengthening of the euro, "said in an interview with CNBC Atrill.

[mynameisandhy]

News and Review of European Economic Zone

 

The unemployment rate rose in Hungary

Tuesday, February 28, 2012

 

Hungarian central statistical office released data that the rate of unemployment in Hungary rose more than economists had expected in January.

 

The unemployment rate in December at 10.7 percent, rising to 11.1 percent in January. The unemployment rate is a rate slightly higher than expectations of economists expected.

The unemployment rate among youths aged 15 to 24 year range increased to 27.1 percent in January, whereas in the previous month amounted to only 3.26 percent.

 

In Hungary, there are about 474 700 people unemployed in January, after the month of December there were 459 000 people. While the number of unemployed youth during the month was 78 300.

 

While the level of performance in Hungary also declined after reaching 50.2 in December, while in January to 49.8.

For the number of people employed also decreased from 3.85 million to 3.82 million people, according to data released by the local statistics.

[mynameisandhy]

News and Review of European Economic Zone

 

Allocate ECB eur 529.5 billion for the Banking Sector

Wednesday, February 29, 2012

 

European Central Bank on Wednesday to allocate eur 529.5 billion ($ 713.4 billion) in loans to euro zone banks through the Long Term Refinancing Operation (LTRO) round-2 which may be completed within a 3-year period. In operation, the bank receives a loan with a duration of 3 years fixed interest rate of 1%.

 

Most economists had expected the bank would only borrow in an amount not far from? 489 billion in funds allocated to the ECB's long-term liquidity operations the first round last December.

 

The first LTRO ECB in December last been able to reduce anxiety about the funding of the banking sector, which helped encourage investors to return to collect the assets at risk and lead to bond market rally in the Euro zone.

[mynameisandhy]

News and Review of European Economic Zone

 

The euro strengthened against the dollar ahead of the LTRO

Wednesday, February 29, 2012

 

The euro strengthened against the U.S. dollar, as investors await the decision pembiyaan long-term operation of the second three-year European Central Bank today.

 

In December, EBC issued 489 billion euros in loans to three years more than 500 banks, preventing the breakdown of liquidity in the banking system and reduce the pressure of European bond markets in the region.

 

The euro came under pressure on Tuesday, after the Irish prime minister said his country would hold a referendum on new EU fiscal pact, which proposes tough new budget discipline in each country euro zone, including public deficit close to zero.

 

Terpantrau euro had hit 1.3486 against the U.S. dollar during recent trading in Asia, the second highest level since the currency is February 24; which then undergoes consolidation at the level of 1.3476, up 0.13 percent. The euro weakened against the pound but strengthened against the yen. Fell 0.06 percent against the pound hit 0.8458 and gained 0.10 percent against the yen hit 108.38.

 

On this day, the Finnish parliament will decide on the bailout of Greece, while the U.S. will release its fourth kuatrtal initial GDP.

[mynameisandhy]

News and Review of European Economic Zone

 

Await the action of the ECB, the majority of European markets turn green

Wednesday, February 29, 2012

 

The majority of European markets opened verdant, today (29/2). The stock market rose further in the blue continent for the second day, when the market awaits the details of the loan of the European Central Bank (ECB) to banks in the Euro zone.

 

Europe Stoxx 600 Index rose 0.3% to 265.22 at 8:08 pm in London. Meanwhile, during February, the benchmark European stock markets has gained 4.2%. Meanwhile, the Euro Stoxx 50 index rallied 0.37% and DAX index advanced 0.43%. However, the FTSE 100 index declined 0.03% thin.

 

ECB will allocate loans for the second phase of banking in the region. Analysts surveyed by Bloomberg estimate, the central bank will disburse loans worth 470 billion euros. Previously, the first stage of the loan has been granted a number of 489 billion euros in December.

 

Jonathan Sudaria, a trader at Capital Spreads rate, the trader now has two different expectations. "Is the injection of liquidity from the ECB will push the market up higher, or whether it will mark the end of the peak gain in the stock market," he said, today.

 

Meanwhile, the release of the issuer's financial performance was expected to influence market movements. A total of 25 issuers will release its financial statements today. Meanwhile, from the 219 listed companies that have reported their performance, as many as 111 companies deviated from the predictions of analysts' performance, but 96 other issuers succeeded beyond expectations.

[mynameisandhy]

News and Review of European Economic Zone

 

European unemployment rate increased

Thursday, March 1, 2012

 

The unemployment rate in the euro area increased beyond expectations in January, rose to its highest level since the inception of the euro, official data showed Thursday.

 

In a report, Eurostat said the euro region tingkatpengangguran increased to 10.7 percent in January in seasonally adjusted, rose Of the 10.6 percent in December, a revised increase of 10.4 percent from the previous report.

 

Analysts expect the jobless rate will drop to 10.4 percent in February. The unemployment rate in Europe, was at the level of 10.0 percent since January 2011.

 

According to the dat, a number of unemployment in continental Europe as much as 24.32 million in January, where 16.92 million of whom are in the European Union kawasn own.

 

Compared with the results in December, the number of unemployed increased by 191 000 in the 27 EU member countries and 185 000 in the region of Europe.

[mynameisandhy]

News and Review of European Economic Zone

 

European stocks higher after PMI data

Thursday, March 1, 2012

 

European stock markets rose after the euro-zone purchasing managers' survey showed a very mild economic recovery and as investors await U.S. jobs data today.

 

The Stoxx Europe 600 as margin notes mild increase in the level of 264.47. On the Wednesday session of the index recorded a decrease after Federal Reserve Chairman Ben Bernanke gives hope for the next round of quantitative easing, while giving testimony before Congress.

 

Stocks that recorded the largest increase in the index, Cable & Wireless Worldwide PLC jumped 19 percent after the Times of India reported Tata Communications Ltd may make a bid for the British telecommunications company. Vodafone Group PLC said last month it was considering bidding for the C & W Worldwide. A spokesman from the company's C & W declined to comment, while representatives of Tata Communications can not be contacted.

 

Britain's FTSE 100 index outperformed the major indexes, up 0.4 percent on 5899 levels. Man Group PLC rose 8.3 percent after it reported an increase in funds under management during the first two months of 2012 to $ 59.5 billion and said investor sentiment had improved since late last year.

 

European stock market struggled for direction in early trading after the Markit purchasing managers index for the euro zone showed activity in the region shrank at a slower pace in February, unchanged from the initial estimate.

 

In France, the CAC 40 traded lower, down 0.3 per cent, at 3,442.85, weighed down by Vivendi SA shares are down 8.9 percent. Media and telecom group reported record net income adjustments for 2011, but said they expect tax competition and higher profits weaken in 2012 and 2013.

 

In Germany, the DAX 30 rose 0.2 percent to 6866.12 level, supported by rising shares of BASF SE which rose 0.8 percent, and Bayer AG rose 0.7 percent.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Demand sluggish, lackluster British Manufacturing

Thursday, March 1, 2012

 

The rate of expansion of the UK manufacturing sector slowed in February after new orders both domestically and from abroad were little changed from January, while the cost of unexpected increases, the data from Markit and the Chartered Institute of Purchasing & Supply Thursday showed.

 

The data confirm that the economic climate remains uncertain economic recovery in the UK.

 

Domestic orders are burdened by weak demand after the public sector budget cuts continue to undermine the government, while foreign demand is affected by a lack of orders from the European mainland despite the demand from Asia and the U.S. grew.

 

Manufacturing sector Purchasing Managers' Index fell to 51.2 in February from 52.0 in January. With results in from 52.1 in January has revised previously reported.

 

PMI results surprised economists in a Dow Jones Newswires survey last week that forecast the index was unchanged at 52.1.

[mynameisandhy]

News and Review of European Economic Zone (UK)

 

Try Mute Attenuation Construction UK Sterling

Friday, March 2, 2012

 

Sterling weakened after a good try reducing construction data hinted England could please register economic growth this year. Construction PMI index rose to 54.3 for the month of January 2012, better than the previous prediction of 51.3 and 51.4 publications. GBP / USD is now trading 1.5925, trying to stay away from daily lows 1.5905

[mynameisandhy]

News and Review of European Economic Zone

 

European Stock Mixed in Early Trading

Friday, March 2, 2012

 

European stocks trading on Friday (02/03/2012) moves mixed after rising a week-long sustained policy of cheap funding facility from the European Central Bank (ECB).

 

FTSE index fell 0.03% to 5929, the CAC rose 0.06% to 3501 and the DAX index fell 0.02% to 6940. Asian stocks rose as the Hang Seng index rose 0.8%, the Nikkei rose 0.7%, the Shanghai index rose 1.4%, ASX index rose 0.4%. So quoting marketwatch.com.

 

Market-driven banking shares rose 0.5% with a step ECB launched the Long Term Refinancing Operation (LTRO). Experienced the highest strengthening Commerzbank shares rose 1.7%. Banking index in 2011 fell to 32%. But earlier this year, bank shares have risen 19% due to multiple steps in overcoming the crisis in Europe.

 

"The policy of the ECB and the fact that Italian bond yields decline has helped drive the market. Investors began to add to its portfolio. Although the banking sector have to be careful," said Keith Bowman, analyst at Hargreaves Lansdown.

 

President of the ECB, Mario Draghi said European banks greatly helped by the policy LTRO offering cheap cash injection of about 500 billion euros. This reduces the concern there is no solution to the crisis in Europe.

[mynameisandhy]

News and Review of European Economic Zone

 

Prefer bank parking at the ECB Funds

Friday, March 2, 2012

 

The number of banks in the ECB overnight deposits rose 63%, this is a new record and intimated the abundance of liquidity after ECB injection of 529 billion Euros of funds into the financial system on Wednesday. Deposits rose to Euros 776 billion, surpassing the record of 528 billion Euros are recorded January 17 last.

 

The amount of bank deposits continued to increase since August 2011 as banks prefer to keep their money in the ECB rather than lending channeled to other financial institutions due to protracted debt crisis.

 

ECB liquidity facilities provided daoatkan praise indeed from various parties, including the IMF, because it has helped restore confidence in the euro-zone and prevent the credit crisis. But the IMF said the ECB's policy has not seen the impact of the credit markets. IMF lending is somewhat pessimistic in Europe with its stagnant lending in January, after declining sharply in late 2011.

 

Meanwhile, the euro weakened in the London session. EUR / USD is now trading 1.3258, 1.3332 daily high level away from

[mynameisandhy]

News and Review of European Economic Zone

 

Stung by the issue of China, European markets slip

Monday, March 5, 2012

 

European stock markets stung by news of China's economic growth target pruning. Stock markets in the continent was the blue slip, post-gained in the previous two days. The Stoxx Europe 600 eroded 0.4% to 266.1 at 8:01 am in London.

 

Meanwhile, the Stoxx 50 index fell 0.55% and the FTSE 100 index fell 0.25% and 0.66% DAX trimmed. One of the big cap stocks that helped undermine the stock market, the Rio Tinto Group, which fell 0.9%.

 

Chinese Prime Minister Wen Jiabao said the government has cut its economic growth target for 2012 to 7.5%. In fact, in the last eight years, China has always aiming for economic growth in the level of 8%. The Chinese government will drive inflation was around 4%, no different from the previous year.

 

Besides the issue of China, the pace of strengthening European markets also hampered, as investors still wait and see attitude about the Greek debt restructuring. Investors are still waiting on how much the creditors who approved the debt restructuring.

[mynameisandhy]

News and Review of European Economic Zone

 

The euro fell against the yen, sluggish retail sales predicted

Monday, March 5, 2012

 

The euro fell against the yen before the fourth day of data expected to show retail sales of Europe will experience a third monthly decline.

 

The dollar index touched its highest point in more than two weeks before a report from the U.S. is predicted to show growth in service sector industries, creating speculation the Fed will do the relaxation of the policy to fade. While the Australian dollar after a sluggish trading partners, China, cut its development in 2012. The yen has strengthened after exporters bought the currency when he fell into the low point of the last nine months.

 

The euro fell 0.6 percent to 107 306 in London from yesterday's close. The yen rose 0.6 percent to 81.31 per dollar after a drop to around 81.87, its lowest level since May last year.

 

European retail sales are predicted to fall 0.1 percent in January from the previous month while retail sales fell 0.3 percent. The European Central Bank is also likely to keep interest rates in the range of 1 percent in the next meeting March 8.

 

In the last six months, the dollar has gained 4.1 percent while the euro fell 2.9 percent. in the same period, the yen slipped 3.9 percent.

 

The Japanese government will target economic growth of 7.5 percent this year, the lowest growth targets since 2004, Prime Minister Wen Jiabao said in Beijing today.

 

Aussie fell 0.2 percent to 1.0714 per dollar after falling 0.7 percent on March 2 last. against the yen, Australian dollar fell 0.7 percent to 87.16 yen.

[mynameisandhy]

News and Review of European Economic Zone

 

European Exchanges Weakens China Steps Depressed

Monday, March 5, 2012

 

European stocks slumped in opening trade on Monday (03/05/2012) China's move to revise the growth target this year to 7.5%.

 

FTSE index was down 0.2% to 5896, the CAC fell 0.4% to 3486 and the DAX index fell 0.5% to 6883.29. Attenuation experienced the deepest mining stocks. European Stoxx 600 Index fell 1.1% due to decline in metal prices dragged down China policy. So quoting;

 

At the annual session of China's parliament, President Wen Jiabao cut economic growth target this year to 7.5% from the previous target of 8%. This gives room to the economy with the potential of slowing down.

 

"China's economic growth is slowing will have a negative impact on the world market and commodity markets. In the short term, this is a negative sentiment for risky assets," said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets in Brussels.

 

Asian markets continue to weaken as the Hang Seng index fell 1.3%, the Nikkei fell 0.8%, the Shanghai index fell 0.6% and the ASX index fell 0.2%.

[mynameisandhy]

News and Review of European Economic Zone

 

Impact of Euro exit Greece

Tuesday, March 6, 2012

 

If the Greeks out of the euro zone would be "a disaster" for the Greeks, European Commission President Jose Manuel Barroso told the Austrian newspaper Die Presse reported Tuesday edition.

 

"For the Greeks, it would be a disaster. We know what happened to the people of Latin America when they go bankrupt," he said, AFP reported.

 

"It will also have dire consequences for the other euro zone members, will trigger a domino effect," he added.

 

"And then we'll probably have to increase the assistance provided to other euro zone countries," he said.

 

Barroso stressed there would be no alternative to "huge savings" Greece as a condition necessary to receive a new package of financial aid.

 

"Of course we see that the austerity program seems to bring a recession, but it's the only way Greece can regain the ability to compete," he said.

 

"Bankruptcy will only poison the atmosphere for investors. And then there will be no growth, or economic stimulus," said Barroso in a two-day visit to Vienna.

[mynameisandhy]

News and Review of European Economic Zone

 

European markets fall stung Greek sentiment

Tuesday, March 6, 2012

 

European stocks slumped at the opening of the morning local time. At 08:08 pm London time, the Stoxx Europe 600 Index fell 0.5% to 264.31.

 

A number of large cap stocks hit by sell-off. Among other things, PSA Peugeot Citroen fell 6.1% after it announced plans rights issue worth 1 billion euro issue and will not pay dividends in 2012. In addition, there is also Novartis AG shares fell after JPMorgan Chase & Co. lowered its recommendation on the shares.

 

The sentiment that affects the movement of European markets including: investor concerns about Greece's debt restructuring and economic data expected to show contraction in the European economy.

 

"The uncertainty regarding the participation of private creditors related to Greece burdensome debt swap measures the movement of the stock today. Investors prefer to be cautious as we go along," said Jonathan Sudaria, London Capital Group trader.

[mynameisandhy]

News and Review of European Economic Zone

 

Europe opened lower, Peugeot shares fall

Tuesday, March 6, 2012

 

European stock markets fell on Tuesday session, with mining and banking sectors led the decline in each sector.

 

Europe Stoxx 600 Index fell 0.4 percent to a level of 264.45, with Peugeot SA shares fell 6 percent more on capital increase report.

 

Other shareholders who also recorded a decrease, Cable & Wireless Worldwide PLC fell 4.5 percent. RWE AG shares rose 4 percent after the power company reported results and an optimistic outlook.

 

German DAX 30 index fell 0.4 percent to a level of 6839.68 and France's CAC 40 fell 0.4 percent to a level of 3475.28. The FTSE 100 index fell 0.2 percent to a level of 5860.26, with mining stocks decline recorded in the board of trade.

[mynameisandhy]

News and Review of European Economic Zone

 

Matter of policy, ECB Will 'Wait and See'

Wednesday, March 7, 2012

 

European Central Bank (ECB) faced with a dilemma situation ahead of the regular meeting this month. Although the pressure had eased the debt issue, the economic climate has not fully grown.

 

After cutting interest rates twice in the last two months, the ECB may not overhaul the policies at the meeting tomorrow. Since December, the authorities have also generously poured over 1 trillion euroke financial system. Set of policies that increasingly reduce the existence of further easing in the near future.

 

"We see interest rates of 1% will not change, but the policy bias is still likely to loose," commentator Stephen Webster, Market Analyst 4CAST. Not only that, Mario Draghi is also believed to be no plans to release a long-term funding operations three years (LTRO), at least in the near future. "The ECB is now wait and see whether the stimulus while monitoring the impact on the economy before the injection of new funds," said Frank Oland Hansen, Danske Bank Senior Economist. Flooding the market with liquidity is also not very good big for banking and financial mechanisms.

 

As noted in a letter from Jens Weidmann, Head of the Central Bank of Germany, who also serves as a board member of the ECB, to Mario Draghi last week. In his letter, Weidmann highlights the potential risks that could arise from the flood of ECB loans. It is considered vulnerable sparked speculation in the regional financial market. Thus, it is unlikely to change the policy for the meeting this week. In addition to already do too much, the ECB must also await the impact is clear from the previous policy, while waiting for the moments of the completion of the debt crisis.