The dollar exchange rate continues to decline. Commerzbank currency strategists believe that the period of positive data on the Eurozone and disappointing data on the U.S. came to an end, resulting in a reversal in a pair euro / dollar.
Dow Jones Industrial Average is close to the mark of 10.500 points. Dow index gained +39.05 points (0.37%), pushing the bears away. At the same time, FTSE 100 index losing and is in the red zone. The British FTSE 100 index traded with a decrease to 0,04%, French CAC 40, on the contrary, lowered by a similar 0.04%, while the German DAX 30 lost by this time 0.25% of the cost. Today’s session at the leading European markets began with up and the best results were observed in shares of banks.
How seriously should be considered the threat of the new reecession and the second wave of crisis? The fact that the pace of economic recovery will begin to decline, many analysts have repeatedly predicted, therefore, in a sense, the events of recent months in the stock markets should not surprise anyone. Markets with their usual harshness and inconsistency warn that lies ahead. Last summer, they signal the approach of a tipping point and the beginning of recovery. Now they predict a short pause in growth. As already noted, this often happens during the recovery period: the positive dynamics slows down, the activity also decreases for a while, then to resume with renewed vigor.
Euro declines with great speed after reports that the stress tests for banks in the EU were easier than expected. As noted by Citigroup currency analysts, if this information is confirmed, the euro has become an exile in the foreign exchange market. Meanwhile, dealers noted interest in the euro / dollar in the area below 1.2800. The results of stress tests for European banks will be announced this evening.
Lloyds Banking Group plc is reduced by -0.77 points (-1.21%), approaching the mark of 62.81 points. At the same time, stock trading in Europe closed higher leading indexes, helped by a positive external background, a favorable macro-economic statistics of European countries and corporate news yesterday. Barclays, Lloyds Banking Group and HSBC Holdings went up by 4,62%, 4,21% and 2,66% respectively, while the paper Royal Bank of Scotland have fallen in price on 1,06%.
The future of the euro no longer looks gloomy. According to currency analysts Zuercher Kantonalbank, the forecast for the correctional movement euro / franc, the mark of 1.40 is still in force, despite concerns among investors about the results of stress tests banks of the European Union, which will be known on Friday.
Stress tests have become a new test for the euro exchange rate. According to currency analysts, Commerzbank, the weakening euro against the dollar may be limited, despite the fact that some European banks will not pass stress tests. Rumours that not all banks have successfully passed the test, not necessarily be taken as bad news for the euro, mark the bank’s strategy.
Belgian financial group KBC and the Franco-Belgian banking group Dexia (DEXI) successfully passed the stress tests. Tests that are carried European analysts showed that KBC, Dexia, the National Bank of Greece (NBGr), Commerzbank (CBKG) and Credit Agricole (CAGR) look worse than their larger competitors, but do not fall to dangerous levels.
The exchange rate euro to dollar will continue to increase. Commerzbank currency analysts say the euro could rise to $ 1.35 against the dollar, provided that the couple will continue to hold above the key level of support.(more…)
U.S. Stock Market has been the victim of new repression. Old World started a negative trend, and the Dow Jones supported bearish mood. Dow Jones Industrial Average fell almost -225 points or -2.16%. Dow index is now 10.135. Key share indexes in Germany that were in the beginning of the session in the Green Zone unable to resist the bears pressure and closed in the negative territory. The first blow came from the macroeconomic statistics, according to which the trade deficit in the euro area in May totaled 3.4 billion euros, while analysts had expected the trade surplus will decline from 1.8 billion euros the previous month to 1.5 billion euros.