Gold price set a new record against continuing fears over the economic outlook in Europe on Friday, 18 June. As a result of the regular trading session on the New York Mercantile Exchange, NYMEX, the August futures for gold delivery have risen by 0,8% to $ 1,258.30 per troy ounce.
Dow Jones Industrial Average went from minus very confident after the good news from the Eurozone. Old World reported that the threat of default in Hungary was not clear. Budapest will be able to avoid default under certain financial support from Brussels. At the time Dow Jones stood at 10,166.71 points. The loss dropped to -5.82 points or -0.06%. Also the Americans have pleased the new proposals the European oil spill response.
The exchange rate euro is not ready for war with the dollar. The European currency was trading today against the U.S. dollar is close to the minimum values for 4 years. Strategists Bank of New York Mellon Corp. London expects a single currency will experience a further decline, as today’s meeting of finance ministers of European countries, probably would not have a positive impact on the mood of the market.
EU finance ministers agreed on the regulation of hedge funds. In particular, the heads of financial institutions in favor of more stringent restrictions on the activities of hedge funds and private equity firms. An appropriate statement was made today by the Minister of Finance of Spain, Elena Salgado, the meeting with colleagues in Brussels. “I believe that we have reached a definite agreement on this issue,” – said EA Salgado.
European Commissioner for Economic and Monetary Affairs Olli Rehn said that Greece has received the first tranche of financial aid. Thus, 14.5 billions euros eurozone countries have provided and 5.5 billions euros have come from International Monetary Fund (IMF).
Last week, the players were discussing how long stretch the euro area. A of the Estonia had received approval for entry into the single European currency in 2011. The European Commission recommends the adoption of Estonia in the eurozone, as the country has fulfilled all necessary conditions for the transition to the euro. The final decision on the adoption of Estonia in the eurozone will be made on July 6.
Euro is very weak for the future growth. The financial crisis in Greece could adversely affect the value of the euro, bringing the rate of the currency may become equal to the dollar, – said the chief economist of Deutsche Bank, Thomas Meyer. “I think the dollar will soon be 1.2 euro and the further depreciation of European currencies is possible”, – said Meyer.
No default Greek or restructuring of its debts will not be announced on Wednesday an official representative of the European commissioner for monetary and financial policies Chantal Hughes. “The negotiations with the European Commission, European Central Bank and the IMF to create a support Greece has made substantial progress. Assistance to Greece will be provided,” – she assured.
Plans for European authorities to open air transport over the continent were under threat. In the UK and mainland Europe is approaching a new cloud of ash. Appeared before the message that the activity of the volcano has declined, not been confirmed.
The International Air Transport Association strongly criticizes the heads of European governments for their inability to solve the situation with transatlantic air communication after the volcanic eruption in Iceland. The head of the IATA Giovanni Bisignani is displeased with the actions of the European Ministers of Transportation, saying that it is unbelievable that they appointed teleconference only on fifth day after the beginning of eruption.