Mar
17
The Central bank of Europe was founded in 1999. The Council of the Central bank of Europe is the one who decides the changes in the monetary policy. This advice this compound of 6 members of the executive meeting of the Bank, besides 12 representatives of you soothe of the Central bank of the 12 nations of the Euro zone.
The goals of the Central bank of Europe consist of maintaining stability in the prices and a sustainable growth, nevertheless unlike the Federal Reserve in Central bank of Europe looks for to maintain goals of inflation under 2%. As dependent economy of the export in Central bank of Europe maintains preoccupations with respect to a strong Euro since this increases the price of its goods affecting the exports.
The Council meets biweekly, nevertheless the decisions with respect to the monetary policy in announce in a press conference 11 times during the year.
At the moment the president of the Central bank of Europe is Jean-Claude Trichet, successor of Wim Duisenberg, was postulated in November of the 2003. Trichet is characterized for being careful, although some criticize their slow answer towards the high unemployment in Europe, is known him by movements against the inflation, DES then of everything is responsible by the handling for the monetary policy of 12 nations.
Mar
17
The types of interest that are applied to the mortgages to 30 years inthe United States fell by tenth consecutive week, and they are placed already in an average of the 5,01%, the lowest level in at least 38 years.
The hypothecating company/signature Freddie Mac informed through an official notice into which only one week ago the average of the applied types of interest was of the 5,10%, whereas a year ago it was of the 5,87%.
Ever since in 1971 Freddie Mac it began to make pursuit of the types of interest that were applied to the loans never had registered a so low mean level.
This continued reduction responds, according to the company, to the decision of the Federal Reserve of the United States to invest 500 million dollars in buying instruments of debt endorsed by mortgages and emitted by the Americans Fannie Mae, Freddie Mac and Ginnie Mae.
Mar
17
LONDON. – The European actions lowered to Thursday pressed by the titles of banks and miners, because a wave of weak economic data elevated the fears to a deep world-wide recession and Wal-Mart retailer disappointed with his report of sales.
The index of the main European papers FTSEurofirst 300 fell 0,8%, to 870,92 points, after to have fallen until a intradaily minimum of 859,83 units. In the 2008, the referential one sank 45 percent.
Wal-Mart, the greater retail chain of the world, reported weak sales same stores of December and trimmed its forecast of quarterly gains. Many more companies of the sector also noticed that their utilities would fail to fulfill the expectations in the fourth trimester.
The banking sector was the greater ballast of the index. The papers of the Commerzbank, Deutsche Bank, Standard Chartered and DT Postbank collapsed between 5,7 and 13,8 percent.
The mining titles lowered in line with the prices of the metals, that fell by the fears to a deceleration of the demand.
The actions of BHP Billiton, Anglian American, Vedanta Resources, Xstrata and Red Rio descended between 3,1 and 5,9 percent.
Nevertheless, the papers of tie companies to the oil sector had a good performance although the prices of the crude one fell more than 1,0 percent.
The titles of BP, Royal Dutch Shell and Tullow Oil climbed between 1,6 and 5,3 percent.
WEAK NUMBERS
A series of negative economic data painted a shady economic panorama.
In the zone Euro, the confidence fell to an historical minimum in December before increasing unemployment, whereas the expectations for the inflation collapsed, which gave a new reason so that the European Central bank trims the interest rates the next week.
“The markets are not completely stupid when worrying about the risk to a prolonged depression, because the banking sector has been reducing its indebtedness”, Andrew thought Bell, head of investigations of Rensburg Sheppards.
“But it is more probable that for this year ends is a way so that the credit market again works and a combination of lower interest rates, some tax cuts and programs of governmental investments will have removed from great negative numbers to small numbers of growth”, maintained Bell.
Between the index local, Briton FTSE 100, German DAX and French MILLRACE 40 they lost between 0,1 and 1,2 percent.
Mar
17
- Auction of dollars of Bank of Mexico Fails.
- The currency accumulates a fall of 11,38% during three months.
- The type of change closed in 13.6450 units by currency.
15,4 thousands go mdd in support to the weight to a trimester of the accomplishment of the auction of dollars to cushion volatileness in the type of change on the part of the Bank of Mexico (Banxico), the weight has registered in this period a fall of 11,38 percent, equivalent to a loss of 1,3950 pesos, in front of the American currency.
From the 8 of October to the closing of the session of yesterday, the central bank has auctioned 15 thousand 444 million dollars, in order to cushion the effect that produce on the exchange market the global movements towards values refuge fly to quality and the low ranks of operation.
The measurement of the monetary authority, along with the Commission of Changes, began in a rank of type of historical maximum change of 12,2500 pesos by dollar spot, that agreed with the fear of the confirmation of a recession in the EU and the losses of derivatives by exchange covers of Mexican companies.
Only yesterday, the Mexican currency lost 20,75 cents, equivalent to a backward movement of 1,54 percent, to back close in the 13,6450 pesos by dollar spot, leaving its good beginning of year, in spite of the auction of 266 million dollars of international reserves of the Banxico.
This, due to the negative expectation that had the investors in the data of the list nonagriculturist, who will publish itself today in the United States.
And she is that the participants of the markets realised covers to be prote’ge’s until knowing that indicator, because they fear that their result is pessimistic.
Mario Copca, director of Analysis and Strategy of the Exchange Market of MetAnálisis, explained that the importance of this economic data for the type of change is in the revelation of which is the volume of uses that are being lost in the EU. to leave the expectations of the economic agents above, it could put in risk a crisis of greater term.
Before this fear, the investors look for to cover themselves and realise covers or to goes towards values refuge fly quality, bringing about a depreciation in assets in weights.
Since the dollar has been debilitated, the weight against the Euro goes up to around the historical minimums of 18,70 units.
Mar
17
Yesterday, the dollar, developed a very volatile session, since the American stock market took significant gains. Dow Jones gained 240 points, or 3.5%. Partly had to that General Electric declared that if lost its qualification like AAA, the company, would not be harmed in minimum, in addition, General Motors affirmed that month will not need governmental aid east, and the improvement of the retail sales, without a doubt, impelled stock-market. This caused forts fluctuations in the American currency. Con certain currencies the dollar took terrain, but against others, like the Euro, he withdrew.
The dollar fell 100 points against the Euro and closed yesterday in 1.2924, since the investors turned upside down to assets of greater risk. Against the pound, the dollar, also fell, nevertheless, this phenomenon must to a correction of the pair. The pound gained 50 points against the dollar, and closed in 1.3918. Nevertheless against the yen, the dollar, gained 150 points and closed in 97.63.
Also, it is to emphasize that the Bank of America, the JP Morgan, and the Citigroup presented results positive, which benefitted to the stock-exchange improvement. If this tendency continues the present situation could be reverted. Perhaps and to future several investors leave the dollar, and return to invest in currencies as the pound and the Euro.
For today he is expected the U.S. Trade Balance to 12:30 GMT, and the Feeling of the Consumer of the University of Michigan (UoM) to 13:55 GMT. If the results surpass the expectations, perhaps pair EUR/USD reaches the 1,3000 to the closing of Friday.
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