To save or not to save? That is the question – Weekly Summary Forex
Again the markets in the world fell and hard, closing not only the week but also the month of February in red. Dow Jones already accumulates six months of losses, in the last month fell almost 12% and 4.1% in the week. The rest of the markets was in line with the happened thing in Wall s$street. The Nikkei index of Tokyo managed to reclaim land in the week, being one of the few positives, although for the month also it closes in negative land.
What is happening? The recession is accentuated, the financial system does not give samples to improve and is indications of a new deepening of the crisis; we add to that the companies present/display disastrous results, trim dividends, there are no recovery signals and the fall in the activity esteem that will continue (and until it could increase his rate). They are too many reasons to think about positive. All this took to that Wall s$street closes this week in minimum levels from 1.997.
They are continued announcing plans, salvatajes and questions of the sort, but they do not manage to generate optimism. Why? On the one hand, it is not possible to be determined as they will be applied less and if they will be successful. As well, if somebody needs aid is because it is not well; they are “salvatajes”, “plans to reactivate”, “to avoid the depression”, putting on the table bad of the situation and the gravity. Perhaps here we find the reasons for which an action of Citigroup today has the same value that decades back: then, investors greet the aid and the endorsement, but they cannot award to the bank, since, that the losses are endorsed does not imply that they are not going to exist.
Round of the financial crisis is spoken of the second. In first the financial crisis exploded and soon this struck to the real sector; now perhaps the effect is the other way around and the blow felt by the real sector feels on the financial sector. The announcement of American Express to pay 300 dollars to certain clients, so that they give back the card to him (practically so that they stop being clients, previous cancellation of debts) can serve previously like argument for what has been said, although just with time we will be able to have more clarity envelope than it is what it is happening.
The director of the IMF also spoke of possible a second wheel of explosions in the financial market. Certain events give sustenance to their declarations. The crisis of many countries of East Europe, can strike hard not only to the economy of the zone but also to the financial sector of Western Europe, by their exhibition. Another nonsmaller data, was the record of retirement of deposits that occurred in January in the United Kingdom. A generalized and deep banking bullfight can generate new damages to the system.
Barack Obama announced that it glides to reduce the deficit to half for the 2.013; in the same week that projected, that the next budget considered to have the greater fiscal deficit from the decade of the 40. There were other events related to the debt of the United States. Horseradish tree Bernake, said that the plan to buy treasury bonds of long term, at the moment was not going to carry out itself. The yields for the different sections, continue pointing towards majors corrections. Although, a worsening in the crisis, could put to this doubtful refuge, of return in the main menu of the investors; although they do not have good fundamentals for the future.
The fall of Wall s$street towards the minimums in several years, was not accompanied of great movements in the FOREX, as it happened in the past. This time the dollar did not realise new bearish routes against the Euro, over the October levels; although it was the currency of better performance in the week. The main news of the market, was the fall of the yen against one extends basket of currencies, removing to him the status from safe refuge to the currency.
After surpassing the thousand dollars, the gold fell strongly (more than 50 dollars); although it maintains his tendency and its status of refuge positive. Petroleum on the contrary registered one raises important, reached maximum prices from January. It follows the negative tendency effective, it raises although it of the crude one had the particularitity to be accompanied of forts fallen in stock-market. The cuts in the production will be feeling.
