Archive for May, 2010
The NYSE leaped at the opening of trading, the Dow Jones winning juqu'à 4.28% and the Nasdaq 4.89% in the wake of European markets.
"Investors welcomed the approval of European plans to save Greece and support the euro," said Joseph Hargett of Schaeffer's Investment Research.
The sectors most attacked last week during the fall of the market posted the largest rebounds Monday in the New York Stock Exchange, with a general trend that began with the adoption of a contingency plan to cope with financial crisis in Europe.
Financial stocks, technology and industry and were particularly sought.
Within the Dow, the largest increases were marked in particular by industrial conglomerate General Electric (6.75% to 18.02 dollars), the telecoms equipment maker Cisco (5.99% to 26.18 dollars) or bank Bank of America (6.43% to 17.22 dollars).
The retail giant Wal-Mart, a title which had resisted the decline, was the only value in the red among the components of the index feature.The track lost 0.48% to 52.15 dollars.
The agency mortgage refinance Fannie Mae (5.34% to 1.0850 dollars) on Monday published a loss of 11.5 billion dollars in the first quarter, and asked the federal Treasury to grant further 8.4 billion dollars by the end of June to offset its deficit.
The mining company Peabody (5.96% to U.S. $ 43.37) lowered its bid for Australian coal producer Macarthur Coal, proposing 3.8 billion dollars (3.4 billion USD) against 4 07 before, because the future of Australian tax.
The Bourse de Paris and all European markets opened lower sensitivity, investors taking profits after the surge caused by the fiscal stabilization plan to the European Union and the International Monetary Fund.
Around 9:20 am, the CAC 40 index declined by 1.7% to 3656.86 points, after finishing with a gain of 9.66% on Monday.
Other major European markets follow the same trend, London and Frankfurt yield 1.39% 1.35%.The Madrid Stock Exchange drops 2.69% and Lisbon, which rose slightly in early trading, yields 0.08%.
As for the European indices, the EuroStoxx 50 lost 1.84% and 1.3% Eurofirst 300.
In Paris, EADS alone (1.73%) increase in resistance after the recommendation of Citigroup to "buy" cons "hold".
Alcatel-Lucent shows the largest decline, losing 3% after surging more than 4% yesterday.Technip yields 2.16% while Goldman Sachs has withdrawn its list of preferred values for purchase.
Out ACC, NicOx tumbles 28% after announcing he would seek the suspension of its listing on Wednesday.
Arkema gaining 5.41% after the publication of its first quarter results.
The euro, which had rebounded a time on Monday above $ 1.30, traded around 1.2730.
U.S. light crude oil fell back and also trades at about 76.20 dollars a barrel.
Within weeks, we passed through a 45 billion euros to Greece a huge rescue plan of 750 billion euros for the euro area. What happened?
We went to a debt crisis from one country to the fear of destabilizing the entire financial markets. It is the return of systemic risk that we experienced at the height of the financial crisis in October 2008. The amount is huge because it necessarily refers to the entire public debt of the euro area. The idea is to have a strike force strong enough to prevent speculation from destroying the euro area.
It can push a sigh of relief. Banks, pointing the finger during the financial crisis, are again being drawn from the case by the government, the European Union, the ECB and the IMF meeting. This Sunday, the major European powers have agreed on a historic bailout, designed to guarantee the repayment of public debts of Europe. While the euro has benefited, with a rebound to $ 1.29, it is mostly stock exchanges and particularly banking stocks which soared on Monday on all world markets. + 23.89% for Societe Generale, 20.9% for BNP, 12.73% for the Deutschebank in closing …progressions more than cheering for a sector still in free fall last week.
Banks Societe Generale variation 23.89% +18.65% Credit Agricole +20.90% BNP Paribas Deutsche Bank Commerzbank +12.73% +8.97% +23.22% BBVA Santander +22.03% +19.87% Intesa Sanpaolo, Mediobanca +12.09 +30.77% Bank of Ireland % +6.38% HSBC National Bank of Greece +9.26%
After three hours of meeting at the Elysee summit on employment, social partners are not left completely empty handed, but full of reproaches. The employers because the relief measure "zero charge" since late 2008 enjoyed very small businesses for hiring employees will not be renewed and will cease on June 30 Subsidies for hiring older workers are considered but due to a unspecified. The unions because the head of state did not intend to repeat their request direct payments to households as in 2009. Besides the need to reduce public deficits, the government is confident that the crisis is looming, although that agency is still bottoming out and that the uncertainties facing international.
"We would end the crisis," he joked to his number one out of the CGT, Bernard Thibault, denouncing "the surreal optimism" of government.He said the austerity risk to restart the economy "in the wall" and the Social Summit is unlikely to ease the sense of injustice "very widespread among the employees. "There are strict measures so that employees are always at the bottom of the crisis on employment," he observed.
"The first to bear the costs are more modest in our country," added his counterpart of the CFDT, Francois Chérèque, "you must pass the day (events) on May 27. While he welcomed the continuation of measures to support employment, but regretted that "the purchasing power (…) measures put in place last year are not renewed."Shadow of the rigor that nobody wants to name our country hovered on the social summit", he added.
Unions have criticized the new tax exemption of overtime hours
Unpublished result of the recession of 2009, approximately 4 million people are registered as unemployed, including nearly 1.4 million over a year. Upon arrival, several unions were no illusions, just days after the announcement of a three-year freeze on state spending.They were fine during the meeting criticized the downsizing and public support for overtime for which the state spends more than 4 billion euros a year to cons-employment, these measures remain taboo.
"The president refuses to use the latest, he talks about stewardship (…) for us, the two elements that can lead to discipline, and are already used, are both the revision (…) Public Policy and pension reform ", for his part said the secretary general Jean-Claude Mailly FOR.
About direct payments to households (2.5 billion euros in 2009), "you know that France can not remain isolated in this way, it would be disastrous for our competitiveness," Mr Sarkozy told them . In addition, he said, "household demand continues today to be resilient," what does not corroborate the predictions of the INSEE."We must now begin the recovery of our public finances," he said.
Referring to measures to support the partial unemployment (370 million euros in 2009 for the state) and conversion of retrenched workers (CRP CTP), the Head of State said "the duty to maintain." To aid in favor of alternate, paid by the State to employers who recruit a young apprenticeship or professional contract, Mr. Sarkozy has held that they gave "fragile but encouraging results. "We can not risk putting them at risk," he said.
Global stock markets were moving down Tuesday morning, as the single European currency, investors prefer to be cautious after the euphoria the day before by adopting a rescue Megaplan support for the euro area .
On Monday, financial markets have come on and sometimes dramatic increases recrod: Paris has won nearly 10% while Wall Street posted its strongest growth this year.
On Tuesday, the mood was quite different, the European stock markets opened down sharply. Around 0800 GMT, Paris fell by 1.38%, 0.95% Frankfurt, London 1.30%, Milan 1.35%, 1.35% Madrid, Lisbon and Athens 0.57% 0 96%.
In France, with the exception of EADS (+2.15% at 14.46 euros), all the CAC 40 were in the red. Alcatel-Lucent posted the largest decline in the index feature (-3.64% to 1.98 euro), followed by Schneider Electric (-2.45% to 80.69 euros).Bank stocks retreated BNP Paribas lost 1.45% to 52.32 euros, Societe Generale 1.48% to 40 euros and Credit Agricole 0.88% to 10.64 euros.
This turnaround did not surprise the French Economy Minister Christine Lagarde. Monday, "the markets have responded too, with ascents (…) index as there had not seen for 20 years, and as it had never been seen in some countries," said Lagarde on France Culture."It was excessive, it drop back, it will calm down," she added.
In Asia, stock markets that had been washed away by the joy Monday, accused of frank declines Tuesday, dropping 1.14% Tokyo, Shanghai touching its lowest level in a year and Hong Kong is also in decline.
The caution is that while the single currency, a barometer of the crisis in the euro area, hovering around $ 1.27 Tuesday morning, erasing Monday's rebound had pushed briefly above 1.30 bar dollar.
The origin of this cooling, a communication from Moody's in late afternoon Monday.
The rating agency has repeated that it would lower the rating of Greece "quite certainly" significant finding "possible", a speculative grade adjustment, which means that Greece will be relegated to the high level of investment risk.For Portugal, it also provides for a reduction.
Despite the huge level of 750 billion euros agreed by EU leaders and the International Monetary Fund (IMF), "concerns remain," said Hideaki Inoue, chief economist at Mitsubishi UFJ Trust and Banking Corp.,."The question is whether the government (of European states who are in debt) can push through austerity measures," he said.
This plan unreported, for the countries of the Eurozone in trouble, includes up to 60 billion euros in loans from the European Commission, 440 billion in loans and guarantees through a special organization and 250 billion from the IMF.
Greece, whose debt is unfathomable to the origin of the current crisis, on Monday adopted its pension reform, one of the steps leading to a dose of austerity, providing pension cuts of up to 20 %, in return for international financial assistance.
Athens will ask Tuesday a first payment of 20 billion euros as part of the aid plan.The payment of this first installment, which the EU should take over 14.5 billion euros and 5.5 billion the IMF "should be immediate, perhaps in the day," said a source from the Ministry of Finance. Greece must meet May 19 with the maturity of a bond loan debt of around 9 billion euros.
In the market for sovereign debt, the trend is stabilizing, the rate of the Greek requirement to 10 years displayed at 7.850% and 7.606 to 2% years shortly before 0800 GMT, or levels close to yesterday. These rates had plummeted Monday in proportions never before seen since the beginning of the crisis.