27 February 2013: Berlusconi “derailed” world stock markets



Yesterday we again could not see a uniform dynamics on the world stock markets. The European indexes fell off on news on outcome of the Italian elections, having lost on the average 2,5%. At the same time the American indexes could show ascending dynamics, having added about 0,7%.

There were a few reasons for activity of buyers in the American market. First, speech of the head of the Federal Reserve System (FRS) Ben Bernanke. The banker sounded the position concerning influence of a new round of the program of quantitative easing (QE3) on economy of the USA. Bernanke focused attention of investors on advantages of QE3, among which economic recovery against control of inflation at the level of 2%. According to the head of FRS, benefit from soft monetary policy outweigh the related risks so turning of stimulating measures is not necessary at the current stage.

Besides that, another source of a positive was data coming from the market of real estate of the USA. So, sales of new houses in the country unexpectedly grew by 15,6% in annual expression. Let’s note that last year became the most successful in the housing market in the USA after 2009. In 2012 growth of sales of new buildings became maximum since 1983, having made 19,9%. It is necessary to note, that we can expect that real estate market will continue to develop this year as well, but definitely much slower.

Meanwhile, in Europe the main subject for discussion there are parliamentary elections in Italy. They caused a lot of noise and confusions in the financial markets. Profitability of the Italian bonds in the secondary market flew up to 4,8% that became a maximum level since the beginning of December, 2012. Besides, political risks in Italy led to euro exchange rate falling to a minimum level since the beginning of year. This morning, we can see EUR/USD pair traded on a level of 1.3076.

Risks of strengthening of debt crisis dragged off down world prices for oil. Brent is bargaining on a level 112.66$ and WTI on 92.78$ per barrel.

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