The past week has opened the same unknowns of the previous and the international indices rather weak. A decisive turning came with the news about the success of the auctions of government bonds Portuguese, led by purchases of the ECB, an element that has brought the indices into positive territory. In equity markets, good weeks of rising main index up better than expected economic data. The U.S. earnings season for the fourth quarter is confirming the upward trend of profits and revenue. Sharp rise in week for European equity markets of banking and financial sector and thus to the European high financial baskets (FTSE Mib, Ibex), but have underperformed in Europe more defensive sectors. Emerging recovery in general although there are some minus sign (such as India and Turkey). In the field of foreign exchange, confirming the correlation between stock performance and the Euro: This week the European currency recovers the generality of the cross. The euro strengthened further because of fears of inflation and the possibility of an increase in interest rates by the ECB.
The inflation threat seems to be more realistic for developing countries. Central banks may be forced to review its monetary policy by the rise in interest rates and the revaluation of foreign exchange. This obviously would cause a drag on growth.
In conclusion, the trend in stock market indexes weeks has strengthened the weak and has consolidated the stronger ones, is also bullish trend in the medium term. Overbought levels remain high and the possibility of transfers or corrections.
Index Vix : is now the essential support at 16, in a context of pronounced downtrend. Correction possible increases and volatility in equity markets in the coming sessions
0 comments:
Post a Comment