Fundamental analysis
Gerardo Porras
Yesterday, world stock markets showed a growth of contributions to the growing optimism of investors, supported by rumors that the EC is preparing a plan to recapitalize European banks to large scale and in the expectation that the IMF could be studying a fund to buy debt Italian and Spanish. The mood of investors has improved thanks to discussions taking new measures to support the European banking system and after the macroeconomic statistics output stronger than expected in the United States. The dollar weakened yesterday against most major currencies in cash, except the British pound and Swiss franc while the dollar index, which reflects the dynamics against a basket six currencies, fell yesterday to 79.00 from 79.83 the Tuesday.This morning the British currency fell almost 200 points against the dollar in a few minutes, and now recovers mildly positions after reaching the minimum 1.5275.
Within few minutes, the monetary policy announcement of the European Central Bank. In this regard, many analysts believe a rate cut timely interest. However, the publication of retail inflation in the Eurozone, met last week, would not lead to a measure of this type. In situations like the current one is clearly showing the difference between countries that have a certain economic boom and those who do not. An interest rate cut might somehow encourage Greece and other countries in crisis. Instead, it would be very damaging for Europe's largest economy, Germany.
The press conference of ECB President Trichet, from 8:30 am Eastern will shed light on the fundamentals of the ad. Trichet leaves office in the coming weeks, after which management will be able to criticize many things except one: not being faithful to the statutes of the ECB. In the worst moments, the officer did not stop talking about inflation, when the main problem was not that, but a recession which is costing too much to leave to Europe.
Also at 8:30 will be known in U.S. weekly jobless requests.
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