European shares tested the highest level in two years

Gold price could rebound after Mario Draghi, president of the European Central Bank speech

European shares rose yesterday and headed a major indicator towards the highest level in almost two years boosted sentiment about the stock thanks to steps out of the budget impasse in the United States. While Brent crude fell below $ 112 on fears of an oversupply of oil.

The FTSEurofirst 300 index of leading European shares 0.3% to 1166.92 points, after hitting its highest level in nearly two years when he scored 1170.29 points earlier in the month.

The Euro Stoxx 50 index of the leading shares in the euro zone 0.5% to 2721.87 points.


Traders pointed to optimism that the United States will reach an agreement to raise the debt ceiling as one of the main factors behind the rise in the market after the own party said he will try next week to approve the extension of the federal borrowing authority for a period of three months.

Said Toby Campbell Gray, head of trading at Taverria Securities in Monaco “There are encouraging signs from the United States.”

He added that the stock market has maintained its strength despite uncertainty about the outlook for the economy, where many investors deliberately to buy stocks when prices were low.

“The bad news is well absorbed and good news better.”

Across Europe, opening FTSE 100 British and the French CAC 40 index rising 0.2%, while Germany’s DAX index rose 0.3%.


And the benchmark Nikkei index of Japanese stocks yesterday as investors took profits with continued caution before the announcement of the result a two-day meeting of the bank’s monetary policy committee while central market which absorbed most of the expectations to facilitate strong cash. The Nikkei closed down 1.5% to 10747.74 points, to continue to move away from the highest level in 32 months, which scored last Tuesday at 10952.31 points.

The decline in the broader Topix index 0.7% to 905.16 points.

Oil prices

The futures prices fell for Brent to below $ 112 a barrel yesterday, ending rally lasted for three days at a time overshadowed the economic woes and concern of oversupply fears of unrest in North Africa.

The global oil supply exceeded demand in 2012 the entire causing inflation stocks and provided a major supporting factor to counter any possible disruption in supplies.

The organization began the Petroleum Exporting Countries (OPEC) to cut production and pumping less significant quantities during more than a year in December in an effort to prevent the decline in prices.

However, many investors say that this action may have come too late and is likely to fall in oil prices in the next few weeks.

Futures fell for Brent 20 cents to $ 111.69. And U.S. crude fell 40 cents to 95.16 dollars a barrel after rising to its highest level in four months last week.

U.S. markets were closed yesterday in an official holiday.

And renewed concerns about the global economy and its impact on the demand after U.S. consumer confidence fell to its lowest level in years in January amid a state of uncertainty about the debt crisis faced by the country.

And confirmed worries about demand after a report of OPEC last week pointed out that the oil supply will outweigh much demand in the first half of 2013 even after Saudi Arabia cut production late last year.

Saudi Arabia’s oil exports

According to official figures published by the Joint Data Initiative yesterday that Saudi Arabia’s crude oil exports fell 124 thousand barrels per day to 7.154 million barrels per day in November.

And Saudi Arabia has cut-largest exporter of oil in the world produced 232 thousand barrels per day from October to 9.492 million bpd in November, which was largely due to a drop in the quantities of Saudi crude used in power plants of 232 thousand barrels per day and the decline in demand abroad.

And offset the impact of a lack of demand from the electricity sector rising demand refineries 53 thousand barrels per day on a monthly basis while stored Kingdom 193 thousand and 866 barrels per day on average, as shown by the latest figures Joint Data Initiative.

Initiative will publish official figures for exports of December until mid-February, but Saudi Arabia OPEC reported it lowered produced 467 thousand barrels per day to 9.025 million barrels per day in December.

The Saudi oil production in December less including more than one million barrels from its peak last summer when consumption rose Kingdom of oil to generate electricity to meet the growing demand for air conditioning.

But decline in Saudi crude production of 700 thousand barrels per day over the last two months of 2012 is also due to weak overseas demand.

The monthly report of the Organization of Petroleum Exporting Countries, which was published last week that global oil supply will exceed comfortably demand in the first half of 2013.



Yen gains due to profit-taking

Yen recovered from its lowest level in two and a half years against the dollar yesterday, as traders reduced bets big against the Japanese currency in the event came the expected monetary easing measures from the Bank of Japan less than expected.

It is likely that the yen remains strong until the announcement of the decision of the bank’s monetary policy committee today at the conclusion of a two-day meeting. It is expected that the central bank will raise its target for inflation for the lesbian and enhance the asset purchase program.

The traders and analysts said that if the central bank action came as expected, the dollar will be affected somewhat in light of that he has achieved substantial gains since October, and investors such as hedge funds will reap the profits. The dollar rose to 90.25 yen earlier, its highest level since June 2010, but fell later in the 0.7% to the previous close of 89.39 yen as traders reduced their positions city in light of the fact that the Japanese central often takes action without expected.

The euro fell 0.8% against the yen to 118.95 yen, erasing the highest level in twenty months registered 120.73 yen last week, while the Australian dollar fell half a percent to 94.19 yen, down from the highest level in four years 95.02 yen hit on Friday. The euro fell 0.1% from the previous close to 1.3320 dollars. D