European stock markets halted a seriesof gains, which have been recorded since the beginning of this year due to investors’ fear of rising economic risks, but on the other side Japan’s Nikkei jumped to its highest level since October 2008, taking advantage of the sharp decline of the yen against other major currencies. The euro rose against the yen to hit 127.09 yen against 124.17 yen in the previous session and rose against the dollar to $ 1.3359.
European sudden decline
European stocks fell for the curtain comes down on the brief recovery in the previous session as investors continued to worry due to the results of the work varied. The arrow French group Vinci one of the biggest losers and lost 2% after warning of a lack of growth activities for the construction of this year, while ArcelorMittal shares rose 1.2% after expectations of the largest steel plant in the world demand and profit improvement in 2013.
At one stage trading FTSEurofirst 300 index fell for the European blue-chip stocks 0.09% to 1153.09 points. The index fell 1.5% over the weekend before rebounding in the previous session when it closed up 0.3%.
Arno said Scarpasa fund manager in Montand Capital: “There are a wake-up call that the situation is not rosy in light of many of the economic and political risks. Maybe not rising European indexes for the next six months.”
Across Europe, settled indicator Britain’s FTSE 100 and Germany’s DAX unchanged, while the benchmark CAC 40 0.1%.
Nikkei the best today
In Japan the Nikkei Stock leadership 3.8% to close at its highest level since October 2008 up 416.83 points to 11,463.75 points, its biggest rise in a single day since the fluctuations after the earthquake in March 2011.
And jumped broader Topix index 3.1% to 986.82 points in heavy trading where they were trading 4.61 billion shares, or slightly less than 4.8 billion shares, the highest trading level since March 2011. And contributed to the rise in Japanese stocks improved investor confidence in the market as a result of the high expectations of profits of major Japanese companies.
Falling Yen support stocks
The yen fell to its lowest level in 33 months against the dollar and the euro to the expectations that the new governor of the Central Bank of Japan would soon move forward in further monetary easing. The dollar rose briefly above 94 yen level supported by news that Masaaki Shirakawa, governor of the Bank of Japan will leave his post three weeks before the end of his term.
The euro continued its upward trend despite the invitation of President Francois Hollande to defend the currency of irrational moves while the Australian dollar fell to its lowest level in 11 weeks after weak data on retail sales in Australia.
The Japanese currency has come under new pressure after Shirakawa announced that he will leave his post on March 19 instead of the end of April when term expires and a five-year term.
The dollar and the euro highs in the 33-month high of 94.075 yen and 127.695 yen respectively near Dhirutema in 2010 at 94.99 and 134.37 yen. The dollar last traded 93.77 yen, up 0.1% from the previous closing price in the United States while the euro was 127.18 yen steady at the previous closing in the United States.
The euro was steady against the dollar and recorded in the most recent trading $ 1.3567, down slightly from its price in the United States the first Tuesday but is still up significantly from week lows of 1.3458 dollars.
Improved and doubts
After more than five years on the financial crisis, has eased tensions in global financial markets, especially Europe in recent months, but that the global economy is still fragile and weak according to the National Institute for Economic and Social Research in London.
In the latest forecast Institute for the global economy, attributed the researcher Down Hollande this improvement to the EU’s commitment to preserve the unity euro zone and the agreement reached by the White House with Congress on the abyss of financial to avoid entering austerity measures severe effect, pushing the economy back towards recession.
Hollande said the firm decision of policy makers to support the euro zone in its current form and not allowing the resulting solution to calm the situation dramatically and we have seen more particularly financial markets respond to that. But the expert warned that the global economy will remain weak and fragile, it is expected to record growth this year by 3.3% and 3.7% in 2014, a level lower growth trend of 4 and 4.25%.
Adding that global trade, although it increased by 3% last year, but it is less than the trend growth rate of 6% with a large. The report predicted to shrink production in the euro area in 2013 by the decline in Greece, Italy, Portugal, Spain, Slovenia and France, had been expecting an increase of 1.4% for Japan and grew by 2.4% for the United States. Hollande said that the march disrupted bourses due to a defective banking system and a mysterious and Procedures fiscal austerity, particularly in Europe, and declining confidence due to the failure of initiatives to improve the global economy.