The problems of the euro zone shackle European markets

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

European stocks gave up gains have been recorded since the beginning of the year as the caution on the problems of the euro zone abolished the effect of optimism sparked by new evidence of improvement in the economic situation of China. Since the beginning of this year issued a number of important economic indicators that point to a weak start to exit the euro zone from its financial crisis and the ongoing economic crisis since a long time.

But on the other side received Mzhadan Spanish and Italian bonds led to strong demand index difference between Italian bond yields and German for ten years by 270 percentage points.

Stock Trading

The FTSEurofirst 300 index fell for the European blue-chip stocks 0.1% to 1167.27 points, after rising 0.7% in the previous session. Investors money significantly to profit taking amid heavy selling of stocks. The French CAC 40 fell 0.1%, while Germany’s DAX rose 0.2%.

Mario Draghi was president of the European Central Bank had pledged last year to make all possible efforts and take all necessary steps to protect the euro with the launch of a program to buy bonds of member states in the region financially troubled without a ceiling.

Which helped to ease tensions in money markets and reduce the pressure on the bonds of these countries. However prevailed nervous, on the economic future of the euro area in fear of accession of Spain to the list of countries in need of financial assistance from the mechanism European Stability with renewed fears of repercussions differences between Congress and the administration of U.S. President Barack Obama on issues reducing the budget deficit and debt ceiling on global economy.

Successful auctions

The Spanish Treasury sold bonds worth 5.8 billion euros, beating its target range between 4 and 5 billion euros. Alexander said Dolce exchange analyst at BNP. Me.. A. The auctions were better than expected. Interest rates have fallen to bonds for two to five years and 13 years by 15%. Noteworthy that the bonds that were sold were higher than the target.

Italy conducted a successful auction for the sale of bonds and sold bonds for one year $ 8.5 billion euros, 11.1 billion dollars a yield of 0.864%, compared with 1.465% at the previous auction in December. This is the lowest level since January 2010. The results exceeded sale securities analysts’ expectations. The Bank “Lino Credit” Italian in a letter to clients that he expects yield fell nearly 1%, the lowest level since April 2010.

Euro Rises

The euro rose against the dollar and the yen 0.3% from the previous close to $ 1.31065 from 1.3085 dollars before the auction. Against the Yen euro higher price during the session at 115.50 yen, nearing its highest level in 18 months of 115.995 yen hit in the beginning of the month.

The euro rose in the latest trading 0.5% to 115.34 yen. The dollar and meat near the highest level in two and a half years against the yen is expected that the Japanese currency will incur further losses with the increasing likelihood that the BOJ take further monetary easing measures. The dollar rose 0.5% to 88.30 yen, near its level of 88.48 yen, which reached the end of last week, the highest since July 2010. The yen gave up most of the gains achieved by this week

. Said a trader at a Japanese bank: I see tremendous pressure on the yen at the current time. If breaking the previous low level will be the next target at 90 yen to the dollar. The Australian dollar rose to its highest level in 4 months against its U.S. counterpart. The Australian dollar jumped, which is linked to growth of 0.7% to $ 1.0587, its strongest performance since mid-September. The euro also fell against the Australian currency, touching the lowest level in a month earlier in the session.

 

Gold below 1660 dollars

The price of gold rose yesterday, while investors’ attention focused on the resistance above the level of 1660 dollars per ounce. The platinum group attracted the attention of investors as the economic outlook improves thanks to Chinese trade data better than expected. And instant platinum rose to the highest level in three weeks and is heading palladium for immediate recording the third day of the ascent.

Gold rose slightly in the spot market to $ 1659.04 an ounce below the level of resistance at the moving average at 200 days is $ 1661.07. And rose gold futures 0.2% to U.S. $ 1659.50 an ounce. And platinum Instant rose 1.1% to $ 1608.50 per ounce.

The earlier record highs in three weeks at 1614 dollars. Palladium rose immediately about 2% to $ 696.50 an ounce after touching a session highest level in a week at $ US709 an ounce. The price of silver rose 0.2% to 30.4 dollars per ounce. The decline in the precious metal after scoring a gain of about 1% mid-week.