(Boursier.com) – In unsheathing the “bazooka” monetary Thursday, the ECB has thrown the financial markets. After an initial negative reaction, it took 24 hours for stock exchanges welcome the impressive arsenal of anti-crisis measures announced by Mario Draghi, the ECB president. Friday, Wall Street has followed the rise in Europe, and signed in passing its 4th week of consecutive increase!
At the close, the Dow Jones gained 1.28% to 17,213 points, while the broader index S & amp; P 500 took 1.64% to 2,022 points back above 2,000 points. Both indices thus ended at their highest level of the year 2016, which started on a steep decline from 4 January. The Nasdaq Composite Index, rich in values ”techie” and “biotech”, jumped 1.85% to 4,748 points. In Europe, the EuroStoxx 50 index soared 3.5% (after -1.5% Thursday).
For the week, the US indices gained 1.2% (Dow Jones) 1.1% (S & amp; P 500) and 0.6% (Nasdaq) and since the beginning of the year, it yields more than 1.2%, 1% and 5.1% respectively. The EuroStoxx 50 took 1.7% on the week, also its fourth week of progress, but it still lost 6.5% since 1 January.
On the bond market, the yield of the Good US Treasury (T-Bond) to 10 years, continued to climb by 5 bps (basis points) to 1.98%, in a logic of divergence between interest rates in Europe and the United States. Volatility, as measured by the VIX index (called the “fear index”) decreased by 8.6% to 16.50, confirming its return to its historical average of 20.
“Super Mario” continues to soften, while the Fed should go in the opposite direction this year
on the foreign exchange market, the euro lost some ground on Friday after a rather paradoxical soaring 1.6% yesterday. The European currency has yielded 0.2% to $ 1.1156 in trade between banks in New York.
The ECB therefore announced Thursday measures going beyond market expectations, lowering simultaneously its three key rates: the refinancing rate going from 0.05% to 0.00%, the marginal facility rate from 0.3% to 0.25% and the deposit rate is reduced from 0.3% to -0.4%. In addition, the ECB will increase from April 60 to 80 billion monthly repurchase program assets, which will be extended to bonds “investment grade” (good quality) non-financial corporations in the euro area. Finally, the ECB will launch a new loan program to banks (TLTRO) in four steps.
During his press conference, the head of the institution, Mario Draghi, said that after this round of ads, he saw no reason to proceed in the future to other rate cuts, given the magnitude of announcements Thursday. He gave the impression that the ECB had now done everything in his power for lower rates, which has worried the markets … 24 hours later, however, they chose to see the glass half full and wager on the effectiveness of the measures announced Thursday on growth and inflation in the euro area.
in the US, the strong gesture from the ECB could complicate the task of the Fed, who wants his side raise interest rates this year, after ending in December with its near-zero rate policy in force for 7 years, since the end of 2008.
the Fed will bring together 15 and 16 March its monetary policy council, and investors expect the majority to a standstill, given signs of a slowdown in the global economy and recent market turmoil. After the announcement of strong economic indicators in the US, particularly in terms of employment, investors expect Janet Yellen, president of the Fed, confirms that it remains in line with new increases in current 2016 rates.
oil prices have reached the lowest, according to the IEA
on Friday, the oil market is again on the rising, WTI barrel of crude up 1.8% at $ 38.51 in New York. According to the latest monthly report from the International Energy Agency (IEA), oil prices may have hit their low point.
“There are signs on the fact that the prices may have hit bottom, “and notes the IEA, which emphasizes, however, that” there are many ways to go “before returning to higher prices. Black gold has already recovered about 45% from its lowest for 12 years, reached on February 11, under $ 27 per barrel WTI.
The signature on February 16, the Doha agreement to freeze production at its January level, gave the signal rebound. Although this agreement, initiated by Saudi Arabia and Russia, may not be applied by some producing countries, starting with Iran, it is a first step towards reversing the surplus of world production.
as for values, the Nasdaq biotech, NBI, rebounded 2.7%, while banks, energy stocks and technology were also well oriented Friday.
Apple climbed 1% after confirming the holding of a “special event” on March 21 at its headquarters in Cupertino, California. Analysts expect the launch of a new iPhone, intermediate between the iPhone 5 and iPhone 6, dubbed iPhone OS, as well as the presentation of a new tablet.
The Action Verifone jumped 6.1% after the specialist in electronic payment systems published better than expected results for its fiscal first quarter of 2016.
the laboratory Pfizer has signed the largest increase in the Dow Jones (+ 3%) while the worst performance went to Procter & amp; Gamble (P & G) with a small 0.6%. Only two DJIA values fell Friday, P & G then, as Wal-Mart (-0.3%)
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