The decision of the authorities in Germany to limit speculation in certain financial instruments by banning the trade of short “with them cause strong movements in financial and currency markets in recent hours. As a result, the euro sank again, gold and oil retreated positions. By decision of regulatory authorities in Germany were banned short sales of shares of the ten leading banks in the country, government bonds and related swaps for protection against non-performing debt for the period ending March 31st, 2011. This decision was taken to the disapproval of the markets because it is alone and does not comply with Germany’s partners in the European Union. According to some estimates, such a unilateral act could have a more negative effect than is likely to calm the situation. Some experts indicate that action as a sign of desperation and a signal of major weakness in Germany, transmits Reuters. The explanation of the regulators in a country that action be taken “because of unusual volatility in the price of government bonds in the euro area. After Germany, similar measures can be introduced, and Austria, which, however, said it would seek discussions at EU level. “We intend to put this issue on the agenda of the meeting of finance ministers on Friday, the goal is a ban on short selling in the EU”, said yesterday the representative of the Austrian Finance Ministry for FT.
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