The U.S. central bank began tightening cycle of monetary policy. This happened quite a surprise, since no signals were given prior to such intentions. Policy on withdrawal of money from the system began with an increase in the discount rate that commercial banks pay the Fed on its direct loans from the central bank. He was raised by a quarter percentage point to 0,75 percent. Among the reasons the central bank is that commercial banks must rely more heavily on money markets to raise the necessary funds, rather than resorting to the services of the Fed. These changes are considered as a step toward normalization of credit facilities the Fed,” says the official release of the institution. “No change is expected to lead to further tightening in financial conditions for households and businesses and they are not intended to signal a change in the outlook for the economy or monetary policy,” the Fed explained. After news of the dollar shot up sharply since the central bank’s actions are perceived by the market as a signal that is to tighten monetary policy. The dollar jumped to a level of 1,3485 EUR / USD, as at an earlier stage had reached a level of 1,3444 EUR / USD.
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The price of crude oil fell in Asian trade because of fears that lending in China will reduce the pace and because of expectations that stocks will rise in the U.S. for the third consecutive week. Among the reasons for the decrease in cost of raw materials and the growth was the dollar to levels of 1.4196 EUR / USD at 1.4288 EUR / USD yesterday. U.S. light crude for delivery in February fell by 82 cents, or 1 percent to 78.20 dollars a barrel in afternoon trading on Asian trade. Today is the last trading day of the February futures. The more active the March contracts fell by 72 cents, or 0.9 percent to 78.60 dollars per barrel. Yesterday the price of raw materials rose by 1.02 dollars or 1.3 percent to 79 dollars for barel.
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Disappointing data on the reduction of employment in the U.S. economy in December, however, failed to wipe out the economic optimism of investors. He was a driver of the rally on Wall Street over the past ten months, together with the measures of governments and central banks to combat the effects of financial and economic crisis. The next few weeks, will be much more dynamic with the beginning of the first corporation to the new year season. Three of the largest companies in the index of blue chip Dow Jones IA – Alcoa, Intel and JPMorgan Chase, will publish its financial results for the fourth quarter of last year over the next five days, police CNN. On the economic front, the most important will be data on retail sales in the U.S. in December, and those for consumer confidence, industrial output and trade balance. The indexes reached new 15-month highs earlier this year, their rally would depend largely on the financial performance of the stock companies that would be indicative of the actual state of the economy. For the last quarter of 2009 is expected to increase the profits of companies in the S & P 500 by over 200% yoy. However impressive forecast is due largely to the sharp deterioration in financial results over the last comparable quarter of 2008, when the crisis hit very companies most like those suffered from the automotive and financial sectors. Week, and corporate season will begin with reports of aluminum giant Alcoa, which is expected earnings per share of 6 cents to a loss of 28 cents a year ago. On Tuesday, after the end of the session and the results will come out of the technology company Intel, which is expected to more than seven times greater earnings per share from 30 cents.
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The investors are imported 11.1 billion in U.S. mutual funds in the week that ended on 23 December. This is the largest inflow for the past 79 weeks show data analyst firm EPFR Global. At the same time withdraw funds from cash funds slows gasket during the last week, it is clear from the data. Large funds remain profitable investments in emerging markets who are about to celebrate a record inflow. Funds for investment in shares and investment in these bonds, which are monitored by EPFR, are respectively 13.3 and attracted $ 4 billion last week. Most funds were directed to funds for investment in shares in the U.S. However, since the beginning of the year from funds investing in shares of the U.S. market have withdrawn 69 billion dollars.
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