The week started with the growth in oil prices. The reason for this is mainly speculation that OPEC’s new measures to curtail production will lead to a reduced supply of raw material. At the time of high interest are expected consumer confidence data in the U.S., which will be published tomorrow. Estimates for the improvement of the indicator, which can also lead to an increase in oil prices because of expectations that positive attitudes will be conveyed in the corporate sector. This morning American barrel light crude oil is traded with a growth of 0,5 per cent on Friday, as the quotations are close to 82 dollars per barrel. Last week, black gold has managed to rise by 2,3 per cent on Friday as only the price of oil has increased with 1,3 percent, reminds Bloomberg.
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In less than an hour after the opening of auction the sale of a 5-year Greek government bond was declared interest securities 9 billion, says Reuters. Market expectations of the Greek government was neighbor to distribute securities up within the framework of 3 to 5 billion, says Finance.news.bg. According to various sources of interest for the purchase of securities worth 16-17 billion. According to a banker involved in today’s auction, the average price achieved for this auction is for approximately 350 basis points interest rate spread. Thus the yield of 5-year Greek bonds is now at 5.97% to 2.32% return for their German equivalent (Bunds). This very successful auction and lead to a decline in interest rate spread between 10-years Greek and German bonds to 297 points after earlier today spread was 309 points to a record peak on Friday at 318 basis points. The news caused contraction of the interest spread between 10-year debt of Spain / Germany by 5 basis points to 87 points. The news helped to a strong surge in share prices of Greek banks on stock markets around 4 percent since the last weeks they were subjected to aggressive sales.
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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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The price of oil fell to 76 dollars a barrel during electronic trading today in Asia after the data for unexpected contraction in the services sector in the United States darken depreciation of the dollar. This week it became clear that lower demand has increased oil reserves of the largest energy consumer in the world more than expected. U.S. light crude for delivery in January to 0.4% cheaper to 76.15 dollars a barrel during electronic trading on the New York oil exchange. Oil futures ended Tuesday’s session to drop the price of 14 cents to 76.46 dollars per barrel, the lowest level last week. Compared to last Friday U.S. crude oil has dropped by 0.2 percent, but the beginning of the year its price was raised by 70%. He may continue to become cheaper now, if the data for unemployment in the U.S. market in November, disappointed analysts. They expect it to remain at a level of 10.2 percent for the second month. In the hours electronic trading on the international petroleum exchange in London Brent crude oil traded slightly decrease the price by 0.2 percent to 78.17 dollars per barrel.
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Most large U.S. banks will soon have to take public offerings if the Treasury require repayment of funds lent to them by the program to buy troubled assets (TARP), Reuters said banking analyst Richard Bouv. Earlier this month asked the Federal Reserve Banks, subject to “stress test” to come forward with plans to repay the amounts allocated in exchange for the issued preference shares in them. “In fact, all banks can easily redeem these securities of its cash balances, but only 3 of the top 30 banks would be left with adequate Tier if they do,” explains Bouv. It is believed that the Treasury aims ratio Tier assets to 12 percent, which means that banks will be forced to raise capital without government assistance before they are allowed to repay the funds under the program continues Bouv. “It stirs the thought that some banks would rather have public offerings, although their profits are in doubt.” Rochdale Securities analyst said that the swell of the U.S. budget deficit, which is expected to reach 9.5 percent of GDP in this fiscal year and the drop-down dollar, forcing the government to obtain funds where possible. Collection of funds awarded through the TARP program is one of the possible sources, according Bouv. Many banks want to return the funds received under the program, which was worth 700 billion dollars as participation in it is associated with restrictions on expenditure on salaries, dividends and redemptions.
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The price of gold fell by more than 4 percent on the London Metal Exchange today after the appreciation of the dollar reduced the attractiveness of the precious metal as an alternative investment. Dollar increase after the news about the financial difficulties of the Dubai government investment fund Dubai World, which reinforced fears in financial markets. Dollar Index, which monitors the rate of the dollar against a basket of six major currencies, rose by 1 percent today, after earlier this week dropped to their lowest level in 15 months. As a result, prices of all precious metals fell, led by silver. Gold with immediate delivery fell to 50.28 dollars, or 4.2 percent, to 1 138.10 dollars an ounce. This is the strongest decline in the price from 12 January to date. The February gold futures cheaper by 2.1% to 1 163.60 dollars an ounce in electronic trading at the stock exchange in New York. Thursday marked the third straight gold price record only within the last week. Compared to last Friday the price of gold has risen by 1,1 percent. Precious metals will probably noted fourth consecutive weekly increase. Consulting firm Standard Chartered Plc today released a report which shows that central banks are likely to be net buyers of gold this year, which never happened in the past two decades. This week it became clear that Sri Lanka has purchased 10 metric tons of gold from the International Monetary Fund for 375 million dollars. Previously, India and the island countries of Mauritius, respectively, purchased 200 tons of gold reserves of the fund against 6.7 billion dollars and 10 tons of gold to 71.1 million.
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Finance ministers of the G-7 remains unchanged opinion that excessive volatility and disorderly movements in exchange rates may endanger their economies forward Bloombergan, citing a representative of one of them. For the last finance ministers of the G-7 and central bankers met today in Istanbul, using such phrases in April. During the week, officials from the G-7 expressed concern that cheaper dollar threatens to slow recovery from recession in their economies, their exports more expensive. Since early March, the dollar has depreciated by 14 per cent against basket of seven currencies. “We welcome the statement of Finance Minister of the United States Timothy Gaytnar that has a strong interest in the United States have a strong dollar,” said Bundesbank President Axel Weber told reporters before talks. On his arrival in Turkey, Canadian Finance Minister Jim Flaharti said in turn that it is “worried” by the “upward pressure on the Canadian dollar,” the weakening U.S. currency.
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