Late European session the single currency depreciated by 0

After the debacle of last Friday, the session yesterday was placed under the sign of a return to calm... at least temporary. As noted by Christine Lagarde, French Minister of economy, the turbulence of the end of last week have been favoured by scant trading volumes. Yesterday, while European operators were back, the euro continued its slide, for the fifth straight session. Late European session, the single currency depreciated by 0.89, to 1,2317 dollar, after falling to 1,2235 dollar, a level never seen since April 2006. Investors were waiting for the announcements of the Eurogroup, which held a meeting at 16 before the Committee at 27 today. A week after the announcement of the plan of historical support of 750 billion euros in European States in difficulty, the Finance Ministers need to reassure the markets on the mechanisms capable of ensuring the future stringent fiscal policies, but on European growth.

A quarterly survey of Fitch with a panel of European asset managers shows that 70 of them believe that States are facing the greatest challenge of their history in refinancing. The proportion of investors anticipating a deterioration in the terms of credit for sovereign issuers has increased from 70 to 73 in a quarter and 46 of the respondents consider the sovereign bonds as the class of the less attractive assets for their new investments.

While the Spain and the Portugal have presented additional austerity measures, fears grow about the effect of these programs on economic recovery in the euro area. "I do not think that the sovereign debt crisis will affect the growth of the entire region", moderate Larry Kantor, responsible for global research at Barclays Capital. According to him, accommodative monetary policy and the decline of the euro are factors in support, at least for the major European economic powers. "The sliding of the single currency does not call into question the Monetary Union", he says, stressing that the level of the euroeven at $ 1.20 n ' is not a subject of concern. Only the magnitude of the movement and its uncontrolled nature also concerned political leaders. Since the beginning of the month of may, the motto of the sixteen already dropped more than 7. On the market, this Tailspin pushes investors to purchase options - "rights" to sell the euro to a deadline given - to protect themselves. From Bloomberg, purchases of options of 1 month sales reached their highest level week last (from the options) since at least 2003.

Interbank relaxation

Purchases of loans of State by the European Central Bank (ECB) is the another subject on which markets need to be reassured. Is there a monetization of the debt, a source of inflationary The Institute of issue is defends and has also announced a liquidity-absorbing operation to neutralize its action last week.

Point positive, exceptional measures of the ECB translate last week by a slight relaxation in the interbank market, considered the lung of the financial system. The prospect of paralysis of this market - on which banks finance short term s ' feather.

Another encouraging signal, the European stock markets finished yesterday on a modest decline. The CAC 40 gave 0.47, to 3.543,55 points, while it had plunged 4.59 Friday. The Stoxx 600 broad index slipped only 0.15, to 248.09 points, after a fall of 3.4 on the eve of the weekend. The New York Stock Exchange has finished in the Green: the Dow took 0.05, to 10.625,83 points at the end, the S & P 0.11, to 1.136,94 points and the Nasdaq 0.31, to 2.354,23 points.