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Unread 12-20-2011, 03:19 AM
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Market update - 20.12.2011

Pessimism still is present
in the market


On Monday, on December 19th, the basic American indexes were closed with a fall. After short trade in plus the market has rolled down against comments of Mario Dragi that economic prospects in the European region remain very uncertain, and laws don't allow to increase purchase of bonds.

Article in Wall Street Journal about FR's possibility to make to banks more rigid requirements to the capital, in turn, "has added fuel to the fire", and the bank sector has appeared in leaders to decrease.

It seems that in Asia threats also accrue and situation every day becomes more and more heated. The basic indexes in Asia have shown negative dynamics yesterday. The death of the head of the North Korea Kim Jong II became one of the latest news, which has provided prompt falling at stock exchanges. According to investors, younger son of the dictator appointed as its successor, could be not strong enough to settle the unstable political situation observed in the country.

We will notice that problems of Europe remain significant news, which put pressure upon investors. Yesterday came news that additional 150 milliards are going to be released in order to help Europe to overcome debt crisis. Germany and France should make the greatest payments. The countries not entering into an Euro area, but being thus members of EU, are going to allocate funds to IMF too.

Prices of oil will be also considered as a significant fact. Oil prices has gone up and recovered a bit from the bottom levels and reached 104,02 dollars per barrel in price. Gold is picking up a little bit and is traded on a level 1600,19.

There are expected statistics from Germany and statistics on house building in USA
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