Europe: the bears managed to win thanks to news from China

 

Wednesday, 20 January, European stock markets have shown negative dynamics. The reason for the decline served as news from China, and macroeconomic statistics published today. According to official information, China”s government turned to some banks with a request for curbing the pace of credit growth. By such measures regulators were forced to resort to “cooling” the economy, which continues to experience some difficulties, which became the world financial crisis.

Published today, the intra-macro-economic indicators were more mixed, but the data on the number of homes started construction in the United States and reporting of some American companies finally upset investors. Thus, the German producer price index in December fell by 0.1%, while the expected rate increase by 0,2%, while unemployment in Britain has declined from 7,9% to 7,8% with a projected growth to 8.0% . The number of homes started construction in the U.S. in December amounted to 0.557 million against the expected 0,580 million units.

As a result of trades regional index Dow Jones Stoxx 600 has lowered 1,52%. The British FTSE 100 weakened to 1.67%, the Swiss SMI fell 0.71%, while the French CAC 40 dropped to 2.01%. Losers was Spanish IBEX 35 INDEX, a decrease of 2,61%.

Shares of mining companies suffered heavy losses amid reports of new measures taken by the Government of China to the slowdown in lending. Thus, the paper world”s largest mining company Rio Tinto “thinner” at 4.29%, and Xstrata”s market capitalization decreased by 6,2%. Quotes Anglo American, Antofagasta and BHP Billiton fell by 5,2%, 5,97% and 3,61% respectively.

Oil industry workers were also not in favor in connection with the reduction in the cost of oil. Shares BG Group and BP lost 1,36% and 1,59% of the cost.

Representatives of the pharmaceutical sector once again managed to consolidate its position. At this time, they supported the victory of Republican Scott Brown (Scott Brown) for election to the U.S. Senate from Massachusetts, which endangers the health reform initiated by the American president. Thus, the paper Elan, 65% of sales which goes to the U.S. market, built up on 0,95%, but rates Merck KGaA rose to 2,13%.

ASML Holding shares jumped 3.11%. Europe”s largest manufacturer of equipment for semiconductors reported net1000profit in the fourth quarter of $ 50.5 million euros ($ 71.7 million), with an average forecast of analysts in a 44.5 million euros. Such a brilliant financial performance has been achieved through the restoration of demand for its products from manufacturers of chips.

Papers of the world”s largest manufacturer of computer mice, Logitech International “recovered” to 2,02% after analysts Exane BNP Paribas upgraded the rating of the company”s shares to “neutral” to “better market.”

Values of the basic indexes on closing are resulted in the table:

Index Country Closing (items) Delta day (items) Change day (%) value at beginning of year (the last closing in 2009) Change YTD
ATX Austria 2,647.81 -51.3 -1.90% 2495.56 6.10%
BEL20 Index Belgium 2,516.68 -30.68 -1.20% 2511.62 0.20%
FTSE 100 United Kingdom 5,420.80 -92.34 -1.67 % 5412.88 0.15%
DAX Index Germany 5,851.53 -124.95 -2.09% 5957.43 -1.78%
IBEX 35 INDEX Spain 11,709.00 -313.6 -2.61% 11940 -1.93%
FTSE MIB Italy 23,126.02 -579.65 -2.45% 23248.39 -0.53%
AEX Netherlands 336.3 -5.31 -1.55% 335.33 0.29%
OMX Nordic 40 Scandinavia 851.65 -14.27 -1.65% 829.44 2.68%
CAC 40 France 3,928.95 -80.72 -2.01% 3936.33 -0.19%
SMI Switzerland 6,586.53 -47.33 -0.71% 6545.91 0.62%


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Russia”s index on Wednesday lost about 1,5%, but in the next few days could return to growth
Dmitry Medvedev:d71Russia”s modern economy requires a workable system of technical regulation
U.S.: Investors can not ignore the news from China
Beltransgaz reported: Belarus is fully paid off with Russia in 2009
“Privat” raises prices at the gas station
UTair published operating results in 2009 year: Airline passenger traffic increased by 15,1%
Moldova has raised prices for gas, heat and electricity



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