European stocks fall

May 2005

Posted by ReD as News

The images of the clashes outside the Parliament in Athens are the
around the world. Unfortunately, as
provided by this spreadsheet , we come to the test
the square, which rebels against the hard recovery plan defined by
government of George
Papandrea, the price of the aid package of 110
billion of the EU and the IMF. The demonstrations, along
Moody's announcement that,
as reported by Bloomberg, has decided to monitor the
creditworthiness of Portugal, during the first part
the day, but crushed the scales towards the closing
have succeeded in shaping losses.

The trend
of accessing

At the Milan Stock Exchange Ftse
Eb has sold a 27% and the FTSE All share the first, 36 percent. Madrid,
the center of rumors about the possibility of arriving to seek help
to deal with a deficit / GDP estimated in 2010 to 9.8% and
debt ratio to 72.5% in 2011, lost 2.1 percent. The child
Fall for Paris (-1.23%), Frankfurt (-0.7%) and London (-1%). Wall
Street, meanwhile, suffers the European news: the Dow Jones sells l0
0.2%, Nasdaq 0.6% and the S & P500 0.36 percent. Starting
session, however, was marked by the thud of the past and the
Heavy closing of Wall Street . Data GDP
Eurozone had lifted the spirits then there is a minimum
was the turning downward.

The Square
Athens

The Athens Stock Exchange, meanwhile, closed down by 3.91% after
got to be losing more than 5% on the day of the event
against the austerity measures adopted by the greek government in Athens, where,
according to the provisional budget, there were at least three deaths. Second
Some operators sales were triggered mainly by
and foreign investors have widened after reports of
tragic death.

Fear of
contagion and credit rating agencies

Weighed on scales fear contagion, particularly after
a statement by Moody's. Here, as happened with
Standard & Poor's rating agency, however, seemed to reach
delay in reporting the issue. Operators, in this sense, speak of a
lag-indicator, ie a move that comes after the event has already
occurred. On closer this approach should lead the market,
operators, not to give too much importance to such assessments.
However it is not. The ten-year government bond spreads
Portuguese and German securities similar rise, from 266
points to a record level of 310 points, on the other hand, the performance of
Bund falls to 2.84%, its lowest level.

Speculation
markets

Obviously speculation continues to play a role
important. The short positions, for example on the euro (but this is
could also apply on bonds or Greek or Portuguese
Spanish), many hedge funds have reached high levels. Without
consider, then, a tragic paradox.

The package of support that at this moment is hard
context, the market has already partly rejected. How to say:
sacrifice required Greece, the tragic developments that we see in
these monenti in the Greek capital, are in fact unnecessary. E
Why? Because the experts' forecasts indicate that Athens will not be
capable of fulfilling a prince of this plan: the
return to re-finance market in 2011. "If you cut spending
pubbblica-ragionanento is - if you reduce the spending power of
population, and in fact the aggregate demand slows even more
the already devastated economy of Greece. A trend that will not allow for
precisely meet the condition required. In short, it strikes
on a project that the already inadequate.

The securities
Square Business

The list of Milan stands in contrast to the trend Pirelli & C , in the wake of the financial information of the first
quarter and the demerger of the property announced yesterday.
Dramatic falls, however, the banking sector.

The weak euro

The euro slipped to a new low for over a year compared to
greenback, falling below $ 1.29 fee for the first time
since April 2009. The single European currency continues to serve the
fears of a contagion of the crisis sull'Eurozona Greek.