Rus News Journal

The markets of Europe: investors lose interest to bonds

On Wednesday, on May, 26th, in the market of the European state bonds after a powerful pressure bulls which has led the day before to strong growth of quotations of all most liquid papers, sales have begun. Gamble concerning negative consequences of the Greek debt crisis and its further fermentation across Europe, have begun to decline. Therefore investors have preferred to protective actives more profitable actions that has led to rally in stock market and to reduction of prices on promissory notes of the European governments.

players selling bonds were confused at all with the information on decrease in consumer trust in Germany. Exciting all Europeans throughout last weeks the situation with debt crisis of Greece and its negative influence on restoration of all European economy has not left to German consumers of a choice. As have shown researches of Nuremberg institute GfK, the index of consumer trust (GfK Consumer Confidence) in June will decrease from a May mark 3,8 to 3,5 points (decrease to 3,6 points was predicted). Polls of 2 thousand citizens of Germany have shown their concern and proceeding decrease in a course of uniform European currency which for the last half a year in relation to the American dollar has fallen to 20 %, and possible decrease in rates of restoration of German economy. consumers are disturbed by the threat which has hung over process of restoration of economy of Germany, but also, they expect inflation acceleration. Therefore, being afraid of decrease in the real incomes, they reduce also expenses - economists GfK in the report mark.

expenses not only German consumers, but also their neighbours from France cut down. As acknowledgement of this fact the statistics published by national statistical bureau Insee has served. That Frenchmen do not hasten to increase the expenses, does not cause surprise: the indicator decreases the third consecutive time during the current year. However April reduction of expenses of the French consumers on 1,2 % has twice surpassed expectations (decrease on 0,5 %). The annual ascending trend of an indicator too was slowed down: in comparison with April 2009. Growth of consumer expenses has made 1,1 % whereas lifting on 1,4 % was expected. Certainly, anything good that at growing unemployment (the army of jobless Frenchmen totals 2,7 million persons) president Nicolas Sarkozy intends to increase pension age and to reduce a budgeted deficit, inhabitants of France do not wait. From here and aspiration to keep and postpone not urgent purchases till the best times.

meanwhile in business circles of France the mixed moods reign. As the statistics given by national statistical bureau Insee, on the one hand, confidence among the French businessmen has shown grows - in May the index of business trust (Business Confidence Overall Indicator) has risen from the reconsidered mark of the last month 96 to 97 points. At the same time the indicator of prospects of industrial sector (Business Confidence Production Outlook) has fallen from an April mark of 8 points to a minus of 3 points. (Own - Company Production Outlook) - with 6 the indicator of the volume of output expected in May by the companies has decreased to 4 points also.

a little more optimistical news have come from Great Britain where as show the data given by the British association of bankers (BBA), activity grows in a mortgage lending segment. In April the number of the credits approved by the British banks has increased with 35044 to 35729. In comparison with the period of one-year-old prescription the number of mortgage loans has increased on 15 %.

Thus, the auctions on Wednesday have shown that fears concerning crisis of a sovereign debt of the European countries have faded into the background, as, however, as well as not absolutely favorable economic news. Participants of the market have preferred to protective strategy purchase of brave actives, buying up them from levels of an eight-monthly minimum. Whether it was for a long time established similar a climate in the markets of Europe? Most likely, no. It is impossible to count on long neglect protective strategy in so times of troubles.

as a result of the auctions on the Wednesday, almost all most liquid debt papers of the European governments have decreased in the price. Following the results of trading session at the London stock exchange profitableness two-year bunds Germany would rise on 3. The item, and ten years` - on 7. The item the Spread them would extend with 210 to 214. The item

Results of the auctions by the state bonds of Germany at the London stock exchange at 20:00 Moscow time:

Results of the auctions by the state bonds of Great Britain:

Results of the auctions by the French state papers:

On Thursday, on May, 27th, in Germany the inflationary statistics, namely the data about tentative estimations of the prices of consumers will be published. According to expectations of analysts, the consumer price index (CPI) in May of current year will rise on 0,1 % in comparison with April and on 1,2 % in annual calculation. So will increase, under forecasts of experts, and the price index of consumers calculated under standards of an eurozone (CPI - EU Harmonised), both in monthly, and in annual expression.

in France the exit of the data about the indicator of consumer trust (Consumer Confidence Indicator) is expected. Experts predict indicator decrease in May from April level a minus 37 to a minus of 38 points.
department of the analytical information