A shock come to Dubai reminded markets that the risk has not disappeared. More than a year after the bankruptcy of Lehman Borthers, which has plunged economies in recession, the operators have become aware that a State could still fail. This awakening is translated by a sharp rebound in volatility on financial markets. Dubai is an isolated case or should we fear a domino effect The markets have already made a start of response. After their sharp drop, European stock indexes resumed a bit of height on the eve of the weekend, so that the correction on the set of the week remains limited.
Jean-Claude Juncker, who chairs the Group of Finance Ministers of the euro area, and Jean-Claude Trichet, the head of the European Central Bank (ECB), also provided that the countries of the European Monetary Union no risk of default. A way to respond to fears more vivid on the Greece.
Reassuring announcement
"We doubt that the difficulties of Dubai spread, also indicated some strategists Credit Switzerland. Dubai World commitments in foreign currency weigh 22 billion; Abu Dhabi collects annually from oil $ 50 billion and its sovereign wealth Fund represents $ 400 billion. "In other words, Dubai can be saved by his neighbour.
The announcement yesterday, the Central Bank of the United Arab Emirates, which has put the additional liquidity provision to consolidate the banking system, was also reassuring.
However, if concerns persist, the week is announcement of even more perilous two potentially destabilizing major appointments are in the program. Thursday, the ECB will explain the terms of what should be its last loans to 12 months operation, scheduled for 16 December. It is a significant step towards the exit of the device of crisis. Stakeholders expect including whether if this "auction" will be performed in conditions less generous than those in June and September. The future of other long-term refinancing operations, at 6 months and 3 months, also raises questions. Jean-Claude Trichet will no doubt pressed on the "exit strategy" Institute of emission, while the abundance of liquidity and historically low rates are one of the main support of financial markets. The ECB maintains no doubt the main interest rate to 1, the meeting of Governors.
The other highly anticipated by operators is the publication of the monthly report on employment in the United States, Friday. Currently, the market anticipates a stabilization of the rate of unemployment 10.2 per cent in November. Employment is crucial for the conduct of us monetary policy.
Earlier in the week, the Beige Book of the Federal Reserve, will already give guidance on the analysis of the economic situation of the American Central bankers. Today, Wall Street opens its doors for a normal resumption of quotations, after the truce of Thanksgiving. Volumes will expand markets, which will allow to better gauge the perception of risk. Friday, following Dubai, the VIX index strongly rose, reverting to its levels from the beginning of the month. US stock prices all fell on this demi-séance, the Standard & Poor's 500 comparably of 1.72.
Banks are under pressure for several weeksThe new budgetary law is the illustration They actually calculated that it cost themAdidas does however not gift to its new subsidiary9 public deficit you climb on the podium that the group is poised to launch in 2010On the contrary the inequality is ineffectiveContract new hires is poised to blow its first candleThe crisis has shown the dangers of too free enterpriseAnd that the bulk of the gains would not necessarily obtained in 2007
