06 in session before limiting its resumption 3

"It is always darkest before the dawn." The stock market adage seems to be verified again. Pessimism prevailed on the eve of the weekend before the deterioration of the situation of employment in the United States was succeeded a euphoric week start on financial markets. By placing the two giants of the American mortgage refinancing Fannie Mae and Freddie Mac under guardianship, the administration of Washington gave a significant boost markets who were cruelly breath for long weeks.

Operators, who feared for the future of these two key institutions of American real estate system, objects of the most mad rumour, pushed yesterday a real "wow" of relief which resulted a strong rebound indices, especially in Europe, to the extent of degradation of the end of last week. In Paris, the CAC 40 (see page 19) thus bounced to 5.06 in session before limiting its resumption 3.42 at the end before a little more measured reaction of us markets. After winning up to 3.12 in the first minutes of rating, the Dow Jones index later had to moderate his rebound. At the conclusion, it was more "than" 2.58, proving that investors, once the euphoria of the first moments past, amounted to a little more weight.

If the rescue of Fannie Mae and Freddie Mac has lifted a major uncertainty in the markets, who feared to see the financial and real estate crisis deepen even before a possible failure of these two organizations, the situation is still not returned to normal. Indeed, the commitment of the US Treasury, who is willing to inject up to $ 200 billion in the two groups the time they are restructuring, should allow the mortgage, now moribund market to remake a health. So far, all the clouds which are gathered for months not to are not dissipated as if by magic and the operators, if they can possibly say the worst is over may, would be wrong to infer that the return to normal is now close.

Conflicting statistics

As long as the visibility on the economic cycle will be not improved to, it would be illusory to expect markets return to a sustainable bullish trend. The fact that the administration us or come to the rescue of Fannie Mae and Freddie Mac out probably the risk of new bankruptcy chain in the financial system in the United States, where a regional bank in Nevada, Silver State Bank, had yet to close last weekend. It is the eleventh who put the key under the door since early 2008 and the list institutions in difficulty, under supervision by the administration, has continued to lie, to contain not less than 117 names today its highest level since mid-2003. But measures taken for the two giants of the mortgage refinancing in the United States do not solve the other problems that emerged lately on the markets. Global growth concerns have been growing with the publication of often contradictory economic statistics.

Today, the stock markets are obsessed with the risk of an economic slowdown General but they fear even more pronounced on this side of the Atlantic. What might explain, according to the managers of JP Morgan Asset Management, that European actions have been more severely punished than their American counterparts.