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European markets: investors are not interested in Eurobonds

6 December 2007
Written by: webmaster Posted under Finance

On Wednesday, December, 5th, growth of quotations in the market of the European state bonds, which was observed from the beginning of current week, has interrupted. The increased interest of market participants to brave actives - to shares, which, on a background of the information, allowed to assume, that monetary authorities of the leading countries will take measures on stabilization of a situation in global financial markets and reductions in losses, which continue to carry the large financial companies in connection with August crisis in subhypothecary crediting market. On Wednesday the leading index of European shares Dow Jones Stoxx 600 has risen on 1,4 % - up to 368,49, index Standard and Poor’s 500 - on 1,1 % up to a level of 1478,75.
Data of macroeconomic statistics the eurozones, which have shown more significant, than it was expected, reduction in retails sector’s activity have maintained reduction in quotations of the European state bonds. Instead of expected reduction in volume of October retails on 0,3 %, the parameter has decreased on 0,7 %. According to the reconsidered data, in September sale in retail sector have grown on 0,2 %. In annual expression the volume of retails in October has grown on 0,2 %, whereas more powerful growth (1,2 %) was expected. On the reconsidered data annual growth of a parameter in September has made 1,5 %. Participants of the market have apprehended recession in sector of retails, as a signal to that crisis in the credit market has touched consumer charges’ sphere.
At the same time interest of participants of the market to English state bonds Gilts did not weaken during all trading session. Significant growth of quotations liquid Gilts maintained as the dataflow of the statistics, left in the Great Britain, and the message, that company Northern Rock Plc, specializing on delivery of hypothecary credits, can be nationalized. Besides, there was information that American monetary authorities are going to freeze of the rate under subhypothecary credits for five years.
 




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