FUNDAMENTAL REVIEW 17.09.12

"Celebration" in the markets will continue ...

 

After a rather unexpected Fed decision to start immediately stimulate the national economy the main beneficiaries will become the commodity markets and equity instruments of companies operating in these markets. Against this, even the news from Europe about Greece not puting down investors brave mood. Markets were waiting for QE 3 for suck a long time and now they won’t give up on their "conquests".

Athens desire to be in debt forever by not paying them slowly starting to dissappear. Lenders do not want to stretch the payments for the debts of Greece for many years, and therefore the Greeks have only 2-3 weeks to start to pay bills and reduce government spendings.

The decision of the Spanish authorities not to take help from the European Stability Fund, again making uncertainty, but markets do not want to take care about these events, because in general they are already in the prices.

 

As for the growth prospects of the single currency, it is likely to be limited, but the commodity currencies will receive substantial support amid new stimulus from the Fed. Australian, New Zealand and Canadian dollars will be good to grow, supported by rising commodity and commodity markets.

In the meantime, local dollar will weaken on all fronts.
 

Events today:

Moscow time

12.00 euro area balance of payments in July n / a; 10,9 billion euros to 12.7 billion euros

13.00 Eurozone trade balance in July n / a; 10,2 billion euros, 10.5 billion euros

16.30 Canada Foreign purchases of securities in July n / a; 11,3 billion; -7.89 billion

16.30 U.S. index of business activity in the industry FBI in New York in September n / a; -1,9; -5,9