Strong relief rally
continues in Asia
Global markets skyrocketed in Europe and US yesterday and continued in Asia during the night with all exchanges
in positive territory. Yen is record strong against the USD which is falling against all major currencies. Dow Jones jumped 2,86 % while the technology exchange, Nasdaq added 3,2 % and made October the best stock exchange month in US this year.
Better GDP figures from the US contributed ton the market relief after the EU presented its its package for Greece Wednesday night. The package involves a 50 % “haircut” of 50 % for banks having invested in Greek bonds
preconditioned that Greece follows up with continued tough austerity measures.
The exposed banks are asked to recapitalize, and need to present their plans for such recapitalization by December 25th. The EU emergency fund (EFSF) for sovereign debts and bankruptcy threatened banks are increased
to one trillion Euros. Negotiations have started with countries as China and Norway to contribute to the fund which represents the double value of the present Norwegian sovereign oil fund.
The latest turn of events have most observers to think that the worst in the stock markets are over for now and that the low index numbers from early October represented the bottom of the market. As a consequence of the latest developments USD has fallen against most currencies; oil and commodities are recovering. Euro/USD i s at 1.4181.USD/Yen trading at 75,88. Brent reached 112,50 and is at present 111,85. Gold has climbed to 1745 and Silver has made a strong recovery reaching 35,50 up more than 5 %.