Market information

Monday, February 22, 2010

Greece asked the other EU leaders for political support. To reduce the government debt of EUR 300 bln and the government budget deficit of 12.7%, Greece should be able to borrow money on the same terms as the other eurozone countries. According to the prime minister, the current high interest rate undermines attempts to tackle the deficit. Should Greece not succeed, other European countries with weak general government finances may follow and get into trouble.

With the increase of the discount rate of the Federal Reserve last week, the bank hopes to be ahead of over liquidity in the market economy. Investors see this as a sign of recovery, but there are also signs for a break in trend. Confidence indicators which increased last year, now decrease and the Congressional Oversight Panel, brought to live to keep an eye on the economical crisis, foresees problems on the real estate market as the biggest threat to recovery. Data of ING and SNS Reaal confirm a statement of Moody’s that the amount of default of payments on commercial real estate In the United States, increased most since the beginning of the crisis.

This week, a lot of business news will be published. Big AEX-funds like Heineken and DSM will announce their yearly figures. Today, among others TNT, Draka Holding and BinckBank will follow.

The 6M Euribor increased by 1 bp to 0.97% and the 10Y Swap also increased by 1 bp to 3.47%.

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