Market information

Thursday, February 25, 2010

Orders for manufactured goods rose 0.8% from November 2009 to December 2009 in the euro zone. The year on year rise was 9.5%. This rise was mainly due to a rise in the demand for machinery and other capital goods. The increase in orders for manufactured goods is attributed by economists to the declining euro, as compared to the yen and the dollar, in combination with a recovering global economy.

Both Standard & Poor's and Moody's have announced that they will reduce their rating of Greek credit in the near future. S&P said it will probably lower its BBB+ by the end of March and Moody's will lower its A2 rating in the coming months. The price of capital insurance on Greek debt for 5 years (CDS) rose 34 basis points to 384 as a consequence of these announcements.

The president of the Federal Reserve, Ben Bernanke, said Wednesday that the recovery of the American economy is not yet durable. Because of this Bernanke wants to keep the interest rate around 0%. Bernanke states that the recovery of the labor market is still frail but that the outlook for the future is positive.

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