Market information

Thursday, February 11, 2010

Today the EU summit in Brussels will officially cover the long term economic strategy. However, the meeting is overshadowed by the turmoil of the financial markets. Greek bonds have been under pressure for weeks now and will heavily affect the Euro as investors have little faith in dealing with the Greek treasury problems.
 
Investors are counting on a support plan for Greece and will be disappointed if one is not announced today. According to the French newspaper, Le Monde, and the press agency Bloomberg, France and Germany are preparing a supportplan for Greece. Both countries want to prevent the problems to spread over the eurozone and affect the depreciation of the Euro. Yesterday the French president, Nicolas Sarkozy, had consultations with the German prime minister Angela Merkel.
 
The Federal Reserve is preparing to gradually decline the very broad monetary policy. This was announced yesterday by the president of the Fed Ben Bernanke. The interest rate will remain low, temporarily, but the Fed is using other instruments to stop the developments of depreciation.

The 6M Euribor equals 0.97% and the 10Y Swap increased with 1 bp to 3.44%.

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