Market news
07.08.2013, 10:30

European stock indices fell

European stocks declined moderately, which is fixed for the second consecutive session, after the Bank of England has provided a benchmark for monetary policy in the form of a threshold level of unemployment. Add also revised the Bank of England to raise their economic forecasts: 1.5% in 2013 and 2.7% in 2014 against 1.2% and 1.5% previously. The Bank of England will maintain its current level of rates as long as the unemployment rate / p reaches 7.0%, the target level and not trigger level for the rate increase.

Heads of asthma Carney said that Britain is in the middle of the slowest economic recovery in history, and that GDP will not reach pre-crisis peak until next year. As long as the employment does not reach the target level, the Bank of England is not going to expand the asset purchase program, but they are ready to buy more bonds, if need be. He said that 7% is the target level of rates b / d, it may be lower, but it corresponds to the current monetary policy. Carney also said that the Bank of England will link the level of the rate with the rate b / d of 7%. He also noted that "transparency policy" does not mean that rates will be low long period of time, it will depend on economic conditions.

Adding that the dynamics of trade continues to affect yesterday's announcement of the Federal Reserve Bank of Dallas, Richard Fisher, who is one of the most vocal critics of quantitative easing. He noted that the central bank is coming to a reduction in monthly purchases of bonds, the size of which is 85 billion dollars a month, and warned investors that do not rely on this promotion.

Moreover, he added that the financial markets may be too used to the Fed's policy, or hope that the central bank will ease lending after the fall of the market. Some expect that the Fed will hold back levitation markets for an indefinite period of time. This distorts the prices of financial assets and could lead to a serious misallocation of capital.

Stoxx Europe 600 Index fell 0.4% to 302.29.

The cost of Natixis SA fell by 4.03% to 3.78 euros, showing the largest decline for the month, after a report showed a 29% decline in profit for the second quarter.

Shares of Rexel SA (RXL) lost 5.3%, dropping to 17.94 euros after the largest shareholder sold a 10% stake.

The cost of Randgold Resources Ltd. fell 5.8% to 4171 pounds, after reporting a fall in sales and profits.

Shares of ING Groep NV (INGA) rose by 4.68% to 8.22 euros, while reaching a two-year high, after the quarterly report showed that the amount of pre-tax profits rose.

At the moment:

FTSE 100 6,536.78 -67.43 -1.02%

CAC 40 4,018.61 -13.96 -0.35%

DAX 8,240.8 -58.93 -0.71%


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