Royalmaxbrokers: Monetary Authorities Again "Get Over The Case"

According to RoyalMaxBrokers , the trading session of the environment has become the best for US stocks since the beginning of 2012. Exchange indicators added more than 2.3% against the background of new signals regarding additional monetary easing from the heads of central banks in Europe and the US. All 10 sectors of the S & P500 and all the papers that make up the Dow Jones blue chip index closed in positive territory, and the ratio of growing and falling shares on the NYSE stock exchange was impressive 6.81: 1. Leaded the rally of oil and gas and financial companies, which in recent weeks have fallen in price more than others in recent weeks due to growing concerns about the slowdown in the global economy.

Despite a rather negative assessment of economic growth in the euro area, ECB President Mario Draghi stressed that he was ready for decisive action if the situation worsened further. He noted that some members of the Governing Council advocated lowering interest rates already at this meeting. Analytic department RoyalMaxBrokers interprets this statement as a hint that the rates will still be lowered to the historic minimum as early as next month. In addition, Draghi announced the expansion of the program to provide unlimited liquidity to banks in the form of three-month loans before the end of 2012. However, the third round of the long-term, three-year refinancing program was not announced: it is obvious that Draghi is not yet ready to remove responsibility for fighting the debt crisis from national governments. "I do not think it's right for the ECB to compensate for the inaction of other institutions," Draghi commented on the situation.

Initially, market participants were disappointed that the ECB remained inactive, but hints about the rate cut still supported the positive sentiment. RoyalMaxBrokers believes that the head of a number of federal reserve banks in the United States provided much support to the market . President of the Federal Reserve Bank of Atlanta Dennis Lockhart said that "it is necessary to consider further measures to stimulate the recovery of the economy", in case of a slowdown in GDP growth. The statements of the Fed Deputy Chairman Janet Yellen are even more decisive. "It may be appropriate for the Fed to hedge against unfavorable shocks ... It is necessary to implement extremely soft monetary policy for some time," Yellen told Prime Agency.

RoyalMaxBrokers notes that today may be marked by no less "heavy" statements: at 18:00 (Moscow time) with a traditional report before the Congress will make the head of the US Federal Reserve Ben Bernanke. It is in his words that market participants want to hear confirmation of their hopes for a new round of monetary incentives.