9/28/10

Europe's stock exchanges were closed in different directions because of fears of debt crisis

Leading European stock indexes finished trading on Tuesday in different directions amid fears over worsening crisis in the debt market in the region and the weak statistical data on consumer confidence in the U.S. economy. This is evidenced by data exchanges. By the close of trading the British FTSE 100 index dipped 0.09% - up to 5 marks 578.44 points. The German DAX fell 0.05% - 6 278.89. The French CAC 40 index on the trading results has lost 0,10% and dropped to 3 762.35.

"We see growing concerns related to the peripheral countries of Europe, which deals with the banking sector - said to Bloomberg managing funds Storebrand ASA Ispen Fernes (Espen Furnes). - Investors have become a little more sensitive, especially after good growth in the market, which had previously been observed in September. "

Pressure on stock indicators Old World had concerns about the economic situation in Ireland. The country's authorities have this week to report the money spent to save the Anglo Irish Bank. According to statements by the authorities, this amounted to 22 billion euros. However, a credit analyst at Standard & Poor's Trevor Cullinan (Trevor Cullinan) believes that it can surpass even the previously predicted 35 billion euros agency that represents 20% of the GDP of Ireland.

On the background of such statements the cost of credit default swaps on the Irish two-year government bonds, which is essentially insurance against default of the country, increased to a maximum value of at least 2003.

Nevertheless, before sale in Europe took place in a weak positive territory on the background information that the European Central Bank (ECB) conducted an operation to buy government bonds from the market of Ireland. This was reported by sources close to the regulator. Earlier Tuesday, the Brussels online newspaper EUobserver reported that the ECB intends to activate a mechanism for emergency financial assistance from the EU to support Ireland.

In addition to the regional news negative impact on the trading floors of Europe has also provided statistics from the ocean. The index of consumer confidence in the U.S. economy in September fell to the lowest since February of this year marks 48.5% from the revised figure for August at 53.2%, while analysts polled by the information-analytical Internet portal dailyFX.com, predicted a decline index over the period only up to 52,1%.

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