Swine Flu Pressure European Indices into the RED ZONE!!!

Daily Forex Fundamentals | Written by ecPulse.com | Apr 27 09 12:44 GMT |

Another Phenomena, a new week had started with a whole different concern emerged to dominate market movement known by the Swine Flu. Indices across Europe tumbled, dipping heavily into negative levels wasting part of the gain seen in the prior week. Travel stocks, Airline Stocks were the main to decline because citizens no longer want to move around the world unless a cure figured out. European Indices fell as off 7:58 EST, Dow Jones euro stoxx fell 1.55% reaching 2283.11 levels, the French CAC 40 lost 1.34% reaching 3061.39 and the German DAX lost 1.22% reaching 4617.50 levels. Nevertheless, the main concern in financial markets remain heading toward the protracted recession that had altered and transformed to the worst contagion the Europeans face since World War II. Yet a hassle is taking place between the ECB members, some believe that further rate cuts must take place and others believe only a twenty-five basis points taking the benchmark down to 1.00%. According to prediction recession will resume this year to extend further to the upcoming year, the European Central bank earlier predicted a 2.9% contraction in the current year yet the International Monetary Fund revised down their projections to 4.2% contraction this and 0.4 in the upcoming year. The worst Credit Crisis since the Great Depression had started in 2007 diffusing further through the years to leave the Euro Area in situation where a recovery postponed further into the year. Germany Europe’s leading economy that was highly exposed to what took place in financial markets is struggling with lower exports after demand was hammered badly across the globe. Though the weakness was not only seen in the levels of exports but imports got hit badly, the Import Price Index fell 0.4% on the month and 7.1% on the year, the falling energy costs form the unprecedented levels seen earlier increased pressures on prices. So according to expectations euro area consumer prices will be heading deeper near zero barrier with projections that it would be falling below zero temporarily. However, Confidence is improving significantly in the zone; the German GFK Consumer Confidence inched higher in May to 2.5% coming better than market projections 2.3% yet still as the revised previous 2.5%. The easing inflationary pressures are working to bolster in confidence in the area, where prices are becoming cheaper for citizens. If confidence reading continues to incline this means a recovery will be seen soon because investors and citizens will start to foresee the euro area as a safe place in to invest. From Italy, the Consumer Confidence Industrials surged in April above 100 barrier levels to reach to 104.9 levels coming better than the previous and market expectations 99.8. In addition, this improvement came as result for the easing prices, which is narrowing down the levels of expenses by individuals. Therefore, dear reader an improvement in the Confidence levels would be positive at the time being because it is spreading back homes in the economy, ensuring the fact that April would the turning points for the Europeans. Ecpulse disclaimer: The content of ecPulse.com and any page in the website contain information for investors/traders and is not a recommendation to buy or sell currencies, stocks, gold, silver & energies, nor an offer to buy or sell currencies, stocks, gold, silver & energies. The information provided reflects the writers' opinions that deemed reliable but is not guaranteed as to accuracy or completeness. ecPulse is not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trades currencies, stocks, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, stocks gold, silver &energies presented should be considered speculative with a high degree of volatility and risk