The stock market of Europe fell from its high position of the last four and half years after the Italian market retreated to downgraded ratings due to the national debt. With the oil market declining with Saudi Arabia’s output, the metal market of China also trailed estimates in the industrial scenario.
The stock market of Stoxx Europe 600 Index had its drop by 0.3 percent at London, while the index of Standard & Poor’s 500 futures slipped by 0.1 percent. On the other hand, the 10 year security of Italy got its high to 4.64 percent. While copper dropped its position by 0.7 percent; zinc slipped by 1.5 percent in the London market. In this market scenario the West Texas Intermediate crude oil also fell from its highest position of last week.
It was after the closing session of the equity stock markets that the Italian Fitch cut debt rate in the month of March got the European Union geared up for the discussion and financial rescue terms of Cyprus. In the year 2009, China had the weakest market start where the sales growth of retail slowed down, as showed in the data of past two days. In the last seven months, the Dollar Index reached for its highest rank as reviewed by economists and analysts, thus showing the improvement in the sales scenario.
“I feel a sense that this market is going to expand itself in comparison to the possible threat of this economic system. Issues such as the Fitch Rating will be in use in the market for selling purpose.” states Yianos Kontopoulos, the head investment officer at Athens Eurobank Ergasias SA.
Since June 2008, Stoxx 600 has slipped from its highest level after getting a high of 2.3 percent in the last week. At the same time, ASA Storebrand got dropped by 8.2 percent after the largest insurance organization of Norway said that they will be elevating the count of money set aside in order to ensure better expectancy of life. ICAP, the largest global broker for inter banking transactions got its drop of 3.8 percent as the shares got downgraded to sell.
However the drop in the S&P 500 future showed signs that the US market will snap back at its highest since the year of October 2007. The index of Japan’s Topix saw progress of Honda Motors which got an upscale of 80 percent revenue, thus rising by 2.6 percent. It took a jump of 41 percent in the last 74 days as one of the highest rally since the month of November 1987.
The 10years bond of Germany measured by 1.50 percent, after it fell by three basis points. The value of euro changed little at $1.300 while yen stayed at 124.97.