The stock markets have paid in the euphoria

Restore confidence. It is the watchword of the two sides of the Atlantic. U.S. authorities have thus decided to fly to the rescue of the Bank Citigroup by injecting capital and providing a guarantee on its assets up to $ 306 billion. The new had a strong impact on financial markets. The stock markets have paid in the euphoria. In Europe, the DJ Stoxx 600 index offered a rebound of 8.44, to 197,51 points and main places gained about 10.

Wall Street has signed his side a second session of increase in a row. At the close, the Dow Jones rose 4.93, to 8.443,39 points, and S & P 500 of 6.47, to 851,81 points. The Nasdaq is awarded 6,33, to 1.472,02 points. The Bank values were at the party yesterday: Citigroup flew 57,82, after seeing evaporate 60 of its market capitalization week past (read also page 29). Bank of America jumped 27.2 and JP Morgan Chase of 21,39. The European financial compartment also amply benefited from the announcement of the rescue of us banking giant.

Injections of public funds

The presentation of the British fiscal stimulus plan has contributed to the rally. The United Kingdom intends to spend 1 of the gross domestic product in the recovery of its economy. Moreover, the President of the European Commission, José Manuel Barroso, spoke of "the need for a program to boost budget to support the application.

These strong signals have overshadowed the bad economic indicators, in particular the barometer of German business (IFO) climate. Investors returned to the defensive strategies that had dominated the last week. On the currency front, this has resulted a great resurgence in force of the euro or the pound sterling, while the yen appreciating when equity markets are shrinking, yesterday gave the field. The single currency rose to 1,2912 dollar, while it was against 1,2540 dollar to the last fence. The pound sterling is exchanged against 1,5126 dollar instead of 1,4768 the eve and the greenback was worth 96,49 yen against 95,35 Yen previously.

Abandoned State loans

For his part, State bond market, which serves as a refuge from the beginning of the crisis, was abandoned. Rates, which move in the opposite direction of bond prices, are strained: 6 basis points for the 10 years of German, to 3.4, and 10 points for the good of the same maturity, 3.29 Treasury. Rates are, admittedly, have fallen to levels very low these days.

Since the bankruptcy of Lehman, investors rush to liquid assets, clearly benefiting State obligations. But the question of the financing of Government plans haunts more minds. Operators try to quantify the surplus of bonds that the market will have to absorb in 2009 and which must logically affect their performance. Yesterday, the United Kingdom indicated that emissions would total $ 146.4 billion pounds, while the British Treasury partner banks projected $ 138.1 billion. This perspective has the effect to undermine the confidence of investors in sovereign debt. Yesterday, the cost of protection against default by the United Kingdom, measured on the market of CDS (credit default swaps") to 5 years, jumped to 88 points after the announcement, according to CMA Datavision. A historical record. Risk moves in fact of the sphere of business, banks in particular, to the States.