Fundamental Analysis, February 09, 2011 2011-02-09

The major publications are expected today from the American macroeconomic sphere. The relative calm on the macroeconomic front is expected to continue until Thursday, when new unemployment data will be published. Jeffrey M. Lacker, the head of the Richmond Fed, has stated yesterday that the Fed should consider cancelling its 600-billion dollar quantitative easing program due to stronger-than-expected economic growth and improvements in the labor markets. Lacker expects growth of about 4% during 2011. According to him, this level of growth may increase the absorption of new workers and thus reduce the rate of unemployment.

As we said, the Chinese central bank announced yesterday that it would raise the interest rate in China in another attempt to rein in inflation, which stayed over 4% for the last three months running. This is the third interest rate hike since October and the second one in less than two months.

In Europe, the trade at the leading stock exchanges locked yesterday at index rises lead by the automotive industry, this after Toyota raised its revenue prediction for this year, and BMW reported a sharp increase in sales. By the end of the trading day, the London stock exchange climbed by 0.7%, the Frankfurt stock exchange climbed by 0.5%, while the Paris stock exchange climbed by 0.4%.

As trade closed at the New York Commodities Exchange, oil locked at a 0.6% decline to a level of 86.94 United States dollars for one barrel of oil, while gold locked at a 1.2% rise to a level of 1364 United States dollars for one ounce.

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