GUO Xiang-Mountain: Eastern Europe, how to choose the direction of the euro crisis

Yesterday's news:

1. The Dow Jones industrial average index closed down 250.89 points to 7114.78 points, or 3.4 percent, a record May 7, 1997 the lowest level since closing point. U.S. stocks after the opening bell, the Dow briefly rose, because the United States have reported that the Government is working with Citigroup Inc. (Citigroup) negotiations may holdings of troubled Citigroup shares. But the stock market then fell sharply, after which no improvement was mainly because investors are worried that those who did not receive such assistance may continue deep jeopardy, and those who receive assistance, government in the dividend and debt repayment are likely to give priority to other shareholders. Dow 30 component stocks, 27 have closed down. Citigroup rose 9.7 percent against the market trend, to 2.14 U.S. dollars; Another frequently become the object of nationalization speculation the Bank of America (Bank of America) rose 3.2 percent to 3.91 U.S. dollars; GM (General Motors) closed unchanged.

2. European leaders called for the International Monetary Fund (IMF) funds to expand to double to 500 billion U.S. dollars, help those who are already stretched to their limits are the European countries, there are new signs that Europe's former communist countries are sliding into overall crisis. Europe's developing economies are faced with 20 years ago in Berlin since the fall of the worst economic trauma. Capital is fleeing Eastern Europe, local currency exchange rate of the ensuing collapse, so that it is faced with production, employment serious landslides, as well as the substantial risk of bond default. Poland's industrial output in January the annual decline has been as high as 15%, Last week, the Polish Zloty against the Swiss franc fell to a historic low.

3. The EU Economic and Monetary Affairs Committee (European Union Economic and Monetary Affairs Commission) Almunia (Joaquin Almunia) Monday said that the forthcoming Group of Twenty (G20) summit in London will be the world's largest of these economies the government test. Almunia said that the introduction of response to the global financial crisis solutions extremely important.

4. Germany published the minutes of the meeting show that the European Group of Twenty (Group of 20, referred to as G20) leaders Sunday agreed on the need for all financial markets, including hedge fund products and other market participants to monitor At the same time, the need to reduce the maximum extent of any possible distortion of competition initiatives. Sunday, European leaders and members of G20 finance ministers meeting in Berlin in order to drive in the G20 summit in April before the stimulus plan, regulation and trade protectionism and other issues to reach a unified position in Europe.

1, 24 on Day 2 (Tuesday) Currency Analysis

The euro against the dollar (1.2778,0.0068,0.54%
Asia in early trading yesterday the euro against the dollar started to rise up to 1.2980 last Friday extension to continue rising trend in afternoon trading in Europe opened the market to wait for Jean-Claude Trichet, delivered a speech, Trichet said the current European crisis-ridden major organizations. Global Regulatory Reform in London in April are the Group of Twenty (G20) summit, the first question. European Union (EU) also is drafting a bill, the bill aims to introduce mandatory credit rating agencies register and the regulatory system, and in the next few weeks of hedge funds and private equity capital raised, this has been suggested to strengthen the financial system stable development avoid "financial predators" again to create the economic crisis!

Jean-Claude Trichet, in his speech yesterday that the crisis on the future of Europe did not specifically give the appearance of specific programs, which also suppressed the euro against the dollar, the rapid decline in prices, from the highest down 1.2980 to 1.2700 below, so that many investors a lot of single-stop ! Market risk sentiment again strengthened, and also led to yesterday, the euro fell against the dollar, while sterling and other European currencies down slow line!

Asia in early trading today to determine the euro, 1.2700 against the dollar today, concern, and its exchange rate if we can hold this price, many watch the market to maintain the mood of the euro will continue to support the euro rose, the euro may have once again risen to the top of 1.3000! Today, proposes to invest in short-term wait-and-see or watch many!

Euro support 1.3000 resistance 1.2530

Second, the foreign exchange market today important data:

Tuesday, February 24

07:50 Japan's monetary policy meeting minutes released ★

15:45 French consumer confidence index in February ★

17:00 Eurozone current account in December ★

18:00 euro-zone industrial orders in December ★

23:00 Bernanke speech, the United States ★ ★

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