The decision of ECB to decrease interest rate to 25% became a surprise for investors

Yesterday regulators of the Eurozone and the USA were bringing markets out of an equilibrium state. Trading session in the American stock market has finished with a significant decrease, Dow Jones came to end of the session with a decrease of 0,97%% having reached level of 15593,98 points, S&P 500 lost 1,32%% traded on a level of 1747,15 points and the biggest loser became Nasdaq, which lost 1,90%% and finished trading session on a level of 3857,33 points.

Optimism in the beginning of the trading session has been very quickly removed after the macroeconomic statistical data has been published. Strong data on gross domestic product of the USA in 3rd quarter, which has made 2,8%%, when only 2%% were predicted – pushed indexes down. The number of demands for an unemployment benefit in the USA last week decreased by 9 thousand and made 336 thousand, analytics were predicting 335 thousand. These positive data changed market expectations and again gave ground for the thoughts that FRS will start displacing the program of monetary easing quicker.

At the same time the European regulator stirred up the markets, having decreased the interest rate to 0.25%% and prolonged operations of refinancing on the fixed rate till 2015. The bank of England left the rate at former low level of 0,5%%, having kept the size of volume of repayment of assets as well at former level. Pumped up data on industrial output in Germany, the indicator decreased in September by 0,9%% when analysts expected growth by 0,2%%. As a result - DAX increased by 0,49%%, FTSE 100 decreased by 0,66%%, and CAC 40 lost 0,14%%.

Very few participants of the market have been expecting such an actions from the ECB that is why reaction of euro was so dramatic. As a result, pair from level of opening at 1,3521 fell to a minimum level of 1,3294, having finished the trading session around 1,3430. This morning EUR/USD is bargaining around 1,34073.

Today’s data on unemployment in the USA and quantity of again created workplaces (NFP) can seriously affect following development in the markets. Strong data will correct terms of reduction of QE-3 from FRS, which will strengthen pressure upon the superheated stock markets. Today also starts the 3rd plenum of Communist Party of China on which reforms of the Chinese economy will be discussed. This event can have serious impact on the commodity market.

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