Asian stocks rose on Tuesday after a moderate increase in major stock indexes in Europe and the United States on Monday on expectations that the SFR will announce additional incentives to support economic growth. However, the dynamics of the gold price, which has already exceeded the level of $ 1900 per troy ounce, confirms predominance of feeling pessimistic. September contracts rose today to its highest of all current - 1912.80 dollars. In the opinion of former President of the IMF, Johannes Witteveen, who headed the organization from 1973 to 1978, the crisis in global financial system has already exceeded the capacity of developed countries and requires creation of a new stability fund under the IMF . "The world financial system is threatened by a new crisis, which may have consequences more serious than the financial crisis of 2008," said Witteveen. While the European Central Bank and the Federal Reserve System in the U.S., most have already exceeded their capacities, a new fund may use foreign exchange reserves of China, Japan, Middle East and, say, Germany.
The U.S. economy is not going through its best moment: macroeconomic indicators have generated much concern on investors, resulting in lower than previous estimates in many reports published in recent months. Such is the case of the labor market, with an unemployment rate above 9%, the housing market, where prices are declining, and an economy that is growing very slowly, with a GDP growth for the second quarter of such only 1.3% and a downward revision of first quarter growth to 0.4%. Finally, the manufacturing sector also showed a slowdown from the previous year.
Given this grim picture, and amid instability in financial markets, the Fed met Tuesday to define new monetary policies and interest rates. The meeting decided to keep the benchmark interest rate at the current minimum levels until mid-2013. Investors awaited the implementation of a new incentive compensation plan, for the moment not apply but were dropped for the medium term.
We believe that once again will conduct an expansionary monetary policy by buying back assets (QE3), which could be implemented on the end of this year or early next year in order to inject liquidity into the markets, seeking to stimulate economic activity as well financial markets.
