Royalmaxbrokers: monetary authorities again "get down to business"

According RoyalMaxBrokers , trading session on Wednesday was the best for US stocks since the beginning of 2012.Stock indicators gained more than 2.3% on the back of new signals for further monetary easing by central bankers in Europe and the United States.All 10 sectors of the S & amp; P500 and all the papers that make up the blue-chip Dow Jones, closed in positive territory, while the ratio of rising and falling shares on the NYSE amounted to an impressive 6.81: 1.Rally headed paper oil and gas and financial companies, which in recent weeks have fallen in price more than others in recent weeks because of growing concerns about the global economic slowdown.

Despite the rather negative assessment of the economic growth in the euro zone, ECB President Mario Draghi said he was ready to take decisive action in the event of further deterioration of the situation.He noted that some members of the Governing Council were in favor of lowering interest rates already at this meeting.Research Department

RoyalMaxBrokers interprets this statement as a hint that interest rates nevertheless be reduced to historic lows in the next month.Moreover, Draghi announced the expansion of the program providing unlimited liquidity to banks in the form of three-month loans until the end of 2012.At the same time the third round of the program long-term, three-year refinancing was not announced: it is obvious that Draghi is not yet ready to take responsibility for fighting the debt crisis to the national governments."I do not think it's right to offset the ECB's inaction other institutions", - commented on the situation Draghi.

Initially, market participants were disappointed that the ECB continues to be inactive, but the hints in reducing rates still supported by positive sentiment. RoyalMaxBrokers believes that the market had a lot of support statements by the heads of several US Federal Reserve Bank.Atlanta Fed President Dennis Lockhart said that "it is necessary to consider further measures to stimulate economic recovery," in the case of slowdown of GDP growth.Applications Fed Vice Chairman Janet Yellen is even more decisive."For the Fed may be appropriate to insure against adverse shocks ... necessary implementation is extremely loose monetary policy for some time," - reports the words of Prime Yellen agency.

RoyalMaxBrokers notes that today can be noted by no less "heavy-weight" statements: at 18:00 (MSK) with the traditional report to Congress made US Federal Reserve Chairman Ben Bernanke.It was in his words, market participants want to hear confirmation of his hopes for a new round of monetary stimulus.