9 while economists projected an increase of 0

The week began without great conviction in the markets. The only statistic of the day was disappointed: France industrial production fell in February by 0.9, while economists projected an increase of 0.3 in January. The performance of the OAT 2 years hardly reacted to the new: he finished the day up 2 points of 3.28. The announcement of the withdrawal of the CPE (first contract hiring), unsurprisingly, has not been direct reaction on the markets.

However, some economists see a negative signal. "Certainly, the withdrawal of the PBS signals the end of the challenge." But it also means that the Government is considerably weakened and that no reform will be implemented in France before the next elections, presidential and parliamentary, in the spring of next year, analyze the UBS economists. It is expected to total political paralysis in a time when the France need for reforms.

At the time, they believe that the hexagonal economic performance should continue to disappoint in the next few months. Short term, social movements in recent weeks have probably had a negative impact, with an effect on retail sales and industrial production, but which should be of short duration.

On the Exchange, the euro gave a bit of ground against the greenback, 1,2091 dollar later in the day, against 1,2112 dollar Friday night. The European currency nevertheless stopped the fall Thursday and Friday when Jean-Claude Trichet, Governor of the European Central Bank, had rejected the hypothesis, by economists, to an increase in the rate of the euro area in May.

Friday, the dollar also was supported by the employment figures in the United States, which argued for a continuation of the movement of the US Federal Reserve rate increase. As currency traders played for several weeks the offset of the cycles of monetary tightening and part of the Atlantic, promoting a rebound in the euro, the trend seems more indecisive.

Slight relaxation bond

Yesterday, no statistics has been published across the Atlantic. Stakeholders have had comments from Susan Bies, Member of the Council of the Federal Reserve monetary policy, to the tooth. Comments that were not much enlightened. Susan Bies said that interest rates are now close to an "appropriate level" on the evolution of inflation and the economy and that it is the day that must be assessed the need to continue to add the cost of credit. After fifteen movements of recovery since June 2004, the objective of federal funds is 4.75. At a time where investors wondered on the extension or non-cycle of tightening monetary indication is thin and economists continue to rely mainly on a rate of 5.25 at end of June.

At the time, bond markets, the trend remained hesitant. Rates themselves are slightly relaxed, while they are on their highest level since early 2001. Thus, the performance of the American loan to 2 years assigned 2 basis points to 4,885, while that of the 10-year loan dropped 3 basis points to 4,951. Finally, the gold spot price approach yesterday night the $ 600 an ounce to $ 599,60.