Stock indexes in Europe since the beginning of the year until mid-cap the year 2011 has declined between 6.5% to 25%. While the euro slipped 2.5% was recorded against the U.S. dollar in highly volatile trade.
While the level of bond yields on euro zone a sharp shot at the end of 2011 because investors want a high return for money loaned to the state-debt countries such as Greece and Italy.
"Trying to project where the dollar, euro, gold, oil or the stock market in the West will end next year is roughly equal to that happening at this time last year," said Howard Wheeldon, senior analyst at BGC Partners, as quoted by AFP on Monday (26/12/2011).
"Who could have imagined that 11 months ago we would be talking not only about the collapse of the euro zone but also the possible outbreak of the European Union?" he added.
"Who would think that in a short time, European countries will effectively stalled and the landing and the return of the growth outlook for virtually nothing?" Wheeldon imuh again.
Debt crisis in the eurozone has dominated the market sentiment during the year 2011 and is widely predicted to be the focus in 2012, at least at the beginning of the year. Another sentiment geopolitical factors and the fight for the White House, aka the U.S. Presidential Election.
The euro ended the year with slumped under U.S. $ 1.30 and went through its lowest point since early 2011. On Friday (12.23.2011), the euro recovered slightly and was trading at U.S. $ 1.3076.
But against the yen, the euro slumped to a point terandahnya in 10 years in September, as investors reacted to mounting economic uncertainty and falling stock markets in Europe and the U.S..
"The year 2012 seems to be dominated by the search for 'safe havens' in the forex market because the risk is present everywhere," explains lrich Leuchtmann, analyst with Commerzbank.
"The crisis threatens the euro zone debt continue to rise or at least become a permanent institution associated with the high level of uncertainty. Simultaneous global economy fell into recession or weak growth," he added.
"Seeing all these dangers, the U.S. dollar will probably turn into real winners," added Leuchtmann. Investments 'safe-haven' other after the U.S. dollar is the yen and gold.
Although the euro recorded its lowest point so far this year against the U.S. dollar, but in early May, the euro had penetrated its highest point in 16 months at U.S. $ 1.4940 as weak U.S. economic data as well as investors responded giving a bailout to Portugal's debt crisis.
"For 2012, the euro zone crisis seems to still be a major issue. Greece would seem to have failed to pay and other countries such as Italy will require a restructuring of debt," said Neil MacKinnon, economist at VTB Capital.
Among European stock markets, Milan bourse recorded the largest decrease by 25% since the beginning of 2011. Investors concerned about the possible bailout of Italy which is the third largest country in Europe.
While the FTSE 100 index fell 6.5% was recorded to the range of 5,500, down 15% Frankfurt, Paris and Madrid fell 18% down 13%.
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