PESSIMISM OF THE MARKETS THIS WEEK

PESSIMISM OF THE MARKETS THIS WEEK

This week from 9^th to 13^th of July starts with Asian shares and the euro dropping on early Monday as slow U.S. jobs data.

The U.S. government reported last week that only 80,000 jobs were created in June, the third straight month of weak hiring, also reported that unemployment rate was unchanged at 8.2%. Also the inflation in China is deepening worries about slowing global economic growth and reinforced risk aversion ahead of a meeting that will define the path to Europe's banks.

Euro currency fell to a two-year low of 1.2225 in early Monday Asian trade, meanwhile  other commodities linked such as the Australian dollar and the New Zealand dollar that usually indicative of risk appetite, hit one week lows.

After pumping money last week, the ECB will have no other option that to inject even more money to generate dynamism in the Euro zone. Mario Draghi said on Thursday that besides the reduction of the 25 basic points, there was not room for any more measures but analyst of all sectors are referring a slow demand on the effective credit, what makes that the measures taken have minimum effect on the economy.

Analyst forecast a new reduction in the interest of 25 basic points to a 0.5% before the month ends.  This growing disillusion over Europe will dominate markets sentiment in the coming week, with equity investors expecting new company reports.