New panic wave rocks global financial markets, FB

The global financial markets yesterday, February 4, faced a new panic wave, caused by the so-called PIGS issue, Financial Brains director PhD Sveatoslav Mihalache has told Info-Prim Neo. The panic, according to him, affected not just the currency markets. In just one day, gold dropped by $50 to $1,050 an ounce, platinum by $61 to $1,500 an ounce, and oil by 5% to $72 a barrel of BRENT. This phenomenon is attributed to fears caused by the budget deficit woes still affecting a number of European countries, in particular PIGS – Portugal, Ireland, Greece and Spain. Analysts, however, think these decreases are rather a correction than a bullish trend reversal, meaning prices should soon move upwards again. “We could start talking about a trend reversal only when oil reaches the $65 mark and gold drops to $950”, says Mihalache. [EUR/USD] Obviously, yesterday's developments on the financial markets affected the European currency as well, making it hit last summer's low of $1.3670. The easiness with each the strong support level of $1.3740 was broken should be an alarm signal. If you are buying euros, proceed with caution. [USD/MDL] The central bank's direct interventions calmed down the market and returned the dollar to a normal trading pattern. The next few days it will be confined between 12.50 – 12.80 lei. Today bid rates will be 12.68 – 12,73 lei and ask rates 12.83 – 12.88 lei per $1. [EUR/MDL] Bid rates, unlike ask rates, will drop significantly, to 17.45 – 17.50 lei per €1. Concerning ask rates, the currency exchange facilities will display higher rates that the arithmetic one (approx. 17.60 lei) to avoid selling euros at a much cheaper price than they bought at the previous days. The predicted rates are 17.75 – 17.80 lei per €1. For more information visit www.fb.md or www.financialbrains.eu