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The ISIS attacks in Brussels was further proof that the ISIS is present and continues to threaten Europe. Immediately after the news of the...

The ISIS attacks in Brussels was further proof that the ISIS is present and continues to threaten Europe.

Immediately after the news of the ISIS attacks in Brussels, Belgium, all European stock markets were down. However, in the afternoon, the prices started to rise again and then they close slightly down.

Strangely, the declines have lasted for a short time, but in the evening it was as if nothing had happened.

Jim Cramer, analyst and editor for CNBC, said ‘the rest of the market managed to climb because there is a latent offer on the market since they were achieved the minimum in mid-February’. It was as if the market was waiting a terrorist act at any moment; as if they had become ‘part of the game’.

At the end of Tuesday’s session, the ISIS attacks in Brussels affected only airlines companies’ stocks and those linked to the tourism sector.

Two days later, the European Central Bank published an economic report showing a reduction of optimism about the improvement of the growth for the Eurozone economy. According to the latest ECB monthly analysis, in fact, a number of external factors continue to block the shot.

Another research of the ECB has also shown that the US economy is far more decisive than China for European trade.

The ECB says: ‘a 1% decline in GDP of China would have a 0.08% impact on Eurozone trade. The effect on European markets of a single change in US GDP will be 3 times larger’.

These observations come before the publication of the US Gross Domestic Product, to its final review. It was better than analysts’ expectations for the fourth quarter of 2015. In the fourth quarter of last year, the United States grew 1.4% compared to the same quarter last year, above expectations for an increase of 1% – as previously reported.

It seems that the improvements in the trade and consumption were the reasons for the upward revision.

The main concern in the latest revision of GDP is focused on corporate profits, which fell by -8.4% vs. -2.5% expected in the 4th quarter.

Also the preliminary Services PMI index in March rose to 51.0 compared to 49.7 in the previous result.

New requests for unemployment benefits remained steady at 265,000.

It was also thanks to these data that the US dollar ended a very positive week against the basket of major currencies in the Forex market thanks to the comments of some members of the Federal Reserve.

The workforce of the Fed is preparing the market to the next rise of interest rates sooner than the market expects. The next meeting of the Fed is scheduled for April 26 to 27.

The euro-dollar exchange rate was on course to score a weekly drop of 0.9%.

The Brussels attacks have also added pressure on the pound, leading to new lows on fear that British citizens may prefer to vote for a Brexit in June referendum.

 

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