Bernanke again turns

markets upside down

The American and Asian exchanges fall strongly after the Federal Reserve (FED) on Tuesday night presented the protocol from their last meeting stating that further quantitative easing (QE) is not needed for the time being.

The US-markets reacted immediately down. Dow Jones fall with 0,5 %. The Japanese Nikkei was down 1.82 %The negative trend has continued in Europe.

Where Germany is down 1,74 % with steep falls in France, England and Scandinavia as well. The Russian market (RTS) is for the moment falling with 2,17 %.

FED’s statement had an immediate effect on currency markets with a strong Dollar. The Euro has fallen to 1.3167 down from Tuesday’s high on 1.3342. USD/JPY is trading at 82.185.

Dollar is up against most currencies. Oil – and metal price have fallen as well. Brent is down one dollar to 124 and Gold has dropped 50 dollars from 1680 to 1630.

In his statement FED states that there would be no further credit injections into the market if the economy does not turn down dramatically.

Two of the FED members are, however, stating that it might be necessary with further incentives to get the economy moving.

FED sees no major changes in the US economy for the period 2010 – 2014.

The big car makers like GM and Chrysler are reporting a strongly increased sales the last months.

Toyota which was hard hit by the nuclear accident in Japan, also reports on strongly increased sales in the American market the first three months of the year.