06475 points while the Nasdaq dropped 1

The climate is definitely conducive to the stock market. A few days after the terrorist attacks perpetrated in Madrid, which showed that Europe was, she also vulnerable, investors started the week on news of the death of Sheikh Ahmad Yassin, the Supreme Leader of Hamas, killed at dawn in a targeted Israeli raid. Stakeholders, already paralyzed by the apathy of the market of work in the United States and disappointing data in Europe, now fear reprisals and a worsening of tensions in the Middle East. In the absence of economic statistics major yesterday, they were therefore not encouraged to purchase. A Wall Street, the Dow Jones had, at the close, a loss of more than 100 points for the second session in a row, assignor 1.20, to 10.064,75 points, while the Nasdaq dropped 1.57, to 1.909,91 points. European stock indexes were not better, as evidenced by the decline in the light of the Paris stock exchange index. The CAC 40 ended a down 2.05, to 3.539,22 points its lowest level since the beginning of the year.

"When the first phase of military operations in Iraq is completed, the financial markets wanted believe that the period of international tension open with the September 11 attacks drew to its close." But for observers with a broader perspective, it seemed implausible. "The instability was likely persist", explained yesterday Monument Securities Economist, Stephen Lewis, in his daily letter. For him, "the financial markets must necessarily take into account the geopolitical risk in their valuations."

The index of perception of risk calculated by CDC Ixis Capital Markets already was 45.8 Friday evening, an increase of 2.7 points on the week. Last Tuesday, it had exceeded the 50 points for the first time since end of March 2003.

However, being calculated on a slippery year, index suffers from effects of base higher after the strong tendencies to decline recorded last year by stock market volatility and credit spreads, noted CDC Ixis Capital Markets analysts in their weekly notes. The fixed base index, if he actually grew nearly 15 points over the past two weeks, is, for his part, below 30, "which allows to put into perspective the current crisis."

The Swiss franc, haven

In this context, the greenback was once more under pressure. Late afternoon, the euro is exchanged 1,2369 dollar, after a Tip 1,2401 dollar at the meeting, doped late morning by a trade balance unexpectedly surplus in January. The dollar also fell against the Swiss currency, safe haven in the same way as gold, which yesterday continued its ascent (see opposite).

Later in the day, the greenback was worth more than 1,2564 Swiss francs, against 1,2685 on the eve of the weekend. Only the Japanese currency has not benefited, now at 106,81 yen for 1 dollar its Friday evening level.

State bond yields are relaxed. The 2-year U.S. was 1,493, down 2 basis points, and 10 years was 3,741, down 3 points. The rate of the French OAT to 10 years, he assigned 2 points, to 3,892.

Now several sessions, stakeholders expect a gesture on the part of the Central Bank European, motivated by disappointing statistics and uncertainty caused by the attacks in Madrid. The Governor of the Bank of Spain, Jaime Caruana, said yesterday that it was too early to know the impact of the attacks in Madrid on the European economy. "There are no indicators that already give an idea of the impact on confidence", he said. Finally, for the President of the Bundesbank, Ernst Welteke, there is no reason to change monetary policy, liquidity is currently sufficient to ensure non-inflationary growth.