Bethel Finance: Shekel stable against dollar and euro

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Bethel Finance news:

The shekel is stable against the dollar and the euro in inter-bank trading this afternoon ahead of important macroeconomic data which will be published in Europe today.

The shekel-dollar exchange rate is up 0.13%, compared with yesterday's representative rate, to NIS 3.741/$, and the shekel-euro exchange rate is unchanged at NIS 5.009/€.

Yesterday the Bank of Israel set the shekel-dollar representative exchange rate at $3.736/$, up 0.24% on Monday's rate, and set the shekel-euro representative exchange rate at NIS 5.009/€, down by less than 0.01%.

On global markets, the euro is strengthening against the dollar at $1.342/€ following reports from Europe suggesting that two support mechanisms will be set up to help the debt laden euro zone countries. The markets are cautiously optimistic with European leaders scheduling a summit meeting for the end of the week in Brussels to discuss this option.

"European data to be published today includes the October output figures in Italy, the UK, expected to fall 0.3%, 0.2% respectively, and the output figures for Germany expected to rise 0.3%" said Mr. Cedric Marmet from Bethel Finance Ltd.

Barclays Capital analysts have lowered their growth forecast for China in 2012 from 8.4% to 8.1%, reflecting the lower demand entailed by a recession in Europe. This is far lower than China's 9.1% growth on an annualized basis in the third quarter of 2011.

Australia reported earlier today that its economy expanded by 1% in the third quarter, which was above the analysts' consensus of 0.8%. Nevertheless, this was still far lower than the 2.5% growth in the corresponding quarter of 2010 when there was major investment in mining.