The victory of the socialist candidate for the French presidential election of Nicolas Sarkozy is the eleventh leader of the ousted euro area since the outbreak of the crisis and the implementation of austerity policies imposed by Germany and aimed at the curb. 

"I'm sure in many European countries Caa was a relief, a hope, that finally the idea of ​​austerity could no longer be inevitable "said Francois Hollande, in a speech at his election night.

"That's what I say as soon as possible to our European partners and first in Germany," he said.

Francois Hollande has been negotiating a pact designed to complement growth of the fiscal pact, signed in early March by 25 of the 27 countries of the European Union, a of his campaign themes. 

His election of Francois Hollande with 51.6% against 48.4% in the outgoing President Nicolas Sarkozy, argued that German Chancellor Angela Merkel does not lift all the political uncertainties that will last at least until the legislatures of 10 and 17 June

In Greece, the results of parliamentary elections confirm the expected scenario of a sharp fall in two main formations.

The conservative New Democracy and PASOK Socialists, who run alternately in decades, pay their support for draconian austerity measures taken since early 2010 in exchange for international financial assistance. 

SETBACKS FOR MERKEL

The breakthrough of the Coalition of the Radical Left hostile to the austerity and the entry of small parties in parliament, whose far-right "Golden Dawn", will make very difficult to find a majority and likely to fuel speculation about a renegotiation of the latest bailout plan or to an output of Greece in the euro area.

Fears deemed excessive by the economists of the investment bank Barclays Capital who point out that the Greeks remain overwhelmingly favorable to the euro but do not rule out political instability that would require the new elections later this year. 

"The risk is that non-European investors found a mistrust vis-à-vis the euro area rather marked," however, warns Philippe Waechter, an economist of the company ; Management Natixis Asset Management.

In Germany, the Christian Democrats (CDU) suffered another setback in losing the electoral state of Schleswig-Holstein region where the formation of Merkel saved her worst score since 1950.

The vote next week in the Land of North Rhine-Westphalia, Germany's most populous nation, will also be closely watched to assess the popularity of the policy conducted by the Chancellor and the accession of German voters to European solidarity. 

The partial municipal Italy, which will continue Monday, are a test on more than nine million voters, or 20% of the electorate, the government expert Mario Monti, again full cure austerity.

The first election of the post-Berlusconi give the measure of the distrust of the Italians against their political leaders to a year of parliamentary elections in May 2013.

The electoral cycle in May will end with the Irish referendum on the new European fiscal pact, already ratified by three EU countries including Greece.

SHORT RESPITE

After a short respite allowed by the injection of more than one.000 billion euros of liquidity between late December and early March by the European Central Bank, tensions on sovereign debt are quickly reappeared.

Investors are worried because of the growing political and social pressure against austerity plans which they fear above all that they do not favor a relapse into recession economies most weakened by the crisis and with them the entire euro area.

If Spain, officially fallen into recession in first quarter, is in sight, the gap between the wages offered by the sovereign debt of Germany and that of almost all ; other European countries has increased in recent weeks. 

European policymakers have however begun to recognize and formally accept a lesson of economic history that no country wants out of a debt crisis by focusing only on austerity, this strategy has always resulted in either a depression or a default.

From the European Council in January and more at the March, the EU officials had stressed the need to complement fiscal consolidation by "measures determined ; are to stimulate growth and employment ". 

They had then discussed several tracks, as a better mobilization of structural funds, a means of strengthening the European Investment Bank or the possibility of bond issues at European level in order facilitate private financing of major projects, referring to the definition of terms in June of that support growth.

The willingness of the new French president throughout his campaign to promote European growth initiative in this context had met with a favorable in both countries weakened ; s like Italy and the European Commission but also in Germany and even the European Central Bank (ECB). 

Its intention to renegotiate the pact budget has however met with strong opposition, especially from Germany who does not intend to return to the priority given to fiscal consolidation.

His call for a more active role for the ECB to stimulate the economy through lower interest rates or direct loans to countries in difficulty also faces hostility from Germany.

POSSIBLE COMPROMISE

Even before his election, Francois Hollande, however inflected speech suggesting that the renegotiation of the pact would be part of budget negotiations with its European partners. 

The president-elect has also been careful to avoid referring to possible Eurobonds, of which Germany does not want to hear because they would constitute a first step towards pooling of European public debt that Berlin rejects.

Francois Hollande now prefers to discuss project requirements, an expression consistent with that used by other heads of state and government of the EU.

A compromise is therefore possible, but the size and financing of a possible growth strategy remain unclear. 

A mounting tensions on sovereign debt would leave the ECB in the immediate front line but also exacerbate the pressure for a stronger commitment on his part to alleviate the costs of funding all States in the euro area and encourage growth.

If he felt that the euro area needed a "Growth Pact", the ECB president also stressed that support for the activity should not be detrimental fiscal discipline.

"Recent comments by Mario Draghi, defending the idea of ​​a growth strategy implemented by European governments is primarily a way to avoid a debate on the mandate of the ECB could be refocused on growth, "say the economists and Exane BNP Paribas.

French consumer spending fell sharply in March, largely due to lower energy bills, losing 2.9% compared to February, said Friday the National Institute of Statistics and Economic Studies ( INSEE). Consumption expenditure of households had jumped 2.9% in February as a result of the cold wave. Throughout the first quarter, they increased by 0.2%, after rising 0.3% in the fourth quarter of 2011, INSEE said in a statement.  

"The decline in spending in March was largely due to lower energy costs and, to a lesser extent, that of food expenditures," said the institute. Thus, food consumption was down 2.3% after two consecutive months of increases. As for energy, INSEE found a "return to normal + + after the cold snap in February."

Spending on durable goods rose in March (+1.5% after -0.9% in February). Throughout the quarter, they were down 3.3% after rising 2.7% in the fourth quarter of 2011. Despite a recovery in March (+2.3% after -0.5% in February), spending on cars down the entire first quarter (-5.6% after +4.4%). Similarly, those in home equipment increased slightly in March (+0.2% after -0.6% in February) but receding in the quarter (-0.9% after +1.3%).

The Dow Jones gained 1.41% or 181.19 points, to 12,986.58 points. The Standard & Poor's, wider, has advanced 1.38% or 18.86 points to 1387.57 points while the Nasdaq composite took 1.3% or 39.09 points to 3055.55 points.

The S & P 500 benchmark fund managers, rose above its 50-day moving average, as if traders felt the recent decline of nearly 5% as an opportunity to catch up with the performance of the index.

The S & P gained more than 10% since the beginning of the year.

The market did not consider the surprise hike in jobless claims last week to 380,000. Economists anticipated 355,000 claims. Some economists said the statistic is not very significant given the Easter weekend.

Bond yields in Italy and Spain fell after a strong demand during an operation launched this week by Italy.

"The decline in bond yields is a signal for investors, here, that things are not as bad as this in Europe," said Brian Gendreau, market specialists at Cetera Financial Group.

Traders also cited expectations of a pleasant surprise on the side of the figures of gross domestic product (GDP) of China, to be released Friday morning. Some are skeptical about this rumor.

"Chinese history is being misinterpreted. The Chinese government researcher who is supposed to have commented on China's GDP has talked about 9% GDP growth for all of 2012 and said he anticipated that 8.4 to 8%, 5% for the first quarter, which is in line with expectations, "said Peter Boockvar, equity specialist at Miller Tabak in New York

. The first results of companies have also published a good effect. Analysts say expectations may have been lowered too much and that the shares may now seem cheap and after the 5% decline that has just recorded the S & P. ​​

Alcoa has continued to benefit from the positive effect generated ; by its results. The value rose 2.7% after surging 6.34% on Wednesday.

Values ​​of raw materials have been sought. U.S. Steel gained 7.5% to 29.36 dollars.

Values, Hewlett-Packard jumped 7.17% to 25.09 dollars. According to Gartner, PC shipments rose in the first quarter thanks to a recovery in demand in Europe.

All economists polled by Reuters had expected the central bank does not increase its program of "quantitative easing" (QE) beyond the 325 billion pounds (394 billion euros ) previously announced.

Recent indicators, including the latest PMI figures released this week, seemed to reflect a rebound in activity after the contraction of the last quarter of 2011. 

But British manufacturing output posted its biggest drop in nearly a year in February (-1.0%), taking forecasters against the foot.

Industrial production, wider, however, remained on an upward trend, which should be sufficient to ensure an increase in gross domestic product in the first quarter after the contraction experienced in late 2011.

Economists now monitor the evolution of inflation, still above the 2% target of the central bank and that it could announce an extension of buyback program securities.

On the Nymex, crude for April delivery ended at 104.70 dollars a barrel, down 2.02 dollars or 1.89%.

In London, ICE Brent for delivery in April ended at 121.98 dollars a barrel, down $ 1.82 or 1.47%.

After the close of markets, prices continued to decline according to figures from the American Petroleum Institute (API) showing an increase of 4.6 million in crude inventories last week in the U.S. States, while the market was expecting an increase of 800,000 barrels only.

The official government figures (EIA) will be published Wednesday. 

Investors have also noted a breakthrough in the Iranian nuclear issue, which has somewhat eased fears of supply disruptions.

Iran will allow experts from the International Atomic Energy Agency (IAEA) to visit the Parchin military site, reported Tuesday the news agency ISNA. The spokesman of the foreign policy of the European Union, Catherine Ashton, for his part announced that the major powers were willing to resume talks with Tehran .

Over the whole week, the CAC 40 gained 0.98%:

* Values ​​BANK supported the coast, always carried by the second massive injection of liquidity to three years of the ECB, especially as their valuations remain low despite their strong rebound since the first of LTRO mid-December.

SOCIETE GENERALE took 1.34% to 25.395 euros, Credit Agricole 4.945% to 0.86 euros and BNP Paribas 1.50% to 37.915 euros. 

Dexia has won 5.32%, largest increase in the SBF 120, to 0.297 euro. Dexia Credit Local, its French subsidiary, launched a takeover offer for 700 million euros of subordinated notes issued in November 2005.

* Veolia Environnement won 4.74%, largest increase in the CAC 40, to 11.050 euros, having continued its flight after a gain of 14.86% yesterday in anticipation of a recovery group of utilities.

WestLB raised its recommendation from "neutral" to "accumulate".

Its major competitor SUEZ ENVIRONMENT has won 3.51% to 11.800 euros.

* Vivendi has lost 0.97% to 14.360 euros, the second biggest drop in the CAC 40 index, behind EADS (-1.43% to 27.650 euros). The title had already fallen by over 10% yesterday on the prospect of two turbulent years ahead. JPMorgan cut its rating to "overweight" to "neutral". Barclays, Cheuvreux, Deutsche Bank and Nomura have lowered their price target.

* AREVA has gained 4.73% to 20.020 euros, despite mixed results in 2011, after confirming its targets for the period 2012-2016 in a difficult global context.

* NEOPOST rose 1.77% to 52.420 euros after a turnover in 2011 better than expected and the prospect of further growth this year.

Gilbert Dupont raised its target price from 55.60 to 57.90 euros.

* IPSOS, lost 3.32%, largest drop in the SBF 120, to 26.170 euros, having continued to decline from the previous day (-1.33%) after a disappointing forecast operating margin rational 2012, of the order of 10%. Cheuvreux is no longer for sale.

* Technicolor has won 5.73%, largest increase in the SBF 120, to 2.305 euros, while Barclays raised its price target to 2.19 euros.

Sales of specialist technology consulting totaled 1,419.5 million euros last year, growing "economy" of 8.1% (on a comparable basis excluding the impact of exchange and changes in working days).

This publication dope title to the Paris Bourse, where the action is gaining 4.18% to 3.96 euros, shoulder to shoulder with Plastic Omnium top of the largest increases in the SBF 120 (+ 0.35%). 

"We are convinced and seduced by the strategy and decisions implemented by the new management group," says a note in CM-CIC Securities, the purchase value.

"Certainly, the current should not favor the rapid improvement of the fundamentals of Altran, but we believe that the work done by the new CEO of the group should begin to bear fruit in 2013, both in terms of operating performance and cash as corporate culture, "said the intermediary.

The fourth quarter alone, sales of Altran amounted to 370.6 million euros, increasing by 6% and an "economic growth" of 8, 6%. 

"Despite an uncertain macroeconomic environment, the Group is reasonably confident for 2012," he said in a statement its CEO, Philippe Salle.

Philippe Salle had told Reuters in October Altran, a deficit in 2010 would remain negative in 2011 but would profit in 2012.

The leader of New Democracy, one of three teams who sit in the national unity government led by Lucas Papademos, reiterated that his word was enough and that a written guarantee was unnecessary.

European leaders are concerned that the parties are reluctant to implement unpopular reforms before the elections on February 19.

Antonis Samaras has already announced that it was an absolute majority at the polls to renegotiate the terms of the European aid plan.Creditors are willing to block eight billion euros needed to Athens to avoid default next month.

Representatives of the European Commission, the European Central Bank and the International Monetary Fund (IMF) also met with former Prime Minister George Papandreou, leader of the Socialist Party (PASOK), which had no comment.

They should also meet Sunday with Georgios Katzaféris, leader of the far-right party Laos, the third member of the coalition.

"THERE WILL BE A SOLUTION"

In an interview with the weekly Sunday Real News, the leader of Laos suggests that it will sign a written undertaking.

"Do we need the money or not? If the answer is no, we do not sign.

In the title of his release, the U.S. initially said he found the note of Brazil to BBB-by the prompt correction. And for good reason, the note of Brazil was already at BBB-and the agency has in fact raised by one notch to BBB.

The IMF notes that the Director General intends to appoint Christine Lagarde Reza Moghadam, Director of the current strategy to succeed Borges, effective Thursday.