A meeting of the European Central Bank helped to boost confidence in financial markets. As it was expected, the interest rate was not changed. Nevertheless, the ECB President Mr. Draghi in the press conference announced that “some indicators show preliminary signs of euro zone economy stabilization at a low level. “ That cautious announcement raises a hint of hope. Some confidence indicators have improved-such the signs were observed from public sources in January. The ECB statement makes us believe in recovery signs that, possibly, are not random. The ECB President also stated that the Central Bank’s help for banks is effective. Banks were using ECB’s a three-year loans. The latter loans, according to Mr. Draghi, have helped to stabilize the financial system and prevent the banks from insolvency. Mr.Draghi rejected the criticism that said the ECB did not issue loans to economy. Conversely, they did return to central bank in the form of deposits. Mr.Draghi stated that loans were given and deposits were put down by different commercial banks. It is clear that the banking situation is fragile and ECB loans will not revive the economy. ECB loan principal is to stabilize the financial system and only then to revitalize lending.

The fact the ECB policy helps to stabilize the financial system shows the most recent Spanish and Italian auctions. Yesterday, both countries succeeded in borrowing for bonds paying less than before. Easing of credit conditions allows commercial banks to buy bonds at a regional GIIPS cheaply from ECB borrowed money. In this way, commercial banks are encouraged to lend for Italy and Spain.

China companies‘ announcement of the results is rather exciting. Eleven companies have already published the results of annual profits. And it turned out that annual profits have increased by one-fifth on average. In fact, the annual profit rose by 38 percent last year. Today, the U.S commercial banking results will start publishing „JPMorgan Chase“. Very good results are expected from the most profitable U.S bank. Other U.S banks will announce their results next week. Is the U.S economy really resists the problems, will help assess the University of Michigan confidence index, which, presumably, is improved in January.