Analysis

	World Financial Market for the week of November 12th – 16th, 2007.

The shares of the banking sector suffered most. Some large European banks expect new losses from transactions with the derivatives connected with mortgage securities. Due to these fears the American Dow-Jones index, which was already going down to 13, 000 points, last week rebounded and  went up to 13, 380. However, at the beginning of the new week the close was at 12, 958, which raises concern.
The dollar rate fell against the Euro by the record 1.48 and against the Swiss franc by 1.1070.
In spite of this gold continued its correction from this month highs to 772 dollars per ounce. That’s almost a 76 dollars decrease (almost 10%) in two weeks.
Silver also returned to the more customary range and is being traded at about 14 dollars per troy ounce.
Crude oil is still being traded around the highs over 92 dollars per barrel for Brent, which was prompted by the resolution of the OPEC members not to increase the output rate. Moreover some participants openly stated the need to refuse from the dollar in favor of more steady currencies. So far this proposal is not discussed in earnest, apparently because it is too late. Furthermore the high output point fell for 2007. A further increase of the output without a sharp increase of the net cost is impossible and will result in even a greater increase of the price per barrel and to pre-term exhaustion of the crude oil fields.