Daily Market Reviews by MAYZUS.com

[MAYZUS.Neeraj]

16 October 2013: Fitch Placed The Credit Rating Of The US On Revision

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Each new trading day in the market within the last 2 weeks has begun with the hopes that the budgetary problems in the USA will be resolved, and congressmen will be able to agree upon insoluble questions. Congressmen, during their pre-conference time, manipulate on information that the prospect of the settlement of the current situation is very positive, and a necessary agreement will be reached shortly.

 

Again we are starting the new trading day with information that congress again, are having problems. The same goes for yesterday, when we were informed that the House of Representatives in the congress of the US postponed the vote regarding the last plan of the republicans. Additionally, the international rating agency 'Fitch Ratings' informed that it has placed a long-term rating of the default of the issuer of the USA in foreign and national currency "AAA" (the forecast being'negative') upon revision.

 

As a result, the american market reacted with a decrease after a few positive trading sessions. Asian stock markets are also falling this morning. The Dow Jones finished the trading session with a decrease of 0.87% traded on 15168.01 points, Nasdaq bargained next to the level of 3794.01 points having lost 0.56%, S&P 500 decreased by 0.71% reaching the level of 1698.06 points.

 

There is also a positive factor in all of this budgetary confusion - yesterday's news only convinced us more that the chances of the QE3 turning in the current year is practically impossible. According to Moody's rating agency, temporary dissolution of the government already reduced gross domestic product of the US by 20 billion Dollars. Business activity in the region of New York also falls in connection with low business trust: the Empire State index rolled down to 1.52 from 6.29, having noted a minimum level for the last five months.

 

Against all these events and, of course, inaction of the American government, the Dollar again couldn't strengthen its positions, and by the evening lost everything that it managed to gain throughout the day. EUR/USD currency pair has a big chance to return to the area of 1.36.

 

Copyright: MAYZUS Investment Company Ltd

[MAYZUS.Neeraj]

17 October 2013: The US Congress Saved The Country From A Default At The Last Moment

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Yesterday, the trading session past and waited upon the expectation of news from the USA, and as it was predicted - the decision was made at the last moment. The day ended up with the news that the Senate of the US almost unanimously voted for a temporary increase of the ceiling of the national debt and the renewal of financing of the government, and later at the House of Representatives the document was also approved.

 

Earlier the Congress of the US also voted for a law which resumes government financing until January the 15th 2014, and prevents default threat until February the 7th 2014. Now, only the final decision of the president needs to be obtained. However, Barack Obama already declared that he will sign the bill immediately. Thus, Washington kept it's firm traditions - rescuing the economy from a default at the last minute time.

 

Obviously the awaited news gave an immediate boost to the markets before closing, and we observed some kind of a dynamic rally. Dow Jones raised by 1.36% to the level of 15373.83 points, Standard & Poor's 500 increased by 1.38% to the level of 1721.54 points, and the index of high-tech industries Nasdaq Composite, went up by 1.20% and reached the level of 3839.43 points.

 

As for the currency market, we could not see any positive support for the Dollar, and so far the Dollar is continuing to weaken against other major currencies. Most probably the decision of the congress had been already included in the price. Now, after the solution of the question, comes the understanding of how much the politicians did harm to the American economy with all their disagreements. It is possible to expect a correctional kickback in the EUR/USD pair, with next purpose based on 1.36.

 

Copyright: MAYZUS Investment Company Ltd

[MAYZUS.Neeraj]

18 October 2013: Attention Of Investors Switched To Macroeconomic Statistics

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Following the results of the trading session, the indicator of blue chips Dow Jones Industrial Average went down by 0.01% to the level of 15371.65 points. The index of the wide market Standard & Poor's 500 increased by 0.67% to the level of 1733.15 points, and the index of high-tech industries, Nasdaq Composite increased by 0.62% and reached the level of 3863.15 points.

 

Data on industrial production and the number of constructions that had begun weren't published yesterday, but the weekly statistics on the number of primary requests for unemployment benefits showed a small decrease, from the reconsidered 373 thousand to 358 thousand, but nevertheless this decrease was weaker than the expected 335 thousand.

 

Yesterday, we had an opportunity to observe in the market a classical scheme "buy on hearings – sell on the facts". As soon as the US declared the decision, the markets ceased to support the American currency. As a result, the EUR/USD finished the trading day around the level of 1.3670, and GBP/USD – around 1.6150.

 

EUR/USD got good support, not only due to technical correction, but also in connection with news that the Chinese rating agency lowered the status of sovereign debt of the US from A to -A. The pair reached a minimum at 1.3515 then the announcement of the restoration of work of the American government was made, and thereafter the pair started to grow. As a result, the currency reached its maximum at 1.3675.

 

One more interesting development was observed in the Gold and Silver market. The most interesting point was that prices of Gold punched upward, a bearish corridor from 28th of August 2013. Considering that the cease government activity caused the US economic damage, the FRS, at the meeting at the end of the month, won't decide on a reduction of the program of monetary easing. In November, there will be discussions regarding Janet Yellen taking her post as the head of FED, madam Yellen will defend for certain adaptive monetary policy that will give support to Gold. This morning Gold is decreasing by 0.41%, having traded on the price of 1317.47$ per troy ounce.

 

Copyright: MAYZUS Investment Company Ltd

[vic84]

if crude gets close to $103 level then i think its going to hit 108 in no time........

[MAYZUS.Neeraj]

if crude gets close to $103 level then i think its going to hit 108 in no time........

 

Dear vic,

 

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[MAYZUS.Neeraj]

21 October 2013: Growth In The Stock Market Continues

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

The new trading week begins rather quietly and without any surprises after the weekend. On Friday, the American market continued to grow, the Dow Jones index increased by 0.18% reaching the level of 15399.65 points, Nasdaq added 1.32% and finished the trading week on a level of 3914.28 points, and S&P500 increased by 0.66% up to the level of 1744.50 points.

 

In general, this continuous growth can be described as having a bad effect on the economy of USA, while the politicians in Washington were unwilling to agree and solve matters. FRS will be compelled to prolong the repayment of bonds without the reduction of volumes, most likely, until February next year. Also we believe that today there will be signs of continuous growth.

 

Successful quarter results of a number of the leading American companies, are also giving indices the power to strengthen. Some of the companies which presented their quarterly results on Friday extremely surprised markets. Google reported growth of their quarter net profit by 36%, and for the first time the price of its shares exceeded the level of 1000 Dollars, having reached the maximum cost at 1011 Dollars.

 

As for the commodities market, Oil and precious metals prices are quite stable. This morning, Brent is losing just 0.08%, traded on a price of 109.85$ per barrel, Light is decreasing slightly more, traded on a price of 100.88$ per barrel and losing 0.23%. Gold and Silver are up by 0.52% and 1.39% accordingly.

 

Admittedly, despite the fact that the stock markets continue their growth, the American Dollar is under significant pressure for the last few weeks. Today, the EUR/USD currency pair is traded on a level of 1.3682. The upcoming week will be saturated with important macroeconomic statistics as public institutions of the USA resume work, and will backtrack by publishing the releases that were missed during the previous weeks. We will see figures on sales volumes in the secondary market of real estate, and bureaus of labor statistics will deliver a report on quantity of new workplaces and unemployment rate. The released data might have a significant influence on the further development of the Dollar.

 

Copyright: MAYZUS Investment Company Ltd

[MAYZUS.Neeraj]

22 October 2013: Investors Look Forward To Data On The US Labor Market

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

On Monday, the stock market of the United States finished the trading session with insignificant growth of the main indices, except for the index of blue chips. Standard & Poor’s 500 succeeded in retaining record highs, but investors were not ready to continue to push the index up further before important macroeconomic statistical data would be published today.

 

Yesterday data was published on sales of houses in the secondary market for September, and they were not too encouraging. August’s value was reconsidered towards a decrease from 5.48 million to 5.39 million, and in September it made only 5.29 million, when at the time the average forecasts of 5.30 million had been predicted. This fact also limited the purchasing moods on stock markets. The statistics on expenses on construction for August has still not been published.

 

By the end of the month reports will be presented which were not published during the period when all government agencies were closed. Today, statistics on employment and unemployment for September is expected.

 

Following the results of the trading session, the indicator of blue chips of Dow Jones Industrial Average went down by 0.05% to the level of 15392.20 points, the index of the wide market Standard & Poor's 500 increased by just 0.01% to the level of 1744.66 points, and the index of high-tech industries Nasdaq Composite, went up by 0.15% and reached the level of 3920.05 points.

 

European stock markets also finished the trading session quite differently. From the statistics, it is worth to pay an attention to the increase of industrial prices in Germany by 0.3%, when analysts expected growth by only 0.1%. From the corporate sector good news arrived from Philips, which showed a triple increase in net profit. However, DAX increased by 0.02%, FTSE 100 grew by 0.48%, and CAC 40 lost 0.21%.

 

Brent is traded on a price of 109.70$ per barrel, increasing by 0.05%. Light went below the level of 100.00$ per barrel, and is traded on a price of 99.39$, losing 0.29% this morning. Gold and Silver are stable at the level of 1316.10$ and 22.155$ accordingly.

 

Copyright: MAYZUS Investment Company Ltd

[MAYZUS.Neeraj]

23 October 2013: Statistics On The Labor Market Of The US Disappointed Investors

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Long awaited September data on employment disappointed participants of the market, having shown a gain which was much weaker than expectations. However, it helped to strengthen the opinion that due to such sluggish dynamics of the labor market, the FRS won't take the risk to displace the QE program.

 

The Ministry of Labour reported that employment in non-agricultural sectors increased by 148 thousand, when 180 thousand were forecast. In the press release, it was noted that growth of the indicator was observed in construction, wholesale trade, transportation, and warehouse sectors. Unemployment rate thus unexpectedly decreased to 7.2% from 7.3%. The average duration of the working week remained at the former level of 34.5 hours, but growth rates of an average hourly salary showed slower development - 0.1% against the expected 0.2%.

 

As a result, the indicator of "blue chips", the Dow Jones Industrial Average index, was closed in 0.49% plus on a level of 15467.66 points, the index of the wide market S&P 500 increased by 0.57% to the level of 1754.67 points, and the index of hi-tech companies, the Nasdaq, increased 0.24% to the level of 3929.57 points.

 

Despite positive development on the stock markets, we could observe that on currency markets volatility was off the scale, and the Dollar came under strong pressure. The Euro broke the important level of 1.37, and continued its growth, having reached a maximum at 1.3788. This morning, the currency pair bargains near 1.3767. Tomorrow the PMI index of the Eurozone will be published, if it will appear to be above forecasts again, it will only strengthen the determination of the currency pair to continue it’s growth. After the breakdown of the resistance level on 1.3780, the currency pair will direct to the area based on 1.3840.

 

Commodities are decreasing in price today. Brent and Light are losing 0.32% and 0.54% accordingly, Light went below the price of 98.00$ per barrel and is traded on the price of 97.77$ per barrel. Gold is traded on the price of 13336.78$ per troy ounce, losing 0.43% and Silver is down by 0.31% at the price of 22.72$ per troy ounce.

 

Copyright: MAYZUS Investment Company Ltd

[MAYZUS.Neeraj]

24 October 2013: Nine Day Rally In Europe Has Ended

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Yesterday, stock indices finished the trading session in the red zone. Weak quarterly results of a number of the largest companies, and also Mario Dragi's statement for the forthcoming stress tests of banks, became the main reason for the suspension of the nine day rally, the longest for the last 40 months.

 

Papers of the European banks were under strong pressure, reason for that being the speech of the head of the European Central Bank M.Dragi, who, during his press conference, stated rather rigidly that if the bank didn't pass a stress test, it would be bankrupted. This means that peripheral banks shouldn't count on help from outside. In November, the European regulator will begin a complex check of financial institutions. Any bankruptcy, even if it will be initiated by the government of the country, will promote sales of shares, especially in the banking sector.

 

The British FTSE 100 receded by 0.32%, the French CAC 40 lost 0.81% and the German DAX weakened by 0.31%.

 

Strangely enough, all these conversations had a limited impact on the EUR/USD. Analytics are stating that lately the Euro is in demand from Asian institutional investors, who are reconsidering the currency reserves and are slowly losing faith in the Dollar. The pair from the level of opening 1.3779, went down to a minimum of 1.3741, and this morning went through the level of 1.38 and is traded on the level of 1.3815.

 

US indices also moderately decreased, however, significant sales didn't happen. Following the results of the trading session, the Dow Jones index decreased by 0.35%, and the S&P500 by 0.49%. The Chinese Shanghai Comp. decreased by 0.2%, and the Japanese Nikkei fell by 0.6%, making them the outsiders of the day. In particular, it couldve been caused by the publication of preliminary data on the index of business activity in China, according to the HSBC version the indicator decreased to 50.9 points.

 

Today there will be one more chance to check what economy is recovering more steadily. Data on business activity in the manufacturing industry and in the services sector of the Eurozone and Germany will cause great interest in market participants. If business activity in both sectors will appear above forecasts again, demand for the currency pair will increase. In the case of the EUR/USD braking the level of 1.3780, the pair will direct to the area of 1.3840.

 

Copyright: MAYZUS Investment Company Ltd

[MAYZUS.Neeraj]

25 October 2013: Quarterly Reports Of Companies Continue To Please Investors

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Leading European and American indices grew yesterday by 0.2-0.6%, the increase being promoted by good corporate reports and weak statistics on employment from the USA. Investors see the macroeconomic indicators as confirmation that stimulating policies and the monetary easing program will be kept. Unemployment benefit figures in the US, which have shown a growth of the number of requests to 350 thousand, when only 330 thousand were predicted, is definitely an argument for sustaining the QE program.

 

In turn, reports of American companies continue to please investors. The report of Microsoft, published after the close of the trading session, affected the rise in price of company papers by 7%, during an electronic trading session. On average, the profit of 217 companies, which have already reported the last quarterly results for the S&P 500 index, have been better than market expectations in 77% of cases, profit being in 53%.

 

Commodities are weak again today. Prices of Oil rise slightly on Friday, but finish the week with an essential decrease. Brent is traded on the price of 107.05$ per barrel, increasing from yesterday by only 0.06%, Light is up by 0.03% at the price of 97.14$. Since the beginning of this week, Brent has fallen in price by 2.4%. The cost of WTI fell by 3.3%, that is the maximum decrease since June. Gold and Silver are losing 0.63% and 1.77% accordingly. The future contract on Oil of the Brent brand bargains at the price of $107 per barrel, WTI $96 per barrel.

 

In relation to the EUR/USD, the Dollar has again been under strong pressure and the pair could, from level of opening of 1.3774, move to a maximum on 1.3824. Nevertheless, data which was published yesterday has been rather inconsistent. Data from the Euro zone limited further movements. PMI in France in the manufacturing sector left below the 50 point level, and in the services sector , didn't fulfill forecasts. Indicators in Germany showed a similar dynamic. As a result, the pair was rolled away to the area of 1.38, but even after these disappointing figures the EUR/USD feels quite confident. However, if today's indicators of IFO will confirm a decrease, it will return the pair to the area of 1.3710.

 

Copyright: MAYZUS Investment Company Ltd

[MAYZUS.Neeraj]

28 October 2013: Meeting Of The FRS Will Become A Significant Event Of The Week

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

In the European markets, trading dynamics on Friday were rather different. Indices of the peripheral countries were decreasing. The Spanish IBEX 35 lost 1.01%, the Italian FTSE MIB decreased by 1.45%, and the others were bargaining without almost any change.

 

Last week was full of statistics, which were moving markets in different directions, due to the fact that the presented data had not been supporting any trend. The index of business climate of IFO in Germany in October, unexpectedly decreased for the first time in half a year, from 107.7 points to 107.4 points. In the US, the volume of orders for durable goods in September grew by 3.7%. Final value of the index of consumer confidence of Michigan university decreased to 73.2 points, which was below preliminary data and forecasts.

 

However, despite the statistics, the main American indices on Friday continued careful growth, having added about 0.4%. S&P 500 had just little to go in order to reach a new historical maximum, having increased by 0.44%, and traded on the level of 1759.77 points. Partly it was promoted again by corporate reporting.

 

The main event of the week will become the announcement of the results of the FED meeting. Nevertheless, from the American regulator nobody expects any changes in the monetary policy. Supposedly, the program of monetary easing will not change. Volumes of purchases of securities within the program of quantitative easing will be kept at the level of 85 billion a month. Since September, not enough data was published that was capable to change the macroeconomic picture in favor of the need to begin the reduction of monetary incentives. Moreover, the report on the labor market for October was slightly worse than expectations, which is an additional limiting factor.

 

Copyright: MAYZUS Investment Company Ltd

[MAYZUS.Neeraj]

29 October 2013: The Dollar Continues Insignificant Strengthening

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

On Monday, October the 28th, the stock market of the United States finished the trading session almost next to the zero levels. Following the results of the trading session, the indicator of blue chips of Dow Jones Industrial Average went down by 0.01% to the level of 15568.93 points, the index of the wide market Standard & Poor's 500 increased by 0.13% to a level of 1762.11 points, and the index of high-tech industries of Nasdaq Composite went to a minus for 0.08% and reached the level of 3940.13 points. It is quite interesting that the index of the wide market Standard & Poor's 500 is on the way to have the most advantageous year in a decade.

 

As for the macroeconomic statistics published yesterday, the data on industrial production for September increased by 0.6%, average forecasts of growth were 0.4%. However, it is impossible to tell whether this fact influenced the behaviour of investors, as all are absorbed by the thought that October events thus far removed the beginning of the turning of the QE program to next year.

 

In the commodity market, futures for Brent are losing this morning 0.48% traded on a price of 109.09$ per barrel. Light is down to 98.35$ per barrel, having decreased by 0.33%. Gold and Silver are up by 0.14% and 0.18% accordingly, traded on 1354.02$ and 22.58$ per troy ounce.

 

Trading in the currency market at the opening of week proceeded rather quietly. Publication of the retails of the US will become the main influencing factor for the EUR/USD today. Despite a delay in the publication, it will be interesting to see at what level there was a consumer demand directly before a political play. If the indicator will be quite weak, it will become one more reason for purchase. The pair could break the record of the recently reached 2 year maximum, on the level of 1.3831, and direct to the area of 1.3870, the level of which we saw last time in November 2011.

 

Copyright: MAYZUS Investment Company Ltd

[MAYZUS.Neeraj]

30 October 2013: The Whole World Expects Optimism From FRS Decisions

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

The American trading session ended by reaching a new historical maximum. S&P 500 updates it record the third session in a row, whilst NASDAQ is on a maximum level since September 2000. Again, weak statistics have been giving support to the markets, and were pushing indices to go up. Retails in the US decreased in September by 0.1%, when growth of 0.1% had been expected. The index of consumer confidence of Conference Board fell to 71.2 from 79.7.

 

It is natural that the published statistics are leading investors to buy more before the FRS meeting. The majority of participants of the market don't expect any changes in the volume of the quantitative easing program. It is also worth bearing in mind the prices of houses. The S&P/Case-Shiller index in August showed a rise of 12.8% in prices for residential real estate in 20 main city formations of the USA. The August price grew by +0.9% alone.

 

The Asian markets are also full of optimism. MSCI Asia-Pacific in Tokyo rose by 0.5%. Industrial production in Japan grew in September. This morning the Nikkei 225 grew by 1.03%, and Shanghai Composite adds 0.76%.

 

As for the commodity market, Gold is not moving, and seems to be waiting for the FRS decision. Quotations decreased on Tuesday, and this morning Gold is traded on the price of 1346.27$ per troy ounce, adding 0.06%. Even reserves of SPDR Gold Trust didn't change. Oil is also decreasing, the second day in a row, especially Light, having lost 0.44% and is traded on the price of 97.77$ per barrel. Brent is up by 0.12% at a price of 109.14$ per barrel.

 

Today, it is necessary to pay attention to the following macroeconomic events: unemployment in Germany, indexes of expectations and business climate in the Eurozone, the indicator of employment of ADP Services, data on consumer inflation in the US, data of the Ministry of Energy of the US on stocks, and consumption of oil and oil products. The main event of course, being the results of the FED meeting, which have been awaited by participants of the market for the last two weeks.

 

Copyright: MAYZUS Investment Company Ltd

[MAYZUS.Neeraj]

01 November 2013: Investors continue To Digest Results Of FED Meeting

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

The trading session finished with a small loss in the American stock market on Thursday, having decreased for the second day in a row. Dow Jones decreased by 0.47% and has been trading on the level of 15545.75 points, S&P500 fell to the level of 1756.54 points, losing 0.36%, and Nasdaq Composite lost 0.27% being at the end of the day on the level of 3919.17 points. The main influencing factor has been strong data on the Chicago index of business activity, as for some time now all statistics have been perceived by investors through a prism of prospects of the program of quantitative easing.

 

Yesterday, investors were waiting for the results of the FED meeting and now continue to digest the results of it, trying to find anything in the text which could outline when the QE-3 program will start to be reduced. A number of large western banks already changed their forecasts in this respect. For example, Credit Suisse considers that the volume of QE3 will be reduced not in March, but in January 2014, by $10 billion, and it is worth waiting for the full turning by September, 2014.

 

American news does not really seem to be bothering investors in Europe. Yesterday we could observe quite optimistic moods in the European platforms. The German DAX index finished the trading session at the maximum historical level on 9033.9 points, having shown an annual gain of 18.67%.

 

However, it should be stressed that the situation in the currency market and in particular, the situation with the Euro, strongly changed since the beginning of week. EUR/USD continued to suffer from correction of positions in connection with a difference of views of the national Central Banks on the further course of monetary policy. Macroeconomic statistical data which turned out to be quite weak, only increased uncertainty in relation to the Euro.

 

Undoubtedly, statements of Mr. Novotna also affected positions of the Euro. Earlier during the week he already managed to excite the markets with the statement that the decrease in the rate on deposits is excluded, and then it gave support to the Euro. This time he made a hint that the European Central Bank could again start to use LTRO operations in order to maintain liquidity at sufficient levels. The regulator really should have a certain plan of action on the future as the current economic indicators show that the process of recovery proceeds unstably.

 

As a result, the pair from the level of opening on 1.3733 came down to a minimum of 1.3583, having finished the day around 1.36. This morning EUR/USD pair continued it’s downward movement and is traded on the level of 1.35610.

 

Copyright: MAYZUS Investment Company Ltd

[MAYZUS.Neeraj]

04 November 2013: The Markets Open The Month Having Made A Good Start

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

The Dow Jones index raised by 0.45% to 15615.55 points, the gain in a week being 0.3%. The Standard & Poor's 500 index raised by 0.29%, having closed at the level of 1761.64 points, and having gained in a week only 0.1%. The Nasdaq Composite index raised by 0.06% to value of 3922.04 points, having lowered within a week by 0.5%.

 

On Friday, there was only one important macroeconomic news published across the USA, the assessment of industrial activity in country scales for the last month. The index of economic conditions in the production sphere ISM, counted by the Institute of management of deliveries of the USA in October, grew to the maximum value since April 2011, having reached the level of 56.4 points, when analytics were predicting a decrease to 55.0 points from 56.2 points, the month before. This result became a pleasant surprise, considering the situation we observed in October in connection with the threat of a default. It should be noted that this index, for the 5th month in a row, stays on a level above 50 points, which testifies the increase in the sectors activity. The positive wave of American industrial data was supported by higher than expected growth rates of industrial activity in China, in October.

 

The commodity market is stagnating and major commodities are showing a down going trend. The price of futures of Gold on Friday fell by 10.50 Dollars or 0.9%, to a value of 1313.20 Dollars per troy ounce. This morning, Gold is traded on a price of 1312.28$. Gold lost in price, due to essential strengthening of positions of the Dollar throughout a basket of world currencies, mainly at the expense of the EUR/USD currency pair. Factor in that the FED, in the final document of the last meeting, didn't exclude the possibility of a reduction of volumes of buying up of assets in the current year, has also been a significant influence in pushing Gold down. In total, Gold for the week lost 2.9%. Due to the decrease in the price of Gold, the world's largest gold-mining company, the Canadian Barrick Gold lost 7.1%, and the leader in the USA, and only a part of S&P 500 index, Newmont Mining, receded by 4.7%.

 

The price of Brent is on the level of 106.30$ per barrel this morning, Light is on the price of 95.11$. Oil fell in price to the minimum level since June the 21st, due to the strengthening of the Dollar, and continuous growth of its stocks within the last 6 weeks, according to data of the Ministry of Energy of the USA. Following the results of the 4th in a row unprofitable week, "black gold" suffered losses of 3.3%.

 

The upcoming week is the first week of the new month, and therefore will be saturated with the key macroeconomic releases, capable to have considerable impact on the development in the stock markets and dynamics of the currencies.

 

Copyright: MAYZUS Investment Company Ltd

[MAYZUS.Neeraj]

05 November 2013: Markets Move Depending On Published Statistical Data

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Yesterday, we did not see any essential changes in foreign stock markets. The American platforms on Monday were trading with volumes which were lower than average. Dow Jones increased by 0.15%, S&P 500 grew by 0.36%, and Nasdaq Composite added 0.38%. Support to the markets was given by R. Fisher's speech, where he negatively expressed his attitude towards political disagreements between republicans and democrats that led to the termination of financing of the budgetary establishments.

 

In the meantime, Asian platforms bargain in different directions.The Australian ASX200 is doing better than the others, which adds about 0.8%, supported by the news that Reserve Bank of Australia kept the interest rate at the current level of 2.5%. Chinese Shanghai Composite decreases by 0.4%. In the morning data was published on the index of business activity in the services sector according to the HSBC version, which in October grew to 52.6 points. The Japanese market, after a national holiday on Monday, shows sluggish movement, increasing by 0.1% in relation to closing levels on Friday.

 

It can be assumed that the trading session in the European stock platforms is going to pass rather quietly, due to the fact that there is not a lot of statistical data to be published today. Data of economic moods of the countries of the Eurozone yesterday showed traditionally good results. As it had been expected, the PMI index in the production sector for the region made 51.3 points, having confirmed an initial assessment. The indicator of economic moods of Sentix in November continued growth from 6 to 9 points, reflecting growth of business activity.

 

As to the important statistical data, today data will be published on the PMI index of Great Britain in the services sector and the Producer Price Index for the Eurozone, which shows a decrease in rates of growth since the end of 2011. In the evening there is also data being published on numbers of ISM Services PMI in the USA. Indexes for the non-productive sphere, most likely, will confirm today the high level of optimism reached within a year.

 

Copyright: MAYZUS Investment Company Ltd

[MAYZUS.Neeraj]

06 November 2013: Investors are Starting to Look on Facts and Figures

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

On Tuesday, the stock market of the United States finished trading session with a small decrease in the main indexes. After the two days growth of an index of the wide market Standard & Poor's 500, investors didn't manage to find motivation to push indexes to go up, quite good macroeconomic statistics didn't rescue the market from prevalence of bears. Let's remind that the index of economic conditions of ISM in the non-productive sphere in October increased from 54,4 to 55,4 points, whereas decrease to 54 was expected.

 

Participants of the market already overcame the first euphoria after the government of the USA found a compromise and now are starting to look on facts and figures. After a long suspension of work of government agencies in October and decreasing speeds of recovery of American labor market - the investment community has no full picture about state of the economy, and investors are starting to have doubts in, whether the growth of the indexes which we have seen during the last month has been logical.

 

The external background for the American trading session has been quite negative, as the European markets showed bear dynamics, and Asian platforms were traded in a different directions. Additionally to this more negative has been brought to the markets by comments of the Jeffrey Leker, president of the FRS of Richmond, who has told that the economy of the USA next year will grow only by 2%, then up till the events of October – forecast of to 2,9-3,1% has been predicted.

 

As a result, Dow Jones Industrial Average went down on 0,13% to level of 15618,22 points, the index of the wide market Standard & Poor's 500 decreased by 0,28% to a level of 1762,97 points, and the index of high-tech industries of Nasdaq Composite went to plus on 0,08% and reached a level of 3939,86 points.

 

In the commodities market, price for oil continue to fall. Yesterday price for WTI decreased to a price of 93,37$ per barrel and has been losing 1,3%. This morning, prices are recovering and Brent and WTI are adding a bit more than 0,5% bargaining on a levels of 105,90$ and 94,21$ per barrel accordingly.

 

We shouldn't forget that key events of the current week are going to be meeting of European Central Bank and a release of the last official data on unemployment for October from the Ministry of Labor of the USA. These events will happen on Thursday and Friday respectively, therefore today again activity in stock market will be lowered.

 

Copyright: MAYZUS Investment Company Ltd

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07 November 2013: Meeting Of European Central Bank And Draghi’s Conference Are Key Events of the Day

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Today, some of the key places in the economic calendar are occupied by the meeting of the European Central Bank on monetary policy, and the conference of Mario Draghi after it. This time, it may happen that the head of the Central Bank will prepare the markets for the possible decrease of the rate in December.

 

The point is that inflationary pressure in the Eurozone at the moment is on 4-year minimum levels, and continues to fall. If the fall is going to continue, it will start threatening the region with a deflation on a Japanese manner. The European Central Bank can't simply stay idle in such situations, and if the regulator will take a decision on further mitigation, it is going to have a significant impact on the Euro. At the moment, the support level is on a price of 1.3480, and it’s breakdown can direct the pair to the area of 1.34. The more we are going to receive positive data from the USA, the more possible it is going to be that EUR/USD will move towards the level of 1.32 within the next few weeks.

 

American stock markets showed inconsistent dynamics yesterday. The Dow Jones managed to reach a new historical maximum having increased by 0.8% reaching the level of 15746.88 points, supported by growth of stock quotations of oil and gas monsters, Exxon Mobil (+1.3%) and Chevron (+2.7%). Also the computer giant IBM (+1,3%) had some influence. At the same time Nasdaq decreased by 0.20% and finished the trading session on a level of 3931.95 points, S&P 500 increased by 0.43% reaching the level of 1770.49 points.

 

The Leading Index of the USA published yesterday, showed vigorous lifting by 0.7% having exceeded market expectations, and showed that there is no reason for concern regarding the health of the American economy, at least until the end of this year. In this context, the index of volatility of the American stocks, VIX, fell yesterday to 2-month minimum, having reflected very complacent spirit of investors.

 

Today, investors will be very cautious before the release of important data from the USA and the decisions of the European Central Bank and Bank of England alike. As a whole, investors expect weak data on gross domestic product and the labor market, which will promote further continuation of the program of quantitative easing in the USA up until spring next year.

 

Copyright: MAYZUS Investment Company Ltd

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11 November 2013: The Markets Stiffened On Uncertainty Where To Move Further

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

On Friday, on the stock market of the USA, we observed movement which was almost completely opposite to the movement witnessed by us on Thursday. The majority of liquid papers were growing, and the favourites were hi-tech companies. Dow Jones increased by 1.08% and reached the level of 15761.78 points. Nasdaq added in price 1.60%, and finished the trading session on the level of 3919.23 points, and S&P 500 added 1.34% and reached the level of 1770.61 points.

 

At the beginning of the trading day, the markets reacted with a downward movement because of the long awaited data published on the labor market, which showed significant growth in the last month. The number of new workplaces in the non-agricultural sector for October jumped up at once to 204 thousand, whilst the average forecast of the market assumed growth only on 126 thousand. Values in the last two months were reconsidered towards the increase in total on 60 000. Unemployment rate was recorded on a level of 7.3% against consensus forecast at the level of 7.4%. Even these statistics managed to push indices down, although during the day officials from the FED managed to calm them by giving promising speeches.

 

The morning trading session in Asia is not showing the same positive dynamics, the majority of local indices bargain in a minus, only the Japanese Nikkei adding more than 1% because strong data has been published on the account of the current operations of the country, which for the first time in four months showed surplus. It should be noted that there was a small decrease in the Chinese Shanghai Composite Index against, as a whole, quite good weekend data on industrial production - +10.3% against the forecast of 10%, and to retails - +13.3% against the forecast of 13.4%. It seems that investors stiffened waiting for results of the 18th congress of the Communist Party of the People's Republic of China, and didn't react to macroeconomic data.

 

The situation in the commodity markets is still quite weak. Brent and WTI are traded on a level of 105.32$ and 95.17$ per barrel accordingly, adding in price around 0.2%. Gold is below the level of 1300.00$ and is traded this morning on a price of 1286.22$, adding in price 0.13%. Silver is up by 0.33% on a price of 21.38$ per troy ounce.

 

Copyright: MAYZUS Investment Company Ltd

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12 November 2013: Markets are Reacting Only on Published Statistical Data

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

On Monday, the stock market of the United States finished trading session with the insignificant growth of the main indexes. There were not published any macroeconomic statistics in the USA yesterday; besides, in the country Day of veterans was celebrated, and banks were closed, as well as the market of bonds. Respectively, the trading volume at yesterday's session was significantly lower than the usual.

 

As a result of the trading session - the indicator of blue chips Dow Jones Industrial Average raised on 0,14% to level of 15783,10 points, the index of the wide market Standard & Poor's 500 increased by 0,07% to a level of 1771,89 points, and the index Nasdaq Composite added in price just 0,01% and reached a level of 3919,79 points.

 

As to the commodities market, then oil is continuing its downward trend. This morning Brent is losing 0,18% and WTI is decreasing for 0,29%, traded on a price of 105,99$ and 95,19$ per barrel accordingly. Precious metals are also losing in price, with gold traded on a level of 1280,45$ per troy ounce and decreasing for 0,05%. Silver is slightly more weak at a price of 21,18$ per troy ounce and losing 0,48%.

 

In the focus of the market this week are going to be speech of the future head of FED - Janet Yellen in front of Bank Committee of the Senate, and also the reporting of large American retailers. Quarterly report of Wal-Mart Stores Inc. is going to be published on 14th of November, Home Depot Inc will present results on 19th of November.

 

As for today, then in the second half of day will be published weekly indicator of sales of Redbook which considers sales volume of networks of large shops and hypermarkets in the USA. Moods in the American market are still quite optimistic, all the October’s data published so far can be considered quite positive and better than expectations.

 

Copyright: MAYZUS Investment Company Ltd

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13 November 2013: Investors Continue To Trace Comments Of Official Representatives Of FED.

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

On Tuesday, the American market finished the trading session with a small decrease. This week is rather quiet from the point of the publication of macroeconomic statistical data, so the participants of the market are digesting data published last week, taking profit and following speeches by representatives of different regulators.

 

Yesterday's comments from a representative of FED of Dallas, didn't deceive our expectations. He called recent data from the labor market "quite good", and emphasized that further stimulation of the economy every day bears more and more risks. At the same time, Kocherlakota devoted his speech to the weak condition of the labor market, hinting that it is still too early to speak about turning of monetary easing program. Also, attention can be paid to the speech of Fisher, even though he isn't the voting member of FOMC for the current year, he will acquire a vote in 2014. Today is the expected speech of Sandra Pianalto's, who also doesn't possess a vote in 2013.

 

As a result, the trading session in the US finished with the Dow Jones Industrial Average index losing 0.21% on a level of 15750.67 points, the index of the wide market S&P 500 went down by 0.24% to level of 1767.69 points, and the index of the hi-tech companies Nasdaq was closed with zero change on a level of 3919.92 points.

 

The European stock platforms yesterday also appeared to be under pressure from the corporate reporting, leading indexes lost around 0.3-0,6%. Asian platforms began the new day with a decrease, the news background is formed by China where they ended the 3rd plenum of the Central Committee of communist party. Investors estimated meeting results as unclear, prospects of the economy were presented without concrete steps on achievement of goals. The Chinese Hang Seng loses this morning around 0.9%.

 

Commodities are continuing to fall, even this morning prices for Oil and Gold are managing to win back a bit from yesterday’s losses. Brent is traded on a price of 105.99$ per barrel adding 0.43% and WTI is up by 0.39% at 93.89$ per barrel. Gold is at price of 1274.59$ per troy ounce and wins 0.26%, and Silver oppositely loses 0.06% and is traded on a price of 20.76$ per troy ounce.

 

Copyright: MAYZUS Investment Company Ltd

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14 November 2013: Indices Of The US Updated Historical Maxima On Yellen’s Statements

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Stock indices of the US updated historical maxima on positively apprehended reports on Macy's, and expectations of the continuation of monetary easing stimulus after Janet Yellen's appointment. As a result, the trading session in the USA finished with the Dow Jones adding 0.45% and being traded on a level of 15821.63 points. S&P 500 increased by 0.81% and reached the level of 1782.00 points, and Nasdaq added in price 1.17% traded on the level of 3965.57 points.

 

Such a strong, positive effect on the market was brought by vice-chairman of the FED, Janet Yellen, who is now considered as the savior of the American market. She considers that the economy and the labor market show growth, which is much weaker than the potential. Therefore, until the economy will gain strength, the FED will continue the stimulating policy. Respectively, "strong restoration is a necessary condition to start folding of not conventional measures of FED, as program of repayment of assets", as stated in the prepared text for her press-conference, which will take place tomorrow.

 

The reaction of Asia to Yellen's words was also very positive. MSCI Asia-Pacific grew by 1.2%. The Japanese market also received an additional incentive in the form of a preliminary estimate of gross domestic product for the III quarter. National economy grew by 1.9% at consensus of economists of 1.7%, but much more slowly than in the II quarter when growth rates made 3.8%. Nikkei 225 grew by 2.39%, and Shanghai Composite by +0.45%.

 

Another interesting and positive development was observed in the commodity market. Where Brent is increasing by 0.07% this morning, and reached level of 106.97$ per barrel, WTI is flat at the price of 94.48$. At the same time, Oil still appears under pressure of statistics of stocks in the USA. American Petroleum Institute reported that during last week, commercial stocks of Oil increased by 0.6 million barrels, stocks of gasoline decreased by 1.67 million barrels and distillates grew by 0.6 million barrels.

 

Prices for precious metals finally took revenge after continuing fall for a few days. Gold is up by 1.15 % and Silver by 1.79%, traded on the price of 1283.04$ and 20.81$ accordingly. It should be noted that Gold has ideas for purchase, namely mitigation of policy of the European Central Bank, and also the statements from the FED representatives that the super soft policy is still far from an end. Therefore it is quite obvious there will be some rebound on yellow metal.

 

In the second half of the day, investors and speculators will be guided by the character of statistics coming from the USA. Weekly data on the number of primary demands for unemployment benefits will be considered as the most important signal.

 

Copyright: MAYZUS Investment Company Ltd

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15 November 2013: Indices Continue To Storm New High's Supported By Yellen's Statements

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

One more trading week is coming to an end, and nothing has changed in the world economy, but the American and German stock markets continue to update historical maximum levels. At the same time, all developing countries firmly remain in the same position. Following the results of the week, we can again see that according to EPFR data, outflow from the Brazilian funds for the week made 442 million Dollars. Russia, for the same period, lost 225 million Dollars, however in China, on the contrary, there was an inflow of 308 million Dollars, and in India, an inflow of 28 million Dollars.

 

For the entire week, investors have been waiting for the press-conference of Janet Yellen, which took place yesterday and boosted markets up. Her debut on the Bank committee of the Senate of the USA was very optimistic, and expectations of a rather fast reduction of the program of monetary easing by FED, came to naught. Before the meeting of the FED in December, investors will hardly be afraid of anything.

 

Thanks to that, the American Dow Jones and S&P500 indices maintained yesterday their historical maxima, and the leader of growth in the equity market of the US was the financial sector. Following the results of the trading session, Dow Jones Industrial Average raised by 0.35% to a level of 15876.22 points, the index of the wide market Standard & Poor's 500 increased by 0.48% to a level of 1790.62 points, and the index of high-tech industries of Nasdaq Composite went to plus on 0.18% and reached the level of 3972.74 points.

 

It is quite clear that the risk of correction on the American platforms is now certainly very high, and every week it only grows, but before we are going to see any strong negative news, we are not going to see an essential decrease in America.

 

Commodity markets didn't miss the chance to gain some positive activity either, prices for oil went slightly up, and this morning Brent is adding 0.07% traded on a level of 108.36$ per barrel. Light is up by 0.28%, and bargaining next to the level of 94.67$ per barrel. Gold and Silver are flat on the levels of 1286.42$ and 20.72$ per troy ounce accordingly.

 

Amongst the last statistics to be published today, and where the attention of investors will be drawn, is to the indicators of industrial production in the USA.

 

Copyright: MAYZUS Investment Company Ltd

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traders should be cautious in going for AUD for a long period...

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18 November 2013: Dow Jones And S&P 500 Are Torn To Levels Of 16000 And 1800

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

On Friday last week, the main world stock indices showed moderate growth again, and increased in price. Most have been reacting to the published macroeconomic statistical data on industrial data in the USA, and Consumer Prices in Europe. Industrial production in country scales in October was reduced by 0.1% at the time, then an increase of 0.2% was expected. Some improvement was shown only by the manufacturing industry segment, of which volume of production in October increased by 0.3%, predicted at 0.2%.

 

However, statistical data didn't have an essential influence on the development on the stock exchanges, as the main growth driver was the speech given by the future head of FED, Janet Yellen, in front of the bank committee of the Senate of the USA. Having noted certain success in the recovery of the economy of the USA, Yellen labelled them as insufficient from the point of view of the economic capacity of the country, and stated fears concerning negative consequences at premature reduction of stimulating measures. Yellen also reported that she doesn't find excessively active growth of stock markets disturbing, and the emerging of obvious signs of "bubbles" on them will be eliminated by taking necessary actions.

 

Under these promises, the main stock indices of the US finished the trading session in a comfortable plus, Dow Jones and S&P 500 indices reached new record levels, and have prolonged the successful series for 6 weeks. The Dow Jones industrial average index raised by 0.54% to 15961.70 points, the Standard & Poor's 500 index raised by 0.42%, having closed the trading session at the level of 1798.18 points, and the Nasdaq Composite index raised by 0.33% to the value of 3985.97 points.

 

The price of futures of Gold is falling by 0.09% and is on a level of 1286.21$ per troy ounce. Silver is up by 0.12% on a level of 20.75$ per troy ounce. Gold practically didn't change in the price, despite a potential bonus in the form of essential weakening of the Dollar, as investors concentrated their interest more on slightly riskier assets. As a whole, precious metal cost in a week increased by 0.2%, having interrupted a losing series of the 2 last weeks.

 

The prices for Oil are decreasing, Brent is losing 0.37%, traded on a level of 108.10$ per barrel. WTI is down by 0.42% and is traded on a price of 94.09$ per barrel. Oil slightly increased in price, at the expense of the receded Dollar. Following the results of the 6th unprofitable week in a row, (such a long unsuccessful strip hasn't been observed since 1998), Oil suffered losses of 0.8%, owing to a continuous 8 week growth of its stocks in the US, and uncertainty of traders concerning the prospects of demand for energy carriers.

 

Copyright: MAYZUS Investment Company Ltd