Daily Market Reviews by MAYZUS.com

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19 November 2013: Investors Started To Doubt Correctness Of Growth Of Stock Indices

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Yesterday, the stock market of the United States finished the trading session with a moderate decrease in the main indices, and the index of blue chips Dow Jones Industrial Average exceeded for the first time to a level of 16 000 points. The Standard & Poor's 500 index, in turn, during the session, exceeded a level of 1800 points for the first time. Investors started to have concerns related to the ability of the markets to continue its rally up.

 

Following the results of the trading session, the indicator of blue chips Dow Jones Industrial Average raised by 0.09% to the level of 15976.02 points, the index of the wide market Standard & Poor's 500 decreased by 0.37% to a level of 1791.53 points, and the index of high-tech industries of Nasdaq Composite went to a minus on 0.93% and reached a level of 3949.07 points. Nasdaq lost much more than the other indices, because the IT sector has been under strong pressure. In particular, Facebook and Twitter lost more than 6% of capitalization.

 

The Asian markets, following the American session, bargained without essential dynamics. The index of the industrial companies of continental China in Hong Kong, again showed an increase over 1.00%, and for three trading sessions already grew by 10.00%. Meanwhile, statistics were published which showed that growth of volume of direct foreign investments in China slowed down to 5.77% in October, from 6.2% in September. In Japan, on the contrary, the market appeared under pressure because of strengthening of the Yen, which is more expensive again and is on a level over 100 Yen per Dollar. Nikkei 225 closed the trading session with a decrease of 0.25% at a level of 15126.56 points, and Chinese Shanghai Composite lost 0.18% reaching a level of 2193.13 points.

 

The commodity market in many respects ignored the Chinese positive because of a proceeding rise in prices for real estate in the country. Growth in October on average made 8.78% in annual expression which could become a reason for the next drastic measures in monetary policies. Gold again decreased in price, this morning winning a bit back, adding 0.13% and traded on a price of 1273.91$ per troy ounce. Reserves of SPDR Gold Trust decreased by 4.2 tons to 864.51 ton. This is the lowest value of reserves of fund since February 2009, when incentives of FRS only were expected. However, the price for the metal at that time was much lower, in the range of 900.00$ - 950.00$ for troy ounce. Brent was down by 0.38% at the price of 108.06$ per barrel, WTI is down by 0.15% at level of 93.54$ per barrel.

 

Today current conditions and economic expectations of ZEW of Germany, and Employment Cost Index in the USA are going to be published.

 

Copyright: MAYZUS Investment Company Ltd

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20 November 2013: The Markets Are Captured By A Wave Of Profit Taking

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Tuesday’s trading session ended in the red zone. Investors are gradually preparing for two key events of the current week – statistical data on retail sales, and the protocol of the last meeting of the FOMC. Whats interesting, is that the results can have multidirectional impact on the direction of the Dollar, and it is not clear which one of these releases will have a bigger influence.

 

The last report on retails showed a decrease in the consumer demand, many aspects confirm that this time markets could be disappointed. Published reports of Redbook on activity of buyers in shopping centers, showed that sales slowed, and retailers should fight for each buyer. Researches of Bloomberg agency already prophesy that the current season of purchases could become the most low-active since 2009. So, if data on retails is going to be really weak, even the positive spirit of representatives of the FOMC regarding the last meeting won't be able to return belief in the USD.

 

Meanwhile, the Euro won’t be able to use the situation with the weakening Dollar for it’s benefit, if the PMI and IFO data will also confirm that growth rates in the largest economic system of Europe decreased. If PMI and IFO data show the same, the couple should give everything earned lately. As for today, the closest level to break is based on the area of 1.3550, the next purpose is located in the field of 1.3590.

 

Going back to the American session, following the results of the trading session the indicator of "blue chips" the Dow Jones Industrial Average index was closed in a 0.06% minus on the level 15967.03 points, the index of the wide market S&P 500 went down by 0.20% to the level of 1787.87 points, and the index of the hi-tech companies Nasdaq receded by 0.44% to a level of 3919.92 points.

 

Prices of commodities in the commodity market remain weak. Brent is on 107.11$ per barrel, WTI on 94.21$ per barrel, gaining 0.17% and 0.34% accordingly. Gold is flat on 1273.53$ per troy ounce, and Silver is increasing by 0.35% traded on a level of 20.40$. Since the beginning of the year, quotations of Oil fell by 4%, Gold on 24%, Silver on 33%, and Platinum on 8%. Prices can be restored only if the world economy is going to lift up, and not the solution of the Chinese plenum on the reforming of the economy. Results of reforms will be shown only in years to come, and now, for example, Oil lowering factors are restoration of export of Oil from Libya, and a possible exit of Oil from Iran to the world markets as a result of weakening of sanctions.

 

Copyright: MAYZUS Investment Company Ltd

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21 November 2013: The minutes of FOMC damped an ardor of the markets

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

On Thursday, the American market finished trading session with a moderate decrease. If at the beginning of the session we could observe speculative purchases supported by published data on inflation and Ben Bernanke's "soft” comments, after an exit of protocols of last FED meeting - market handed over positions and went to a minus. In the protocol of the last meeting of FED was stated that the Central Bank expects improvement of a macroeconomic picture, which in turn gives the grounds for reduction of the program of quantitative easing. The president of FED of Saint Louis, James Bullard, in his speech also noted that the question of reduction of monthly purchases is already in the agenda of the meeting in December.

 

The macroeconomic indicators which have been published yesterday were of the mixed character as well. On the one hand consumer inflation made 1,7% that below a target rate of inflation required by FED, and sale of houses in the secondary market decreased by 3,2% to 5,12 million, but on the other hand, retails showed growth by 0,4% at average expectations of 0,1%. Production stocks increased by 0,6% at average forecasts of 0,3%.

 

As a result, the indicator of "blue chips" the Dow Jones Industrial Average index decreased for 0,41% to a level of 15900,82 points, the index of the wide market S&P 500 went down for 0,36% to level of 1781,37 points, and the index of the hi-tech companies Nasdaq receded for 0,26% to a level of 3921,27 points.

 

Commodities also continued to fall, price of oil is decreasing this morning for 0,34% on Brent and 0,30% on WTI traded on 107,69$ and 93,57$ per barrel accordingly. Gold and silver are significantly down, with gold losing 0,93% at level of 1246,29$ and silver down for 0,85% at price of 19,89$ per troy ounce.

 

From the statistics which is going to be published today it is worth paying attention to the PMI indexes in production sector and sector of services of the Eurozone and Germany in particular, and production PMI in the USA. Also will be published data on primary requests for an unemployment benefit in the USA, and the bank committee of the Senate of the USA will vote for Janet Yelen's candidate as the new head of FED in the USA.

 

Copyright: MAYZUS Investment Company Ltd

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22 November 2013: Positive Statistical Data Is Pushing Quotations Up

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Yesterday was a very saturated day, published statistical data wise. Macroeconomic statistical data from China in the morning did not bring many positive's to the market. Data on business activity in the industries calculated by HSBC bank in November decreased by 0.5 points from the level of the previous month, and made 50.4 points.

 

Results in Europe were much more positive. Presented preliminary data on business activity in the manufacturing sphere in the Eurozone, made 51.56 points, which completely coincided with expectations of experts. In Germany, the index reached a level of 52.5 points, when 52 points were predicted. Also, today PMI preliminary results were published for the services industry, the indicator in the Eurozone made 50.9 points at a predicted 51.9 points, and in Germany, 54.5 points, whereas 53 points were expected.

 

In the USA, the number of primary requests for unemployment benefits was presented. For the last week, 323 thousand were recorded against an expected 335 thousand. The previous value was reconsidered from 339 thousand to 344 thousand. The price index of producers in October decreased by 0.2%, but it was not a surprise for participants of the market. The worse development was observed in the Fed Manufacturing index of Philadelphia, whereby the index in November made just 6.5 points, at an expected 15 points. Market indices of the USA in the first half of the auction grew up.

 

As a result, the trading session finished with the Dow Jones adding 0.69% traded on a level of 16009.99 points. S&P 500 increased by 0.81% reaching a level of 1795.85 points, and Nasdaq grew by 1.22% to the level of 3969.15 points.

 

In the meantime, Oil rose in price as well, to maximum levels this month, owing to favorable data on employment, and the increased demand for gasoline and diesel fuel. Price for WTI during yesterday’s trading session increased by 1.7% to level of 95.44$ per barrel, Brent jumped by 1.87% to a price of 110.08$.

 

In turn, Gold continues to lose in price in connection with expectations of the reduction of volumes of financial stimulation of the economy from the FED, on one of the subsequent meetings. The price of Gold fell for another 1.1% to value of 1243.60$ for troy ounce.

 

Copyright: MAYZUS Investment Company Ltd

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25 November 2013: Iran Acquired The Right To Use Nuclear Power Which Pushed Commodities Down

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Long-awaited safe permission of the situation with Iran became one of the main events of last weekend. After almost 10 years, on November 24th, on the last round of negotiations the compromise was found in Geneva. Six international intermediaries (the Russian Federation, the USA, the People's Republic of China, Great Britain, France and Germany) recognized the right of Iran to use nuclear power in peace purposes on the condition of it being controlled from IAEA. Within the signed arrangement, there is the right of Iran to peace atom, including the right to enrichment, at the understanding that this program will be put under the strictest control of the IAEA. The U.S. President, Barack Obama, urged the congress of the USA to refrain from introduction of new sanctions against Iran due to the achievement of arrangements in Geneva. According to Mr.Obama, the agreement represents the first step in a solution which will create space and time for achievement of further arrangements according to the nuclear program of Iran.

 

It isn't clear yet how all stock markets will react to this news, but the Oil market precisely after such statements, will certainly have a correction. This morning, Brent is losing 2.63% traded on a level of 108.13$ and Light is down by 1.39% at a price of 93.52$ per barrel.

 

No less, an interesting situation continues to develop in the market of precious metals. On the basis of the development of the deflationary process in Japan, Europe and the USA, Gold and Silver, for already more than a year, continue to decrease and its over soft monetary policy of the central banks and artificially increased liquidity. Fears about fast reduction of the program of monetary easing by FED only strengthen a negative view of precious metals.

 

From a technical point of view, Gold, for already more than a year, is in a descending trend, and we cannot see even one sign which will show the turn of the trend. Recently, Gold has been going through the important technical level on 1250.00$ and now the most expected outcome is the level of 1200.00$ per troy ounce. These levels could be taken into consideration for the opening of long positions. It is worth noting that the cost of Gold mining now on average makes 1100.00-1200.00$, therefore we will hardly see a collapse of quotations lower than 1100.00$.

 

This morning, Gold is down by 0.97% at a price of 1232.10$ per troy ounce. Silver is also under strong pressure, decreasing by 1.13% and bargaining next to the level of 19.64$ per troy ounce.

 

Copyright: MAYZUS Investment Company Ltd

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26 November 2013: Investors Are Trying To Avoid Taking Action

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Key stock indices of Europe showed positive dynamics supported by the agreement on control of the nuclear program in Iran. So, Iran refused uranium enrichment for the next six months in exchange for mitigation of the economic sanctions concerning export of Oil, cars and precious metals. Based on that, following the results of the trading session the key index of Great Britain, the FTSE 100, increased by 0.3%.The French CAC 40 became 0.55% heavier, and the German DAX went to a plus by 0.88%.

 

The American market has also started the first day of the trading week on a positive note, but by the end of the day, indices showed different results. The S&P index shows growth for the last seven weeks, supported by the idea of preservation of volume of the program of quantitative easing by the FED. "The day before it became known that a number of banks made the statement that if FED will start to cut the quantitative program and will make interest on deposits negative, banks will start to take money from clients for bank deposits”, - the experts make comments, noting that this information justifies a turn in Oil and Gold, and also the equity market can receive the next portion of free cash.

 

Following the results of the trading session, the Dow Jones index added 0.04% and reached a level of 16072.54 points, S&P decreased by 0.12%, to the level of 1802.48 points, Nasdaq appeared in a plus for 0.07% and made 3994.57 points.

 

Asian markets this morning are moving in a different direction too. Japanese Nikkei is going down by 0.11%, correcting after a four-day growth against the strengthening Yen in relation to the Dollar. The Chinese Shanghai Composite grew by 0.01%, the Korean KOSPI added 0.14%, the Hong Kong HANG SENG grew by 0.21%.

 

Prices of commodities restored losses we witnessed yesterday. Brent is traded on 110.59$ per barrel, Light is up to 94.46$ per barrel. Gold is increasing by 1.00% and is on the level of 1253.64$ per troy ounce. Silver managed to return back to the level above 20.00$ adding 1.41% and is traded on a price of 20.16$ per troy ounce.

 

Today there is not going to be a lot of important macroeconomic statistical data published. Important data to pay attention to is the release of September’s data on quantity of new buildings in the USA, where growth to 908 thousand houses is predicted.

 

Copyright: MAYZUS Investment Company Ltd

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27 November 2013: Nasdaq Subdued The Level Of 4000 Points

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Yesterday, the stock market of the United States finished the trading session with insignificant growth of the main stock indices. The Standard & Poor's 500 index managed to keep over the level of 1800 points, whereas the index of blue chips Dow Jones is traded over the level of 16 000 points.

 

A considerable volume of statistics, which caused mixed reaction in the markets, were published yesterday. Housing prices in 20 capital regions of the USA in 12 months with the termination in September, increased to the maximum size since February 2006, which signals improvement on the housing market. Moreover, the number of permissions for construction of houses in October increased by 6.2%, which was more than expected. At the same time, data on the index of consumer confidence for November disappointed investors, the indicator, contrary to expectations, decreased from the reconsidered 72.4 points to 70.4 points, whereas retreat only to 72.9 points was expected.

 

Let's note that in the last half an hour of the trading session, indices reduced the obtained gain almost to zero as institutional investors tried to consider changes in structures of the MSCI indices coming into force. Despite that, the index of the hi-tech sector Nasdaq Composite managed to finish the session above the level of 4000 points for the first time since 2000.

 

Following the results of the trading session, the indicator of blue chips of Dow Jones Industrial Average finished on the same price as the previous day at the level of 16072.80 points, the index of the wide market Standard & Poor's 500 increased by 0.1% to a level of 1802.75 points, and the index of high-tech industries Nasdaq Composite went to a plus on 0.58% and reached the level of 4017.75 points.

 

Commodities prices are stable, Brent is adding 0.06% and is traded on a level of 110.95$ per barrel. WTI is down by 0.25% at price of 93.45$. Gold and Silver are adding 0.39% and 0.32% accordingly, traded on a level of 1246.20$ and 19.91$ per troy ounce.

 

Due to the celebration of Thanksgiving Day tomorrow, traditional weekly demands for unemployment benefits will be published today. Surprises are not expected, after the jump due to the budgetary crisis to 370 thousand, for weeks in a row now it has tended to decrease. The last value made 323 thousand, which, historically, is a rather low level.

 

Copyright: MAYZUS Investment Company Ltd

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28 November 2013: The US Market Is Going To Be Closed In Honor Of Thanksgiving Day Celebration

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Yesterday, the stock market of the United States finished the trading session with a moderate growth of the main stock indices. Indices were getting support from the published macroeconomic statistical data, and the hi-tech sector looked better than the market due to the successful reporting of Hewlett-Packard. The price of shares of the producer of the computer equipment, Hewlett-Packard, jumped up by 9.1% against the publication of the quarterly report. The company revenue in three months decreased from $29.96 billion a year earlier, to $29.1 billion whilst analysts expected only $27.8 billion.

 

Let’s be reminded that according to the published data, the number of primary requests for unemployment benefits for last week was reduced from the reconsidered 326 thousand, to 316 thousand, whereas an increase to 330 thousand was expected. The Chicago Purchasing Managers' Index in November decreased more than was expected to 63 points, average forecasts being at the level of 60, and the index of consumer confidence of university of Michigan for the current month, showed an increase from 72 points to 75.1, although an increase of only 73.5 points was expected. Disappointment occurred due to data on orders for long using goods for October. The indicator was reduced by 2%, which was slightly stronger than expectations.

 

So, successful confluence of encouraging macroeconomic statistics helped all three stock indices of the USA to go over some important trading levels. Even the trading volumes were lower than usual yesterday, due to the upcoming Thanksgiving Day, when the exchanges will be closed.

 

Following the results of the trading session, the indicator of blue chips Dow Jones Industrial Average raised by 0.15% to the level of 16097.33 points, the index of the wide market Standard & Poor's 500 increased by 0.25% to a level of 1807.23 points, and the index of high-tech industries Nasdaq Composite went to plus on 0.67% and reached the level of 4044.75 points.

 

In the commodity market, Brent is adding in price and has managed to go over the level of 111.00$. This morning, Brent is traded on a price of 111.42$ per barrel, and increasing by 0.09%. Light, at the same time, is falling in price, traded on the price of 92.22$ per barrel and decreasing by 0.08%. Gold and Silver are stable in the levels metals were yesterday. Gold is up by 0.09% on a level of 1238.95$ per troy ounce, Silver is up by 0.11% at price of 19.66$ per troy ounce.

 

As for the EUR/USD currency pair, the Euro continues to become stronger. EUR/USD had basis to continue strengthening as since the morning, the markets received news that Angela Merkel's block could create a coalition with the social democrats. It was quite an expected event, however this still encouraged demand for the pair. There was positive growth of the indicator of business climate in Germany. The index became stronger to 7.4 from the previous 7.1, which also played a supporting role. Today we shall pay attention to the labor market of Germany, and if the indicators will be positive again, the pair will be able to resume growth with the next purpose on 1.3640.

 

Copyright: MAYZUS Investment Company Ltd

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29 November 2013: Investors Begin To Guess When The Rally In The Market Of The USA Will End

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Yesterday the trading session in Europe was rather quiet with just a small increase of the main indices. The statistics, which were published yesterday had a moderately positive character. So, unemployment in Germany in November appeared at the level of expectations and didn't change in comparison with to the previous month – 6.9%. The index of business climate in the Eurozone considerably surpassed the forecast, and made 0.18 points instead of the expected 0.03 points. The consumer price index in Germany in November also appeared to be slightly higher than expectations, which should weaken deflationary fears. As a result, the index of the London stock exchange FTSE 100, grew by 0.08%, the index of the Parisian stock exchange CAC 40, by 0.22%, and the index of the Frankfurt stock exchange DAX, by 0.39%.

 

Asian indices did not show uniform dynamics this morning. Unemployment in Japan for October appeared above expectations of the market and made 4%. The consumer price index coincided with forecasts and made 0.9%. As a result, the Japanese Nikkei decreased by 0.41%, and the Korean KOSPI, by 0.24%. Shanghai Composite grew by 0.07%, and the Hang Seng by 0.2%.

 

Participants of the world market, independently from the stock market they are trading in, now follow the American stock market with close attention. Everybody is interested in the outcome of the record rally of the US stock indices seen this year. That it will continue, everyone doubts, trees don't grow to heavens! Consequences of this outcome will be felt by the US, as well as all other stock markets.

 

Be reminded that on Sunday night preliminary estimates of the season of sales in America will become known, and there is a big share of probability that demand of consumers this year will be weaker, and the data on the whole will show negative results, which certainly could lead to correction. This is basis to believe that next week we will see the beginning of the correction on the American and other world stock markets.

 

Friday becomes a rather busy day from the point of view of macroeconomic statistics. Early in the morning, Japanese data confirmed preservation of annual inflation at the level of 1.1%, which is a good signal for the government which has set a purpose to overcome long-term deflation for stimulation of business activity in the country. In the European region the main data to be published this week, indicators of the labor market, and we expect at least a minor improvement of the coefficient of unemployment.

 

Copyright: MAYZUS Investment Company Ltd

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02 December 2013: “Christmas Rally” - To Be, Or Not To Be?!

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

We are entering December, the last month of 2013. The current week is the first working week of the new month, and therefore will be traditionally saturated with important macroeconomic statistics and events, capable to have an essential impact on the stock, commodities and currencies markets, and also will set the mood of investors for all of December. Very soon we will be able to judge whether participants of the markets will be able to see a traditional “Christmas rally" or, after this year, December will become a correctional month at stock markets.

 

The external background at the beginning of the week can be described as poorly negative. The trading session in the US on Friday came to an end with the indices reaching different results. The traditional season of Christmas sales started on Friday in America, which pushed prices of the American retailers considerably up. Retail sales is a key factor of the national economy of the US, as two thirds of business activity are based on consumer expenses.

 

Usually during the Christmas period, the trading companies receive up to 40% of annual revenue. According to data of ComScore, online sales on "Black Friday" increased by 15%, and reached a record of $1.2 billion, thus for the first 29 days of the festive season, which begun on November 1, the general Internet sales made $20.6 billion which was 3.1% higher than data of the same period of last year. It should be noted that online purchases on Thanksgiving Day, grew, in turn, by 21% to $766 million.

 

However, only Nasdaq managed to finish the trading day in "a green zone", which added 0.37% and finished trading day at the level of 4059.89 points. Dow Jones lost 0.07% falling down to the level of 16086.41 points, and S&P 500 lost 0.08% decreasing to 1805.81 points.

 

Asian platform this morning are prevailing "bear" moods. The index of the Chinese stock market Shanghai Composite decreases by 0.82% after the publication of the corrected data on business activity in the country industry. So, according to the estimates of HSBC, PMI value in November made 50.8 points, when 50.4 points were declared earlier. NBS recalculation didn't bring any unpleasant surprises. The indicator remained at the level of 51.4 points. Also, Korean KOSPI decreases on Monday by 0.6%, and the Hong Kong Hang Seng manages to grow up 0.54%.

 

In the commodities market, Oil is more or less on the levels reached last week. Brent bargains at the level of $109.68 for barrel adding in price 0.31%, Light is up by 0.47%, at the level of 93.45$ per barrel. Gold and Silver are losing their value in price. Gold is down for 0.32% at the level of 1246.35$ per troy ounce, and Silver is decreasing by 0.89% at the price of 19.86$ per troy ounce.

 

Copyright: MAYZUS Investment Company Ltd

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03 December 2013: Statistics In The USA Didn't Inspire Investors On Rally Continuation

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Yesterday, the American stock market finished the trading session with a moderate fall due to profit fixing. Most likely, after a few advantageous weeks, investors decided to take a break before the FED meeting in December. The good figures published on the industry didn't inspire purchases.

 

As it became known from the ISM report, the American industry unexpectedly grew in November, and the index of economic conditions of ISM in the production sphere jumped to 57.3 points from 56.4 points, while a decrease to 55 points was predicted. Yesterday there were also statistics published on expenses on construction for 2 months at once. In September, the indicator was reduced by 0.3%, but in October it showed a 0.8% growth at average expectations of 0.4%.

 

Following the results of the trading session, the indicator of "blue chips", the Dow Jones Industrial Average index, was closed with a minus of 0.48% on a level of 16008.77 points. The index of the wide market S&P 500 went down by 0.27% to the level of 1800.90, and the index of the hi-tech companies Nasdaq, receded by 0.36% to a level of 4045.26 points. The current level of 1800 points for S&P 500 seems to be attracting a high volume and number of market participants, and thus we assume that a move from this level will be prompt and rather strong.

 

The trading session on the Asian platforms takes place mainly in the red zone. Independently stands the Japanese Nikkei, growing due to the falling Yen. An important event for the markets has been the decision of the Reserve Bank of Australia to keep the interest rate at the level of 2.5%, at the same time other comments of the regulator were painted in rather negative colors.

 

Prices of Oil this morning are stable on the levels reached yesterday. Brent is flat traded on a level of 111.04$ per barrel, and WTI is adding 0.34% in value, traded on a level of 94.42$ per barrel. Precious metals fell under essential pressure at the beginning of the week. Quotations of Gold lost more than 2.5%, and Silver almost 4%. This morning, Gold and Silver are again losing in price, Gold is decreasing by 0.03% at a price of 1221.60$ per troy ounce, Silver is down by 0.17% at the level of 19.26$ per troy ounce.

 

Copyright: MAYZUS Investment Company Ltd

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04 December 2013: Oil Quotations Showed Growth Waiting For OPEC Meeting

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Participants of the markets are again beginning to worry about the possible turning of the stimulating programs by the FED in the USA possibly in December, due to the improvement of statistics on the American labor market. The American indices closed the third trading session in a row in "the red zone". The negative is connected with the recognition of that the city of Detroit could become, on an official basis, bankrupt, and it creates precedent for other cities as well.

 

As a result, the Dow Jones index lost 0.59% and dropped below the level of 16000.00 to 15914.62 points. S&P decreased by 0.32% to a level of 1795.15 points, giving up the psychologically important level of 18000.00 points. Nasdaq appeared in a minus for 0.19% at the level of 4037.20 points.

 

Asian stock markets mainly stayed in the negative territory, following the American indices as important statistics, which could've given support to Asian platforms, weren't published. It should be noted that the Chinese Shanghai Composite index shows strengthening of positions, despite statements of the Chinese leader Xi Jinping that target indicators of growth of the economy next year could be lowered to 7%, from the present 7.5%. Support to the Chinese Shanghai Composite is given by the publication of the index of business activity in the services sector according to the HSBC version, which showed an insignificant decrease to 52.5 points.

 

Oil quotations on Tuesday showed growth waiting for the meeting of member countries of OPEC, moreover, “black gold” is supported by news regarding the fast start of part of the Keystone Oil pipeline in the USA. Meanwhile, the minister of Oil of Libya, Abdulbari Al Arusi, declared on Wednesday that the country will restore Oil production in full, within 10 days. This news could put pressure on Oil prices, which managed to increase during the trading session yesterday.

 

Brent managed to increase to the level of 112.24$ per barrel, adding this morning 0.09%, WTI is leading with an increase of 1.15% up to the level of 97.34$ per barrel.

 

This week markets are waiting for important macroeconomic data on November unemployment, and the revised data on gross domestic product in the USA for the third quarter. Moods of investors will depend on that data for the near-term outlook. Also, today figures on Oil stocks in the USA will be published.

 

Copyright: MAYZUS Investment Company Ltd

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05 December 2013: The End Of The Year In The Markets Promises To Be hot!

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

On Wednesday, the American stock markets closed the trading session in a minus against speculation over the QE3 program turning already in December. The main sign and, probably, the only reason for renewal of conversations on repayment of bonds, was the indicator of employment of ADP for the November, which considerably exceeded forecasts of experts of 173 thousand and made 215 thousand. In case of high data on the labor market of the USA, which will be published on Friday, most likely, we are going to see a fascinating ending to the year, thus in November hearings about reduction of volume of repayment of bonds practically weren't conducted.

 

Meanwhile, some other important statistical indicators appeared to be worse than market forecasts, which also had its influence and did not allow indices to lose much more in value. First of all, we will pay attention to the index of economic conditions of ISM in the non-productive sphere for November, which fell from 55.4 in October, to 53.9, whilst analytics were predicting 55. Deficiency of trade balance of the country, in turn, appeared above expectations of economists of $40 billion, and made $40.64 billion. The statistics on sales of new houses in the USA, published the previous day for 2 months, due to closure of government offices in October, also did not bring anything positive to the markets. For October, the indicator slightly exceeded forecasts of analysts, and in September, it was much lower than expectations.

 

As a result, the indicator of "blue chips", the Dow Jones Industrial Average index, decreased by 0.16% and was closed on a level of 15 889.8 points. The index of the wide market S&P 500 went to a minus by 0.13% to the level of 1 792.81 points, and the index of the hi-tech companies, Nasdaq, grew by 0.02% to a level of 4 038 points.

 

Oil isn't ready to lose the positions and tries to keep at levels reached at the beginning of the week. Light this morning is adding 0.05%, and is traded on a level of 97.48$. Brent is slightly down on 0.27% on a level of 111.13$ per barrel. Precious metals oppositely are losing in price, Gold is decreasing by 0.67% at a price of 1238.80$ per troy ounce, Silver is down by 0.88% at price of 19.66$ per troy ounce.

 

After yesterday's block of statistics in the USA, all attention gradually switches over to actions of the Central Banks. The Bank of England and the European Central Bank are going to have meetings today. If the English regulator can keep the status quo, everybody is waiting for continuation on monetary policy mitigation from the European Central Bank.

 

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06 December 2013: The Markets Are Waiting For Evening Statistics From The USA

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Again the markets appeared under oppression of the expected reduction of QE3. Investors expect that the FED will make the decision to reduce the volume of the program of quantitative easing at the meeting of the FOMC in December. The question of reduction of the program of quantitative stimulation will be discussed at the FED meeting, which will take place on the 17th-18th of December, which was declared by the chairman of the Federal Reserve Bank of Atlanta, Dennis Lockhart. He does not have a voting right and didn't express his opinion regarding QE3 program reduction, however, he declared that if the decision will be taken, it is worth beginning to think about the start of the recovery of the economy of the country.

 

The block of statistical data which was published yesterday was negative, from the point of view of a toughening of the policy by the FED. In the 3rd quarter, the economy of the US showed maximal levels of growth since the beginning of 2012. Gross domestic product of the country grew by 3.6%, though earlier it was reported about growth of only 2.8%. Analysts expected revision of growth of the American gross domestic product to be 3.1%. The number of demands for unemployment benefits in the USA last week was reduced by 23 thousand and made 298 thousand, expected growth being at 4 thousand. Today we expect important data on November unemployment in the USA. These figures are going to be the main influencing factor which is going to set the mood of investors until the upcoming FED meeting.

 

Nevertheless, the spirit in the Asian markets since the morning was moderately positive. The MSCI Asia Pacific index rose by 0.2%. Nikkei added nearly 1%. Yesterday, European stock markets drifted in neutral territory at the opening of the trading session, but by the end of the day, the American statistics and Draghi’s statement pushed them to go down. FTSEurofirst 300 lost 0.96%, IBEX index in Spain decreased by 1.56% and FTSE MIB in Italy lost 1.75%. The bank of England and the European Central Bank left interest rates without change. Draghi, also during his press-conference, reported that the European Central Bank is ready to act further, but did not decide yet what kind of actions to choose. Comments of Draghi provoked sharp strengthening of the Euro.

 

This morning, EUR/USD is traded on a level of 1.3658 points. Brent is up by 0.34% at price of 110.94$, WTI is up by 0.09% at the price of 97.70$. Gold and Silver are flat at the levels of 1231.91$ and 19.55$ per troy ounce accordingly.

 

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09 December 2013: The Positive Statistics Inspired Investors

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

 

On Friday the 6th of December, the American statistical bodies published a lot of the major American macroeconomic indicators. Despite the importance of each of them, the greatest interest was represented by the results of a detailed inspection of the national labor market, which is a priority for the assessment of the current state and prospects of the American economy. The central place was taken by the employment in the non-agricultural sector of the country.

 

Monthly extension of pay-sheets in the non-agricultural sector in November was estimated at 180-185 thousand, but actual growth was significantly higher than the predicted limits and made 203 thousand. Audits underwent the previous data on increase in employment in this sector. In November, the private sector added 196 thousand new regular positions, being expected at 180 thousand.

 

Afterwards, the focus of attention shifted towards another very significant indicator - a preliminary index of consumer confidence of Michigan university, which, in December, grew 82.5 points from 75.1 points in November, to the maximum level since July. Analysts were predicting a more modest advance to 76.0 points. Improvement of the consumer spirit of Americans and their readiness to strengthen consumer activity, was promoted by a certain improvement of the economic situation and encouraging shifts on the labor markets in the USA.

 

Thankfully, due to all this data, on Friday we could see the long-awaited change in the moods of the investors, who, lately, were having doubts regarding the inevitable approaching terms of reduction of volumes of financial stimulation from the FED. This time, players reacted to successful statistics on employment and consumer confidence adequately, and the markets showed steady growth from the very beginning of the trading session. However, even with significant growth following the results of the day, it couldn't compensate for the loss of the Dow Jones and S&P 500 indices that interrupted their long advantageous series of 8 weeks.

 

As a result, the Dow Jones industrial average index raised by 1.26% to 16020.20 points. The Standard & Poor's 500 index increased by 1.12%, having closed at the level of 1805.09 points, and the Nasdaq Composite index raised on 0.73% to value of 4062.52 points.

 

The price of Gold this morning continues to fall, and Gold is traded on a level of 1227.84$. Silver is also losing 0.09% in value being at a price of 19.51$ per troy ounce. Investment appeal of Gold as a form of 'safe' investment, decreased against encouraging American data on employment.

 

Oil prices in the meantime managed to keep their gains and this morning continue to show positive dynamics. Brent is on a level of 111.34$ per barrel, increasing by 0.11%; WTI is up by 0.08% on a level of 97.98$ per barrel. Oil increased in price against very positive data on the American labor markets and consumer confidence, which gives strong grounds to count on an increase in demand for energy carriers. For the last week, the total increase of prices for Oil made 5.3%, which is the best result since July.

 

The main event of this week is going to be the report on retails for November, which will be published on Thursday. Participants will gradually be preparing for the meeting of FED planned for December 17-18. Respectively, we should very closely follow the speech of the "FED’s loud-hailer" - James Bullard - who, today, will address the representatives of the CFA association.

 

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10 December 2013: Markets Move Carefully Before FED Meeting

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

The stock markets proceeded with careful growth. In the morning, the quotation of risky assets were supported by data on growth of the Chinese export in November by 12.7% after a growth of 5.6% in October. This data was regarded not only as positive for the economy, but also as a testimony of growing world demand. It should be noted that investors aren't rushing to draw conclusions about an early beginning of turning of stimulating measures from the FED, after obtaining strong data on gross domestic product of the USA for the III quarter, and strong statistics on the American labor market in November. So, the index of the wide market S&P 500 reached a new historical record yesterday.

 

As a result of the trading session, the Dow Jones increased by 0.03% up to the level of 16025.53 points. Nasdaq added 0.15% and reached a level of 4068.75 points, and S&P 500 increased by 0.18% up to the level of 1808.37 points.

 

Yesterday, markets also heard the opinion of two representatives of the FED, both of them being relatively positive. There was a statement from the head of FED of Saint Louis, James Bullard, who, in the current year, has the right to vote at meetings. He reported that the latest improvements on the labor market increase the probability of fast reduction of stimulating measures, however, these actions have to be undertaken carefully, as inflation is at minimum levels. The statement from the head of FED of Dallas, Richard Fischer, who will acquire a vote for FOMC next year were surer. He called the current time 'suitable' to start the turning of volumes of QE, however, he also explained that any operations of the regulator have to proceed in the conditions of full clarity and transparency for the markets.

 

According to recent polls of Bloomberg, about 34% of economists and analysts expect the beginning of turning of volumes of quantitative incentives at the December meeting, thus the vast majority is sure that at the end of the I quarter 2014, the volume of purchases of assets from the FED will be less than the current 85 billion Dollars a month.

 

The beginning of the new week in the commodity markets was negative, pressure on which has been amplified due to a number of objective reasons. Quotations of Oil and the majority of metals considerably decreased yesterday after the publication of statistical data from China and Germany. The volume of import to China in November slowed down in growth rates from 7.6% to 5.3% in annual expression. Besides, industrial production volume in Germany in October unexpectedly decreased to a minimum since May values, having fallen by 1.2% in September against forecasts of growth of 0.9%. Additional pressure upon Oil quotations was observed, due to the first meeting which begun in Vienna, of experts of Iran and six other countries, concerning development of mechanisms of implementation of the interim agreement reached at the end of November.

 

Brent is traded on a level of 109.63$ per barrel adding 0.45%, WTI is on a price of 97.95$ per barrel increasing by 0.40%. Gold is up by 0.87% at price of

1244.98$ per troy ounce, and Silver is trying to get back what was lost last week, and is up by 1.22%, at a price of 19.94$ per troy ounce.

 

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12 December 2013: Markets Continue Their Correctional Movement

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

The global markets are decreasing for the second day in a row. Strong macroeconomic statistics in the USA, which were published recently, and progress in budgetary negotiations, gave investors the idea that the FED could start cutting the program of quantitative easing next week.

 

Republicans and Democrats managed to agree about a cut in expenditure on defence yesterday, and on other expenses for the next two years. Even figures on expenses, which parties managed to come to consensus, are insignificant. It is an exceptional case when parties agree in principle. Nevertheless, the speech did not mention neither about a change of the ceiling of the national debt, nor about any motions concerning Obama's medical reform, and the probability of a new stop of government organizations in February, still remains. The markets regarded news from the White House as a reason for careful sales, after all, harmonious work of the Government means faster carrying out of reforms and effective work of the economy, so it can be expected that artificial incentives will be required less. But more likely it is worth speaking only about a reason for correction, instead of the real reason of decrease.

 

During yesterday's trading session, the American stock indices suffered considerable losses. As per the results of the trading day, indices of the US overtook the European indices on rates of decrease. The S&P 500 index showed the maximum loss in the last month, having decreased by 1.13% and closed the trading session on a level of 1782.22 points. Dow Jones lost 0.81%, reaching a level of 15843.53 points, and Nasdaq decreased by 1.4% up to the level of 4003.81 points. In the meantime, The British FTSE 100 lost just 0.24%, the German DAX - 0.41%, the French CAC 40 - 0.1%.

 

This morning, the situation continues to be aggravated. The trading session in Asia passed with big losses. Futures for indices are also decreasing. The meeting of the FED will take place next week and up to this point, the markets will remain highly volatile.

 

Commodities quotations are only changing slightly. Gold, near the level of 1250,00$ for troy ounce, does not impress long-term investors. Reserves of SPDR Gold Trust were reduced by 2.1 ton to 833.6 ton. Data of the Ministry of Energy of the USA on stocks, repeated statistics of API. For the last week, commercial stocks of Oil decreased by 10.6 million barrels to 375.2 million barrels. Brent this morning is traded on a price of 109.51$ per barrel, and WTI is at the level of 97.64$ per barrel.

 

Today is rich in macroeconomic statistics. During the day data on industrial production in the Eurozone will be published. Data on the import/export prices, retails, and primary requests for unemployment benefit in the USA will be also presented.

 

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16 December 2013: Fears Regarding Reduction Of QE Continue To Rein Over The US Stock Market

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

The forthcoming week promises to be the most interesting of all leaving 2013. The head of the FED, Ben Bernanke, will carry out, probably, the last meeting as the chairman and nobody excludes the possibility that he could finish his 7-year term with the beginning of the turn of stimulating measures. Undoubtedly, even the probability of such an outcome already pressed on the dynamics of stock markets, and the prospect to chop off New Year's rally could force Bernanke to reduce buying up volumes by only a symbolical sum. However, even in that case, it will be enough to return demand for the US Dollar, especially against the Yen and the British Pound.

 

The stock market of the USA spent Friday in the lateral range, having finished the trading session with minimum changes. However, that decrease, which the American stock indices showed for the past week, for 1.5-1.7%, was the maximum for the last 2 months. The sector of health care and telecoms appeared to be the outsiders of the week, among the different sectors.

 

As the result, the trading session came to an end with the Dow Jones adding 0.1% and reaching the level of 15755.36 points, S&P decreasing by 0.01% to the level of 1775.32 points, and Nasdaq growing by 0.06% to the level of 4000.97 points. Sales also were caused by the publication of preliminary data on the index of business activity in the industry according to HSBC - the indicator decreased from 50.8 points in November to 50.5 points in December.

 

Leading stock indices of Europe on Friday didn't show considerable changes. Following the results of the week they went down by 1.4-1.8% against macroeconomic statistics and corporate news in the Eurozone, which disappointed investors. Shares of the British insurance company RSA Insurance Group appeared to be the leader of the decline on Friday, having fallen by 7% after whispers of resignation of its executive director. Thus the British FTSE-100 index, having lost 1.7% in a week, showed a decrease for the sixth week in a row.

 

During the day a rather low volume of macroeconomic statistics from abroad is expected. In France, there will be preliminary data on indices of business activity in the industry and in the services sector for December. Similar indices will be published in Germany, and in the Eurozone as a whole. In the USA, reconsidered November dynamics of labor productivity and industrial production for November, will be published later on during the day.

 

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[MAYZUS.Neeraj]

17 December 2013: The Stock Market Began The Week On A Positive Note

 

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 moderate growth of the main indices after the largest weeks loss since August. Since the beginning of the week, traders are concentrating on the upcoming meeting of the FED and trying to find in published macroeconomic statistics the key to the outcome of this meeting, and making their mind up if volumes of QE will actually be reduced or will be kept on the present levels. Be reminded that the beginning of cutting off the program of quantitative easing at Decembers meeting is expected by about a third of all economists, the others are still leaning towards the March meeting.

 

As for the macroeconomic statistical data published yesterday, it became known that industrial production in November increased by 1.1% against average forecasts of growth of 0.5%. October growth rates of industrial production were reconsidered from -0.1% to 0.1%. Labor productivity increased in the third quarter by 3%, whereas an increase by 2.8% was expected.

 

Following the results of the trading session, the indicator of blue chips of Dow Jones Industrial Average raised by 0.82% to the level of 15884.83 points, the index of the wide market Standard & Poor's 500 increased by 0.63% to a level of 1786.54 points, and the index of high-tech industries of Nasdaq Composite went to a plus on 0.71% and reached the level of 4029.52 points.

 

Leading stock indices of Europe on Monday also grew against favorable corporate news and macroeconomic statistics. One of the leaders of growth was the German DAX index which added 1.7% in the context of strong indicators of business activity in the industrial sector of Germany which were recently published. The corresponding PMI index of the production sector of Germany grew in December to maximum levels for the last 2.5 years, which says volumes about the essential increase of activity in the German industry, which could pull the entire European economy out of where it is, and into the positive zone, despite the worsening situation in France. The summary, the index of business activity of the Eurozone, characterizing the situation in the industry, and in the service sector, grew to 52.1 points from 51.7 points a month earlier, which testifies to proceeding towards the recovery of the European economy as a whole.

 

In the commodity market, prices for Oil are slightly down and prices for precious metals are adding in value slightly. Brent is traded on a level of 109.32$ per barrel, and losing 0.08%, WTI is decreasing by 0.16%to the level of 97.61$ per barrel. Gold and Silver are up by 0.03% and 0.16% accordingly, bargaining next to the levels of 1244.76$ and 20.13$ per troy ounce.

 

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[MAYZUS.Neeraj]

18 December 2013: Today Promises To Be Hot!

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Today all the markets come to a head regarding the "QE-3 turning", and today we will be able to draw conclusions on their direction for the medium-term prospect. Unfortunately, it is never easy for the meeting of the Central Banks due to the fact that too many nuances can affect the dynamics of the financial markets: how accurately are the plans for the end of the program of stimulation of the economy going to be announced? what terms will be exposed? in what volumes will the reduction will be carried out? what kind of target points will be chosen by the FED in order to take actions? And so on.

 

The latest macroeconomic data obviously testify in favor of the recovery of the economy of the USA, and given the current conditions, it will be difficult for the FED not to take any action. In fact, the QE-3 program reduction on 5-10 billion Dollars is already obviously included into the prices, and participants of the market are potentially ready for a similar event, and, if together with reduction of the program of repayment of assets, the target level on unemployment will be lowered to a level of 5.5%, it can be positively apprehended by the markets, as this fact will remove expectations of an increase of interest rates for almost another 2 years.

 

Anyway, at the programmed reduction for an amount of not less than 10 billion Dollars, we will see a small short-term correction in all stock markets, and strengthening of the index of Dollar to all currencies. Furthermore, it is necessary to pay attention to debt market if growth of profitability on American bonds is going to be resumed with new force, which will mean that investors apprehended results of meeting of the FED negatively, and it is worth preparing for correction in stock markets as well.

 

As for yesterday’s trading session, the American market finished the day in a minus. Investors’ opinions are still very different in relation to the decision of the FED, which will be announced in the evening, which stresses the markets and increases uncertainty. Investors prefer not to hurry in regards to their actions. Following the results of the trading session, the Dow Jones index went down by 0.06% to the level of 15875.26 points, S&P 500 decreased by 0.31% up to the level of 1781.00 points, Nasdaq lost 0.14% and reached the level of 4023.68 points.

 

Oil decreased the day before on expectations of reduction of demand, and also growth of deliveries from the Middle East. Commercial stocks of Oil decreased last week by 2.5 million barrels. This morning Brent is losing 0.05% and is traded on a level of 108.38$ per barrel, WTI is up for 0.22% at the price of 97.68$ per barrel. Gold and Silver are up by 0.17% and 0.36% accordingly, bargaining at the prices of 1232.14$ and 19.91$ per troy ounce.

 

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[MAYZUS.Neeraj]

19 December 2013: FED Justified Hopes Of Investors, Indices Break New Records

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Yesterday, the stock market of the United States of America finished the trading session on a positive note, due to the announced decision of the FED to start gradual turning of the program of quantitative easing in January, 2014. Note that following the results of the meeting of the Committee on the open market, the key interest rate remained at the former level of 0-0.25%. Representatives of the FED also noted that it will remain in this range even after the unemployment rate falls below the level of 6.5%.

 

As for the volume of initial reduction of repayment of securities, it was decided to cut the current QE program by $10 billion, to $75 billion, considering the improvement of the situation on the labor market of the USA. Besides, FRS declared that measures for reduction of volume of the repayment of bonds will be taken further if the economy continues to be develop steadily.

 

It also should be noted that during the meeting the improved economic forecasts were also announced. So, growth rates of the economy will make (in the current year) 2.2-2.3%, inflation and unemployment rates will be at the level of 0.9-1% and 7-7.1% respectively. Meanwhile, country gross domestic product in 2014, most likely, will increase by 2.8-3.2% whereas inflation will make 1.4-1.6%, and the unemployment rate will be reduced to 6.3-6.6%.

 

Following the results of the trading session, the Dow Jones Industrial Average index got stronger by 1.84% and was closed on a level of 16167.97 points, S&P 500 went into plus by 1.66% to the level of 1810.65 points, and the index of the hi-tech companies, Nasdaq, increased by 1.15% to the level of 4070.06 points.

 

Futures for Oil this morning are decreasing by 0.20% on Brent and 0.09% on WTI. Brent is traded on a level of 109.40$ per barrel, and WTI is on the price of 97.97$ per barrel. Gold yesterday started to increase in price after the announcement of the decision of the FED, but very quickly lost its strength and returned back to its usual levels. This morning, Gold is decreasing by 1.17% and is traded on the price of 1221.21$ per troy ounce, Silver is down by 2.47% at a price of 19.56$ per troy ounce.

 

Its also was an interesting day in the currency market, where increased volatility in all major currency pairs was observed. The decision originally weakened the US Dollar, however interest in the currency was returned quickly during Bernanke’s press conference, who practically promised that each meeting next year will actually go with program reduction on 10 billion Dollars, and by the end of 2014 QE3 will be completely reduced. One more interesting moment that the majority of officials are waiting for, is an increase in the interest rate, expected to happen in 2015. All these nuances defined the belief of investors in a bright future, however, it is better not to take everything mentioned so seriously, and it is worth dividing into two. This morning, the EUR/USD is on a level of 1.36790.

 

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[MAYZUS.Neeraj]

20 December 2013: The Statistics Didn't Confirm That The Decision Of FED Was Justified

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

On Thursday, the American market finished the trading session with a small decrease due to the published macroeconomic statistical data. Deterioration of data on numbers of new houses and requests for unemployment benefits cast a shadow on the recent improvement of the economic forecasts of the FED, and provoked derogation of the S&P 500 index from historical maxima.

 

The number of primary requests for unemployment benefits unexpectedly jumped to a maximum for the last 9 months to the level of 379 thousand, from 369 thousand previously, and sales of houses in the secondary market decreased by 4.3% to 4.90 million, which was much worse than average forecasts.

 

As a result, following the results of the trading session, the indicator of "blue chips" the Dow Jones Industrial Average index, was closed with an increase of 0.07% at the level of 16179.08 points, the index of the wide market S&P 500 went down by 0.06% to the level of 1809.60 points, and the index of the hi-tech companies, Nasdaq, receded by 0.29% to the level of 4058.13 points.

 

The trading session in Asia is also not developing in a positive direction. Indices of the region bargain mainly in negative territory. The main negative continues to arrive from China, and the situation in the liquidity market remains. Yesterday, the national Bank of China carried out dot injections of liquidity on the market, however, it practically had no affect on interbank rates.

 

The cost of Gold fell to the minimum level for the last three years, due to the decision of the FED to reduce the program of repayment of bonds in January next year. Analysts of Goldman Sachs Group estimate that further depreciation of this precious metal should not be excluded. They believe that by the end of next year, the cost of Gold will fall to 1050.00$ per troy ounce. It should be noted that experts submitted these forecasts a month ago.

 

Yesterday, Gold reached the minimum level since the 3rd of August 2013, at 1188.68$ per troy ounce. This morning, the metal is adding just 0.09%, and is traded on the price of 1194.61$. Silver is up by 0.16% at the price of 19.22$ per troy ounce.

 

Oil prices are also down, Brent is losing 0.33% traded at the level of 109.93$ per barrel. WTI is down by 0.25% on a level of 98.79$ per barrel.

 

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[MAYZUS.Neeraj]

03 January 2014: First trading day of the new year has not really been positive

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Investors are just starting to return back from holiday, and the volumes on the markets are gradually increasing. The first trading day in the new year has not been as positive as the last trading days of 2013.

 

As a result, Dow Jones industrial average lost 0.82% and reached a level of 16441.35 points. S&P 500 decreased by 0.89% up to the level of 1831.98 points, and Nasdaq Composite weakened by 0.80%, reaching a level of 4143.07 points.

 

The situation in the commodities market is quite different. Oil prices lost a bit in value and are traded this morning with Brent adding 0.02% and WTI loosing 0.17%, reaching prices of 107.63$ and 95.43$ accordingly.

 

Prices of precious metals in comparison are adding in value, Gold is up by 0.67%, and traded on the level of 1233.42$ per troy ounce. Silver managed to overcome the level of 20.00$ per troy ounce, this morning bargaining next to the level of 20.13$ per troy ounce.

 

Participants of the market started to be interested again in the American Dollar, due to the fact that the American economy is showing steady growth. ISM index in the manufacturing sphere decreased in December up to 57 points from 57.3, analytics were predicting even more of a steep fall. This data and the profit fixing factor helped the Dollar to strengthen its positions, and pushed the EUR/USD to the area of 1.3670, and the GBP/USD to 1.6440.

 

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[MAYZUS.Neeraj]

06 January 2014: Certain Nervousness Is Observed In The Markets

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

Development of the main stock markets in the world has been quite different. Key stock indices of the USA showed multi-directional dynamics, whilst trading on the European and Asian platforms has been taking place in positive territory.

 

On Friday, no important macroeconomic statistical data was published except for data on Oil stocks for the week, which were reduced by 7.007 million barrels, whereas a decrease of 2.975 million barrels was predicted.

 

As a result of the trading session, the indicator of blue chips of Dow Jones Industrial Average increased by 0.17% to the level of 16469.99 points, the index of the wide market Standard & Poor's 500 lost 0.03% and reached the level of 1831.37 points, and the index of high-tech industries of Nasdaq Composite went to a minus for 0.27% and was closed at the level of 4131.91 points.

 

An interesting development in the market that can be mentioned is that on Friday, prices of Gold reached a two-week maximum against expectations of a possible increase in demand for ingots and coins. Meanwhile, prices of Platinum grew to the maximum value since November. As a result, prices of Gold raised to the maximum level since the 18th of December, up to 1239.60$ per troy ounce, and this morning Gold is traded on a price of 1238.79$ per troy ounce. At the same time, futures for Platinum reached the maximum value since the 20th of November at the price of 1418.00$ per troy ounce, traded this morning on a level of 1402.98$.

 

Today, published by HSBC bank, was the index of business activity for December, which fell in the services sector of China from 52.5 points to 50.9 - the minimum value for almost 2 years. Before the 1st of January, industrial PMI of China, counted by national bureau of statistics, decreased from 51.4 to 51.00 points. This afternoon, indices of business activity of France, Germany and the Eurozone, are going to published. No significant changes are expected.

 

This year also promises to be rather positive for the American economy, and even despite the recent decrease in the ISM index in the manufacturing industry, all data still confirms proceeding restoration. This week will help people to be convinced of the continued development of similar tendencies, as a lot of statistical data will be published - data on business activity in the services sector, data on the labor market, and also the protocol of the last meeting of the FOMC, which will reflect the view of the monetary authorities on the economic prospects of the country.

 

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07 January 2014: Statistics From The US Didn't Inspire Investors

 

DAILY MARKET REVIEWS

By Kristina Leonova: Analyst in Portfolio Asset Management Department.

 

The trading session at the European stock exchanges began today in the red zone, however, yesterday indices showed rather flat dynamics. The index of the London stock exchange (FTSE100) was closed on a level of 6730.73 points. The index of the Parisian stock exchange (CAC40) decreased by 0.47% and reached a level of 4227.54 points, and the index of the Frankfurt stock exchange lost 0.08%, and was closed at the level of 9428.00 points. At the present time, the FTSE100 is decreasing by 0.15%, CAC40 by 0.22%, and DAX by 0.04%.

 

The main American indicators were closed yesterday also in the red zone, pushed down by the index of economic conditions of ISM in the non-productive sphere, which, in December, reached the level of 53, at average expectations of 54.5. Meanwhile, the orders in the manufacturing industry for November increased by 1.8%, while analysts on average predicted an increase of 1.7%.

 

As a result of the trading session, the indicator of blue chips of Dow Jones Industrial Average, went down by 0.27% to the level of 16425.1 points. The index of the wide market Standard & Poor's 500 became 0.25% easier and reached 1826.77 points, and the index of high-tech industries of Nasdaq Composite went to a minus by 0.44% and was closed at the level of 4113.68 points.

 

The statistical calendar is not too rich today. Unemployment rate in Germany for December is going to be published, the level of 6.9%, as previously predicted, is again projected. Also the consumer price index of the Eurozone for December will be presented a bit later. In the evening, data on trade balance of goods and services for November in the US will be published, a negative balance of $40 billion is expected.

 

At the present moment, the EUR/USD currency pair bargains next to the level of 1.3625. Prices of Oil are slightly up, with Brent increasing by 0.54% traded on a level of 106.99$ per barrel, and WTI up by 0.35% at 93.90$ per barrel. Gold and Silver are flat, traded at the prices of 1238.35$ and 20.06$ accordingly.

 

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