Stock trades in the U.S. closed in Tuesday, 31 August 2010. Predominantly growth of leading indexes. On the last day of summer effect on the auction provided statistical data on the U.S. economy. Thus, even before the opening exchanges came on the statistics of an index of house prices S & P / Case-Shiller. In June of 2010. it grew by 0,3% compared to May of this year, which exceeded forecasts of experts who had expected recovery rate on 0,2%.
In addition, shortly after trading began Managers Association of Chicago reported a fall in August 2010. business activity index (PMI) in the U.S. to 56.7 points from 62.3 points in the previous month. Investors embraced the news without much optimism, although PMI and was above forecasts of analysts who had expected its value at level 56 items. Also the day before the report came out research organization Conference Board of the growth index of consumer confidence in the U.S. in August 2010. up 53.5 points compared with 51 points in July (Forecast - 51 points).
Statistics positively affected the dynamics of quotations of leading U.S. banks. Securities of the largest in the U.S. Bank of America Corp. went up by 1.14% and the corporation Citigroup Inc. - On 1,06%. In the "plus" also shares closed banks: Wells Fargo & Co. and Goldman Sachs Group - on 1,29% and 0,2% respectively, while Morgan Stanley and JP Morgan Chase & Co. - On 1,06% and 1,42%.
Against the background of the publication of index S & P / Case-Shiller securities to go up a number of American developers. Yet, according to experts, published statistics show that the housing market countries are not yet fully recovered from the crisis, but some steps have already been made and after two or three years we can expect the final victory over a recession. Quotes of the largest U.S. home builders luxury company Toll Brothers Inc. The outcome of the rose by 1,33%. Shares other industry representatives have completed trades are not so sure: Paper developer Lennar Corp. went up slightly - by 0.15%, shares of the largest U.S. retailer of goods for home improvement Home Depot - on 0,24%.
Strengthened their position in the market securities miners due to the increase in gold prices. Quotes mededobyvayuschey company Freeport-McMoRan Copper & Gold Inc. on the basis of trades increased by 2,32% and the largest U.S. steel companies US Steel Corp. and AK Steel Holding Corp. - On 1,38% and 1,11%. The green sector ended session for the gold mining: shares Newmont Mining Corp. and Barrick Gold Corp. went up by 2,34% and 1,5%.
Meanwhile, less successfully concluded the last trading session of the summer for the world's largest seed producer Monsanto Co. Quotes of the company fell 5.8% after Monsanto executives said on a possible deterioration in their financial performance on the basis of the current fiscal year compared to previously projected levels.
As a result of trading on August 31 the Dow Jones index rose by 4.99 points (0.05%) - up to 10,014.72 points, S & P rose 0.41 points (0.04%) - up to 1,049.33 points, and NASDAQ fell 5.94 points (-0.28%) - up to 2,114.03 points.
By the end of trading indexes in Europe managed to win back the morning of loss
Trades in Europe on Tuesday, August 31, opened by the decrease of the leading indexes after a noticeable drop in U.S. markets and Asia. After the morning to reduce stock indexes much of the session showed the lateral dynamics. However, by the end of trading mood of investors has improved the publication of macroeconomic statistics in the U.S., as well as the positive opening of U.S. stock exchanges. The index of consumer confidence in America in August rose to 53.5 points compared with 51 points in July Analysts also expect that the index would be 51 points. The index of business activity, calculated Managers Association of Chicago (PMI), in August 2010. fell to 56.7 points. Experts predicted that the figure for the reporting period was 56 points. Investors were optimistic about the published data, and buying on the stock exchanges resumed. As a result, by the end of the day the major indexes in Europe were able to win back losses and closed with a gain. The French CAC 40 index rose to 0,11% - to 3490.79 points, Germany's DAX rose by 0,22% - to 5925.22 points, Britain's FTSE 100 added 0.46% to 5,225.22 points.
Shares of French retailer Carrefour fell 0.78% Net profit in the first half of 2010. amounted to 82 million euro against net loss a year earlier of $ 58 million euro. Sales of French retailer for January - June 2010. increased by 6% and amounted to 43.73 billion euros, while a year earlier the figure was fixed at 41.28 billion euros. Before tax profit for the period increased by 88,4% and reached 362 million euros against 192 million euros for January - June 2009
The papers of the German manufacturer of semiconductors Infineon Technologies AG declined by 0,2%. The largest producer of microprocessors - the American company Intel Corp. intends to buy Infineon unit for the production of chips for wireless devices Wireless Solutions for 1.4 billion dollars
Unemployment in the euro area in July 2010. unchanged at 10%. It is reported by the news service RBC with reference to a report published on Tuesday, the European statistical agency Eurostat. Analysts also expect that the index value of 10%. In annual terms, the unemployment rate in July 2010 in the euro area rose by 0.4 percentage points - from 9,6% in July 2009. In 27 countries - EU member states the unemployment rate in July 2010. with seasonal fluctuations did not change compared with the revised figure for June 2010. and amounted to 9,6%. In annual terms, the unemployment rate rose by 0.5 percentage points compared with 9.1% in July 2009. In July of 2010. the lowest unemployment rate was recorded in Austria (3.8%), while the highest - in Spain (20,3%).
Consumer prices in the euro zone, according to preliminary data, in August 2010. on an annualized basis rose by 1,6%. Analysts also expect that inflation in the euro zone in August will be at the level of 1,6% in annual terms. In July of 2010. consumer price index in the euro area rose by 1,7% relative to the same month a year earlier.
The unemployment rate in Germany in August 2010. seasonally adjusted unchanged at 7.6%. Such data are distributed on Tuesday, the Federal Agency for Employment of the country. Analysts also predicted that this figure will remain at 7.6%. In absolute terms the number of unemployed seasonally adjusted, in August 2010. decreased by 17 thousand people and was 3,193,000 people. Without taking into account seasonal fluctuations in the number of unemployed in Germany up to August 2010. decreased by 4 thousand people - up to 3,188,000 people.
Shares of French retailer Carrefour fell 0.78% Net profit in the first half of 2010. amounted to 82 million euro against net loss a year earlier of $ 58 million euro. Sales of French retailer for January - June 2010. increased by 6% and amounted to 43.73 billion euros, while a year earlier the figure was fixed at 41.28 billion euros. Before tax profit for the period increased by 88,4% and reached 362 million euros against 192 million euros for January - June 2009
The papers of the German manufacturer of semiconductors Infineon Technologies AG declined by 0,2%. The largest producer of microprocessors - the American company Intel Corp. intends to buy Infineon unit for the production of chips for wireless devices Wireless Solutions for 1.4 billion dollars
Unemployment in the euro area in July 2010. unchanged at 10%. It is reported by the news service RBC with reference to a report published on Tuesday, the European statistical agency Eurostat. Analysts also expect that the index value of 10%. In annual terms, the unemployment rate in July 2010 in the euro area rose by 0.4 percentage points - from 9,6% in July 2009. In 27 countries - EU member states the unemployment rate in July 2010. with seasonal fluctuations did not change compared with the revised figure for June 2010. and amounted to 9,6%. In annual terms, the unemployment rate rose by 0.5 percentage points compared with 9.1% in July 2009. In July of 2010. the lowest unemployment rate was recorded in Austria (3.8%), while the highest - in Spain (20,3%).
Consumer prices in the euro zone, according to preliminary data, in August 2010. on an annualized basis rose by 1,6%. Analysts also expect that inflation in the euro zone in August will be at the level of 1,6% in annual terms. In July of 2010. consumer price index in the euro area rose by 1,7% relative to the same month a year earlier.
The unemployment rate in Germany in August 2010. seasonally adjusted unchanged at 7.6%. Such data are distributed on Tuesday, the Federal Agency for Employment of the country. Analysts also predicted that this figure will remain at 7.6%. In absolute terms the number of unemployed seasonally adjusted, in August 2010. decreased by 17 thousand people and was 3,193,000 people. Without taking into account seasonal fluctuations in the number of unemployed in Germany up to August 2010. decreased by 4 thousand people - up to 3,188,000 people.
Forex: Yen increasing in price
Start the new week at Forex only strengthened trends that operated for the past months. Investors are more boldly flirt with the Japanese Central Bank - the yen is at a maximum for the past 15 years. Meanwhile, Japan's economy does not feel better over the past decade and a half way. However, the measures taken by the central bank of the country in the foreign exchange market, causing the players a smirk.
Monday, 30 August, held an emergency meeting of Japanese securities in which it was decided to increase the funds available to banks at a fixed rate, from 20 trillion to 30 trillion yen (351 billion U.S. dollars). In general, this measure can be called a cosmetic, so it is unclear why it took to convene an emergency meeting. More aggressive actions, such as the purchase of Japanese government bond or a decrease in rates from 0.1% to zero, have been postponed until later. But would not it be then too late?
Of course, the most aggressive-minded players exchange market continued to buy yen, and on Tuesday, 31 August, its strengthening is already the second consecutive session. At 9:00 Moscow time the dollar was worth 84.25 yen, and while the reasons for the reversal of this trend is not visible. Moreover, judging by the dynamics of pair euro / dollar, bidders continue to leave the risky assets. So, by that time, one euro was worth 1.2655 dollars, indicating the strengthening U.S. currency. However, for many, and the dollar is the risky asset, so in this situation yen could continue to grow even more vigorously.
Monday, 30 August, held an emergency meeting of Japanese securities in which it was decided to increase the funds available to banks at a fixed rate, from 20 trillion to 30 trillion yen (351 billion U.S. dollars). In general, this measure can be called a cosmetic, so it is unclear why it took to convene an emergency meeting. More aggressive actions, such as the purchase of Japanese government bond or a decrease in rates from 0.1% to zero, have been postponed until later. But would not it be then too late?
Of course, the most aggressive-minded players exchange market continued to buy yen, and on Tuesday, 31 August, its strengthening is already the second consecutive session. At 9:00 Moscow time the dollar was worth 84.25 yen, and while the reasons for the reversal of this trend is not visible. Moreover, judging by the dynamics of pair euro / dollar, bidders continue to leave the risky assets. So, by that time, one euro was worth 1.2655 dollars, indicating the strengthening U.S. currency. However, for many, and the dollar is the risky asset, so in this situation yen could continue to grow even more vigorously.
Forex: Players raise the risk following a statement by B. Bernanke
Friday, August 27, at Forex made drastic change in mindset of investors. Following the very negative macroeconomic statistics from the U.S. Department of Commerce data out of the country (US Department of Commerce) on GDP, demonstrating that all is not so bad. But Fed chief Ben Bernanke, in turn, promised new incentives for the economy. Against this backdrop, investment in risky currencies became interested players. Euro continued to rise against the dollar, and on Friday and Monday. However, bidders rarely believe words, and at the beginning of the week for players started thinking about what had in mind the American Ministry of Trade and head of the Fed.
Recent macroeconomic data for the U.S. indicate that the multiple drivers of economic growth the country is not in the best condition. First, banks will not lend to business and investment in the economy is not growing. Secondly, judging by the low inflation and high unemployment, consumer demand also remains very weak. Few previously reported that the situation with exports from the United States, too, is not the best way. Finally, the backbone branches - construction, according to statistics has, in a state of severe depression. Due to what the GDP in the II quarter of this year grew by a significant 1.6%, one can only guess. Apparently, the entire rate increase due to government spending. Calms the only one: released on Friday GDP figures were only preliminary. After they refine the growth of the economy is likely to be revised downwards.
Naturally, B. Bernanke, too, could not disappoint the markets. He promised to pump up the American economy with cheap money (that will ensure the growth of GDP) and to fight deflation. Common words head of the Conservation Reserve monetary policy allowed players to continue buying risky currencies and assets. However, even Bernanke himself could not help but note that "the central bank has not yet determined the criteria or grounds for further action." Thus, the Fed has tools for pumping the economy with money, which will lead to artificial rise in GDP, but the levers start organic growth, the authorities seem to be no.
Recent macroeconomic data for the U.S. indicate that the multiple drivers of economic growth the country is not in the best condition. First, banks will not lend to business and investment in the economy is not growing. Secondly, judging by the low inflation and high unemployment, consumer demand also remains very weak. Few previously reported that the situation with exports from the United States, too, is not the best way. Finally, the backbone branches - construction, according to statistics has, in a state of severe depression. Due to what the GDP in the II quarter of this year grew by a significant 1.6%, one can only guess. Apparently, the entire rate increase due to government spending. Calms the only one: released on Friday GDP figures were only preliminary. After they refine the growth of the economy is likely to be revised downwards.
Naturally, B. Bernanke, too, could not disappoint the markets. He promised to pump up the American economy with cheap money (that will ensure the growth of GDP) and to fight deflation. Common words head of the Conservation Reserve monetary policy allowed players to continue buying risky currencies and assets. However, even Bernanke himself could not help but note that "the central bank has not yet determined the criteria or grounds for further action." Thus, the Fed has tools for pumping the economy with money, which will lead to artificial rise in GDP, but the levers start organic growth, the authorities seem to be no.
Oil prices rose to a maximum of five sessions
Oil on the stock exchanges in New York and London on the basis of trading on August 26 2010. has risen for the second time in the last seven sessions. Prices for futures rose for the day at an average of 1,65% and reached its highest level in five trading sessions - almost a week.
The results of trading on the stock exchange for oil contracts the first position on August 26 were:
- New York Mercantile Exchange, on an urgent New York Mercantile Exchange (NYMEX) the official price of the futures Light, Sweet Crude Oil (October) rose by 0.84 dollars (+1,2%) and set at around U.S. $ 73.36 barrel. with a range of prices of transactions per session 72,54-73,98 per barrel.;
- At the London Mercantile Exchange electronic InterContinental Exchange Futures Europe (ICE Futures Europe) The official price for the futures IPE Brent Crude (October) rose by 1.54 dollars (2.1%) and set at around 75.02 dollars per barrel . with a range of prices of transactions per session 73,38-75,55 per barrel.
Official prices for oil futures on the eve reached maximum values after 19 August this year Oil prices have risen because of the continued speculative buying of futures, which began on August 25 this year Purchases of oil on the eve of further contributed cheapened the dollar and the state of affairs in the U.S. labor market.
Indicator of the market Forex, reflecting changes in U.S. dollar relative to basket of six leading world currencies, Dollar Index (spot) on August 26 this year decreased by about 0,4% and for the first week established below 83 points. The dollar has fallen in price on the eve of the euro against other currencies, it is technically easier purchase additional oil futures prices, which are set in dollars.
As stated before the U.S. Department of Labor (US Department of Labor), the new unemployed in the country was less than expected. Thus, the number pervinchyh requests for unemployment benefit for a week, which ended on 21 August 2010. As compared with that of the previous week declined by 31 thousand and reached 473 thousand hits. Analysts had expected that this figure will be 495 thousand hits. Data from the U.S. labor market weakened somewhat fears of slowing U.S. economic recovery, had a positive impact on oil futures.
However, the official oil prices have been established on the basis of the trading day Aug. 26 well below their maximum prices. It is possible that pressure on raw material has the American stock market, where major stock indexes fell on the eve of an average of 0,9%. However, it is possible that the oil market on the eve of simply exhausted the technical potential for further growth, so the traders began to get close long positions.
Note the last two trading days the price of oil Brent rose by 3,5%, and the price of oil WTI (Light Sweet) - 2,4%, after the previous five sessions of the price of Brent crude oil fell by 5.5%, dropping to a minimum of seven weeks, and the price of WTI crude oil fell by 5,9%, having fallen to a minimum of 11 weeks.
The results of trading on the stock exchange for oil contracts the first position on August 26 were:
- New York Mercantile Exchange, on an urgent New York Mercantile Exchange (NYMEX) the official price of the futures Light, Sweet Crude Oil (October) rose by 0.84 dollars (+1,2%) and set at around U.S. $ 73.36 barrel. with a range of prices of transactions per session 72,54-73,98 per barrel.;
- At the London Mercantile Exchange electronic InterContinental Exchange Futures Europe (ICE Futures Europe) The official price for the futures IPE Brent Crude (October) rose by 1.54 dollars (2.1%) and set at around 75.02 dollars per barrel . with a range of prices of transactions per session 73,38-75,55 per barrel.
Official prices for oil futures on the eve reached maximum values after 19 August this year Oil prices have risen because of the continued speculative buying of futures, which began on August 25 this year Purchases of oil on the eve of further contributed cheapened the dollar and the state of affairs in the U.S. labor market.
Indicator of the market Forex, reflecting changes in U.S. dollar relative to basket of six leading world currencies, Dollar Index (spot) on August 26 this year decreased by about 0,4% and for the first week established below 83 points. The dollar has fallen in price on the eve of the euro against other currencies, it is technically easier purchase additional oil futures prices, which are set in dollars.
As stated before the U.S. Department of Labor (US Department of Labor), the new unemployed in the country was less than expected. Thus, the number pervinchyh requests for unemployment benefit for a week, which ended on 21 August 2010. As compared with that of the previous week declined by 31 thousand and reached 473 thousand hits. Analysts had expected that this figure will be 495 thousand hits. Data from the U.S. labor market weakened somewhat fears of slowing U.S. economic recovery, had a positive impact on oil futures.
However, the official oil prices have been established on the basis of the trading day Aug. 26 well below their maximum prices. It is possible that pressure on raw material has the American stock market, where major stock indexes fell on the eve of an average of 0,9%. However, it is possible that the oil market on the eve of simply exhausted the technical potential for further growth, so the traders began to get close long positions.
Note the last two trading days the price of oil Brent rose by 3,5%, and the price of oil WTI (Light Sweet) - 2,4%, after the previous five sessions of the price of Brent crude oil fell by 5.5%, dropping to a minimum of seven weeks, and the price of WTI crude oil fell by 5,9%, having fallen to a minimum of 11 weeks.
Oil has risen despite the growth of its reserves and the negative statistics has
Oil prices on Wednesday 25 August, rose, despite a series of negative news. As a result of trading on the New York Mercantile Exchange price of a futures contract on the mark WTI for October delivery climbed 0.89 dollars - up to 72.52 dollars per barrel. During the day the cost of oil futures in this class was reduced to a mark of $ 70.76 per barrel. At the InterContinental Exchange in London, the October contract on the Brent Crude oil rose by 1.1 dollars, closing at 73.48 dollars per barrel.
Trading session on August 25 in the oil market was held on a negative background. In the U.S. went out the next portion of bleak macroeconomic statistics. For example, sales in the primary housing market fell in July by 12,4% - up to 276 thousand (as against 315 thousand a month earlier), which was significantly worse than analysts' expectations (330 thousand).
"The drop in sales of new buildings is perhaps more grim news than to collapse in 27% of sales in the secondary housing market, - commented on the published data analysts Capital Economics. - Sales of new homes are assessed at an earlier stage of the buying process on the market than selling old home and they have already fallen by 32% after the abolition of tax relief at the end of April. In other words, sales in the primary market have reached a point when the distortions caused by tax exemptions, gradually eroding. Therefore, when the smoke clears, it becomes evident that the situation the market is very bad. "
Disappointing performance revealed in July and orders for durable goods. Despite the fact that, in general indicator grew by 0,3% (which, incidentally, is already bad news, as analysts had expected growth by 3%), positive result was only achieved at the expense of the transport component: the number of orders for civilian aircraft rose by 75 , 9%, and on vehicles and parts - by 5,3%. If, however, exclude the transport component, the amount of orders fell in July by 3,8%, which was the most significant decline since January 2009.
"In the past year, U.S. business recovery headed the economy - analysts said Bank of Montreal. - But now it seems that he takes a step back. With what companies have been reluctant to increase the number of jobs, the deterioration in the prospects of investment was an additional factor in favor of slower growth economy in the second half of this year. "
Meanwhile, a very negative dynamics showed reserves of oil and petroleum products in the U.S.. According to the report of the Ministry of Energy of the country (US Department of Energy), on the last week the amount of oil in storage rose by 4.1 million barrels. - Up to 358.3 million barrels. That far exceeded analysts' expectations (500 thousand barrels).. Thus, oil reserves are even higher rise above the upper limit of five-year average range.
As noted by analysts, the main reason for the increased reserves of "black gold" in the United States was to reduce its deliveries to refineries (from 15,238,000 to 14,890,000 barrels. / Day) and an increase in imports (from 9.561 million to 9.881 million barrels. Per day) . In addition, last week in the country saw an increase in oil production - from 5,352,000 to 5,511,000 barrels. day.
Trading session on August 25 in the oil market was held on a negative background. In the U.S. went out the next portion of bleak macroeconomic statistics. For example, sales in the primary housing market fell in July by 12,4% - up to 276 thousand (as against 315 thousand a month earlier), which was significantly worse than analysts' expectations (330 thousand).
"The drop in sales of new buildings is perhaps more grim news than to collapse in 27% of sales in the secondary housing market, - commented on the published data analysts Capital Economics. - Sales of new homes are assessed at an earlier stage of the buying process on the market than selling old home and they have already fallen by 32% after the abolition of tax relief at the end of April. In other words, sales in the primary market have reached a point when the distortions caused by tax exemptions, gradually eroding. Therefore, when the smoke clears, it becomes evident that the situation the market is very bad. "
Disappointing performance revealed in July and orders for durable goods. Despite the fact that, in general indicator grew by 0,3% (which, incidentally, is already bad news, as analysts had expected growth by 3%), positive result was only achieved at the expense of the transport component: the number of orders for civilian aircraft rose by 75 , 9%, and on vehicles and parts - by 5,3%. If, however, exclude the transport component, the amount of orders fell in July by 3,8%, which was the most significant decline since January 2009.
"In the past year, U.S. business recovery headed the economy - analysts said Bank of Montreal. - But now it seems that he takes a step back. With what companies have been reluctant to increase the number of jobs, the deterioration in the prospects of investment was an additional factor in favor of slower growth economy in the second half of this year. "
Meanwhile, a very negative dynamics showed reserves of oil and petroleum products in the U.S.. According to the report of the Ministry of Energy of the country (US Department of Energy), on the last week the amount of oil in storage rose by 4.1 million barrels. - Up to 358.3 million barrels. That far exceeded analysts' expectations (500 thousand barrels).. Thus, oil reserves are even higher rise above the upper limit of five-year average range.
As noted by analysts, the main reason for the increased reserves of "black gold" in the United States was to reduce its deliveries to refineries (from 15,238,000 to 14,890,000 barrels. / Day) and an increase in imports (from 9.561 million to 9.881 million barrels. Per day) . In addition, last week in the country saw an increase in oil production - from 5,352,000 to 5,511,000 barrels. day.
Forex: Dollar started to concede the position
In Forex began Correction - Dollar was to give ground against the euro. If even the night before for a euro gave U.S. $ 1,26, then the morning of Thursday, August 26, euro-zone currencies quoted at around U.S. $ 1,27 The trend correction of a technical nature: the outer background is still depressing.
So, on Wednesday in the U.S. went out the information that sales of new buildings in the country in July decreased by 12,4% compared with the value for June, totaling 276 thousand Analysts also expect that the July figure will be at the level of 330 thousand
Of course, these data only repeat information that appears on Tuesday,: the American housing market downturn begins again. But this time, the market response to statistics which came out was completely the opposite: the dollar went down. At the same time he began to give way to a position only risky currencies - the euro and pound. At the same time against the yen the U.S. currency has strengthened. So one dollar was worth 84.76 yen.
Thus, the Forex began correction of the dollar against major world currencies. This has led to surge of optimism in commodity and stock exchanges. However, there are technical correction is unlikely to last long. Most likely, next week will strengthen the U.S. currency.
So, on Wednesday in the U.S. went out the information that sales of new buildings in the country in July decreased by 12,4% compared with the value for June, totaling 276 thousand Analysts also expect that the July figure will be at the level of 330 thousand
Of course, these data only repeat information that appears on Tuesday,: the American housing market downturn begins again. But this time, the market response to statistics which came out was completely the opposite: the dollar went down. At the same time he began to give way to a position only risky currencies - the euro and pound. At the same time against the yen the U.S. currency has strengthened. So one dollar was worth 84.76 yen.
Thus, the Forex began correction of the dollar against major world currencies. This has led to surge of optimism in commodity and stock exchanges. However, there are technical correction is unlikely to last long. Most likely, next week will strengthen the U.S. currency.
GDP in Germany in the II quarter of 2010. increased by 2,2%
GDP in Germany in the II quarter of 2010., On the final data, compared with the previous quarter grew by 2.2%. It was informed by August 24 National Statistical Office of Germany. Analysts also expect the growth of this indicator on 2,2%.
Compared with the II quarter of 2009. GDP in Germany in the II quarter of 2010. increased by 4,1%, as previously reported. In this case, according to revised data, GDP in Germany in the I quarter of 2010. increased by 0,5% compared with the IV quarter of 2009. (Previously also reported that the index rose by 0,5%), and in comparison with I quarter of 2009. - Rose by 2,1% (as reported earlier).
Compared with the II quarter of 2009. GDP in Germany in the II quarter of 2010. increased by 4,1%, as previously reported. In this case, according to revised data, GDP in Germany in the I quarter of 2010. increased by 0,5% compared with the IV quarter of 2009. (Previously also reported that the index rose by 0,5%), and in comparison with I quarter of 2009. - Rose by 2,1% (as reported earlier).
Exchanges of Europe fell under the pressure of weak statistics has
Trades in Europe on Tuesday, August 24, opened a decrease in the leading index in anticipation of the publication of data on the volume of sales in the secondary housing market of the United States. Analysts had expected a decline of 12,9% - to its lowest level since March 2009. That would indicate a slow recovery of the world's largest economy. Throughout the session the individual players got rid of securities and stock indices gradually decreased. Against the background of expectations yield negative statistics trades to the United States also opened the fall of the major indices. The published statistics exceeded even the most pessimistic projections: sales of homes on the secondary market of America in July 2010. at an annual rate decreased by 27,2% and amounted to 3.8 million units. Such data are disseminated the National Association of Realtors USA. These statistics contributed to the growth concerns of investors about a possible second wave of the crisis.
Pressure on the paper oil companies provided reduction in the value of "black gold". By the end of the day the futures price for Brent crude for October delivery fell by 1,3% - to 72,6 USD per barrel. Paper French Total depreciated at 1.64%, shares of British and Netherlands Royal Dutch / Shell - 1%. Correction on the metals market has caused sales of the shares of mining sector. Paper industry's largest company BHP Billiton fell 1.47%. Shares Anglo American, the second-largest mining company, fell by 1.84%. By the end of the day the French CAC 40 index lost 1.75% and amounted to 3,491.11 points, Germany's DAX dropped to 1,26% - to 5935.44 points, and the British FTSE 100 fell 1.51% - to 5155.95 points .
Shares British Petroleum Plc. fallen on 3,35%. It is worth recalling that BP sells assets to recover the actual and potential costs of an accident in the Gulf of Mexico. The German company Skytanking Holding GmbH, carries toplivozapravki in a number of international airports, acquired from the British oil giant BP Plc. 51% refueler S. & J.D. Robertson North Air Limited (United Kingdom). As reported in the common materials Skytanking, a deal on buying shares ended 20 August 2010. "Thus, the acquisition of a British tanker Skytanking provided access to the UK market", - says the material of the German company. The amount of the transaction were not disclosed. However, BP has retained the remaining 49% stake in North Air, carrying out refueling work at 17 British airports, including airports in Edinburgh, Glasgow and Manchester.
Macroeconomic statistics, published in Europe, was generally at the level of expectations. GDP in Germany in the II quarter of 2010., On the final data, compared with the previous quarter grew by 2.2%. This news service RBC with reference to the National Statistical Office of Germany. Analysts also expect the growth of this indicator on 2,2%. Compared with the II quarter of 2009. GDP in Germany in the II quarter of 2010. increased by 4,1%, as previously reported.
The volume of industrial orders in the euro area in June 2010. increased by 2,5% compared to the previous month. Experts expect that this figure will rise on a monthly basis at 1.5%. In annual terms, growth in industrial orders amounted to 22,6%. In May of 2010. volume of industrial orders in the euro zone rose by 4.1% on a monthly basis and by 23% annualized. The volume of industrial orders in the 27 EU countries in June 2010. compared with May 2010. increased by 2,4%, compared with June 2009. - 22,5%.
Pressure on the paper oil companies provided reduction in the value of "black gold". By the end of the day the futures price for Brent crude for October delivery fell by 1,3% - to 72,6 USD per barrel. Paper French Total depreciated at 1.64%, shares of British and Netherlands Royal Dutch / Shell - 1%. Correction on the metals market has caused sales of the shares of mining sector. Paper industry's largest company BHP Billiton fell 1.47%. Shares Anglo American, the second-largest mining company, fell by 1.84%. By the end of the day the French CAC 40 index lost 1.75% and amounted to 3,491.11 points, Germany's DAX dropped to 1,26% - to 5935.44 points, and the British FTSE 100 fell 1.51% - to 5155.95 points .
Shares British Petroleum Plc. fallen on 3,35%. It is worth recalling that BP sells assets to recover the actual and potential costs of an accident in the Gulf of Mexico. The German company Skytanking Holding GmbH, carries toplivozapravki in a number of international airports, acquired from the British oil giant BP Plc. 51% refueler S. & J.D. Robertson North Air Limited (United Kingdom). As reported in the common materials Skytanking, a deal on buying shares ended 20 August 2010. "Thus, the acquisition of a British tanker Skytanking provided access to the UK market", - says the material of the German company. The amount of the transaction were not disclosed. However, BP has retained the remaining 49% stake in North Air, carrying out refueling work at 17 British airports, including airports in Edinburgh, Glasgow and Manchester.
Macroeconomic statistics, published in Europe, was generally at the level of expectations. GDP in Germany in the II quarter of 2010., On the final data, compared with the previous quarter grew by 2.2%. This news service RBC with reference to the National Statistical Office of Germany. Analysts also expect the growth of this indicator on 2,2%. Compared with the II quarter of 2009. GDP in Germany in the II quarter of 2010. increased by 4,1%, as previously reported.
The volume of industrial orders in the euro area in June 2010. increased by 2,5% compared to the previous month. Experts expect that this figure will rise on a monthly basis at 1.5%. In annual terms, growth in industrial orders amounted to 22,6%. In May of 2010. volume of industrial orders in the euro zone rose by 4.1% on a monthly basis and by 23% annualized. The volume of industrial orders in the 27 EU countries in June 2010. compared with May 2010. increased by 2,4%, compared with June 2009. - 22,5%.
Forex: bidders are fleeing the dollar
In the Forex market continues the trend took off in early August. Players continue to buy dollar. Moreover, the pressure on the euro starts to grow with the opening of new short positions. This is nothing fundamentally new in the markets does not happen. On the contrary, the situation can be characterized as an information vacuum.
Statistics - as the U.S. and the eurozone on - is of increasing wariness of investors in connection with the slowdown in the recovery of world economic growth. However, this is not news - this fact is known to players since May. At the same time, market players wish to buy the dollar looms ever more clearly. This means that the players are preparing for significant downward movement of pair euro / dollar down, which is usually the result of large-scale macroeconomic shocks.
At 9:00 Moscow time on Tuesday, 24 August, the dollar is worth 1,264 euros and trading is a local minimum. From a technical point of view, perhaps the beginning of the correction pairs of mark 1,26 dollars / euros, while probably the nearest to perform the level of quotations 1,24 dollars / euros.
Do not forget that in this situation the Chinese central bank leaves the dollar zone, thus playing against the majority of investors. That is, market participants can manage "squandered" the euro, even against the background of large-scale sale of U.S. authorities in the PRC. All this testifies to the power of fear that has engulfed the players. And the expectations of economic collapse to give rise to these collapses. It remains only to wait, where the "shot" at this time.
Statistics - as the U.S. and the eurozone on - is of increasing wariness of investors in connection with the slowdown in the recovery of world economic growth. However, this is not news - this fact is known to players since May. At the same time, market players wish to buy the dollar looms ever more clearly. This means that the players are preparing for significant downward movement of pair euro / dollar down, which is usually the result of large-scale macroeconomic shocks.
At 9:00 Moscow time on Tuesday, 24 August, the dollar is worth 1,264 euros and trading is a local minimum. From a technical point of view, perhaps the beginning of the correction pairs of mark 1,26 dollars / euros, while probably the nearest to perform the level of quotations 1,24 dollars / euros.
Do not forget that in this situation the Chinese central bank leaves the dollar zone, thus playing against the majority of investors. That is, market participants can manage "squandered" the euro, even against the background of large-scale sale of U.S. authorities in the PRC. All this testifies to the power of fear that has engulfed the players. And the expectations of economic collapse to give rise to these collapses. It remains only to wait, where the "shot" at this time.
Oil prices fell against the background of negative statistics
Oil prices on Friday, 20 August, fell to the lowest in the past month and a half levels. A new batch of negative makrostatistiki the U.S. has resulted in increasing concern among investors about the economic situation in the country and as a consequence, further changes in demand for oil. In addition, pressure on the market have had a reduction in raw material stock indexes and the strengthening of the dollar.
As a result of trading on Aug. 20 at the New York Mercantile Exchange price for the futures oil of mark WTI in September delivery fell 0.97 dollars - up to 73.46 dollars per barrel. Validity of the September contracts for this sort of Friday expired. The cost of the October futures fell by 0.95 dollars - up to 73.82 dollars per barrel. At the InterContinental Exchange in London, the October contract for Brent Crude oil prices have fallen by 1.04 dollars to close at a mark of 74.26 dollars per barrel.
Another makrostatistika for U.S. investors added reason for concern, pointing to the negative processes in the labor market and in the manufacturing sector of the country. According to the U.S. Department of Labor (US Department of Labor), for the week ended Aug. 14, the number of Americans who first applied for unemployment benefits, rose a further 12 thousand - 500 thousand (the forecast was at 478 thousand). Despite the fact that the numbers may partly reflect the fact that three weeks ago, the U.S. government extended the period of issuance of unemployment benefits, increase the primary thrust of applications is causing intense anxiety.
"The extension three weeks ago period, the issuance of unemployment benefits has coincided with a sharp increase in applications - analyst Capital Economics. - But while the news about increasing the number of appeals should be interpreted with caution, of course, this message should not be left completely unattended. Economic recovery is clearly slowing, and in the circumstances, we expect growth in the number of primary applications for benefits. "
Big disappointment for the market participants caused by the dynamics of business activity index, FRB Philadelphia. According to the organization in August, an indicator reflecting the activity in the manufacturing sector in the region, fell to minus 7.7 points versus 5.1 points a month earlier (forecast was 7 points). "The data on the U.S. economy are terrible - commented on Friday's macroeconomic situation experts Capital Economics. - Falling index of business activity to a minimum Philadelphia Fed over the past 13 months, the level indicates that the recovery in the industrial sector tottering on the brink. From the report it follows that probability of falling national activity index in the manufacturing sector (ISM) below the high 50 points.
Investors in the oil market reacted negatively to the new evidence of slowing U.S. economic growth, as it will inevitably lead to a decrease in demand for "black gold". "We have achieved recent lows due to poor statistics has regular on the U.S. - said the broker BNP Paribas Commodity Futures Inc. Tom Bentz. - Stocks are on a 20-year highs, as demand prospects are worsening. Prices are still high for the current fundamentals."
Additional pressure on crude oil quotes have had price declines in equity markets also suffered against the release of unfavorable makrostatistiki. The index of wide market S & P 500 fell 0.37%, the index of "blue chips" Dow Jones lost 0.56%, and only high-tech NASDAQ finished the day growth, adding 0.04%. Meanwhile in Europe, Germany's DAX index fell 1.15%, the British FTSE 100 - on 0,31%, the French CAC40 - on 1,3%.
As a result of trading on Aug. 20 at the New York Mercantile Exchange price for the futures oil of mark WTI in September delivery fell 0.97 dollars - up to 73.46 dollars per barrel. Validity of the September contracts for this sort of Friday expired. The cost of the October futures fell by 0.95 dollars - up to 73.82 dollars per barrel. At the InterContinental Exchange in London, the October contract for Brent Crude oil prices have fallen by 1.04 dollars to close at a mark of 74.26 dollars per barrel.
Another makrostatistika for U.S. investors added reason for concern, pointing to the negative processes in the labor market and in the manufacturing sector of the country. According to the U.S. Department of Labor (US Department of Labor), for the week ended Aug. 14, the number of Americans who first applied for unemployment benefits, rose a further 12 thousand - 500 thousand (the forecast was at 478 thousand). Despite the fact that the numbers may partly reflect the fact that three weeks ago, the U.S. government extended the period of issuance of unemployment benefits, increase the primary thrust of applications is causing intense anxiety.
"The extension three weeks ago period, the issuance of unemployment benefits has coincided with a sharp increase in applications - analyst Capital Economics. - But while the news about increasing the number of appeals should be interpreted with caution, of course, this message should not be left completely unattended. Economic recovery is clearly slowing, and in the circumstances, we expect growth in the number of primary applications for benefits. "
Big disappointment for the market participants caused by the dynamics of business activity index, FRB Philadelphia. According to the organization in August, an indicator reflecting the activity in the manufacturing sector in the region, fell to minus 7.7 points versus 5.1 points a month earlier (forecast was 7 points). "The data on the U.S. economy are terrible - commented on Friday's macroeconomic situation experts Capital Economics. - Falling index of business activity to a minimum Philadelphia Fed over the past 13 months, the level indicates that the recovery in the industrial sector tottering on the brink. From the report it follows that probability of falling national activity index in the manufacturing sector (ISM) below the high 50 points.
Investors in the oil market reacted negatively to the new evidence of slowing U.S. economic growth, as it will inevitably lead to a decrease in demand for "black gold". "We have achieved recent lows due to poor statistics has regular on the U.S. - said the broker BNP Paribas Commodity Futures Inc. Tom Bentz. - Stocks are on a 20-year highs, as demand prospects are worsening. Prices are still high for the current fundamentals."
Additional pressure on crude oil quotes have had price declines in equity markets also suffered against the release of unfavorable makrostatistiki. The index of wide market S & P 500 fell 0.37%, the index of "blue chips" Dow Jones lost 0.56%, and only high-tech NASDAQ finished the day growth, adding 0.04%. Meanwhile in Europe, Germany's DAX index fell 1.15%, the British FTSE 100 - on 0,31%, the French CAC40 - on 1,3%.
Forex: S & P supported the dollar
The dollar on Friday, August 20, again in demand, even against the background of weak statistics for the United States. In relation to the euro currency is the U.S. has made a significant leap forward, and a week for the pair closed below the uptrend line of the local - at around U.S. $ 1.2708 Apparently, not least the players reacted to the report of the agency Standard & Poor's "How serious is the threat of deflation for the U.S.? "distributed by Reuters.
The report states that the U.S. would avoid deflation by determination of the Federal Reserve System. The probability of long-term decline in consumer prices is low, if not develop re-recession. "When the level of core inflation falls below 1% until deflation is not far. And again a recession can put us on the brink, - noted economist, S & P by David Vise. - We believe that the U.S. will be able to avoid deflation, as the low savings rate, growing population, as well as quick and decisive action the Fed to expand money supply, will not fall into this trap, "- the document says.
However, there is a risk that falling home prices, a weak stock market and the inability of banks to lend could still lead to deflation, experts added. They stressed that the latest index of consumer prices (CPI) indicates a very low inflation, but not yet about deflation.
Thus, almost all negative factors for the U.S. economy are in the areas of housing market and stock prices. And how to improve the situation in these areas in the country already knows. It remains only to deal with bank loans, but it is a technical problem. As a result, the dollar has a chance to continue to strengthen. At 9:00 Moscow time on Monday, 23 August, one euro is worth 1.2720 dollars during the session, most likely the beginning of the next wave of growth in U.S. currency.
The report states that the U.S. would avoid deflation by determination of the Federal Reserve System. The probability of long-term decline in consumer prices is low, if not develop re-recession. "When the level of core inflation falls below 1% until deflation is not far. And again a recession can put us on the brink, - noted economist, S & P by David Vise. - We believe that the U.S. will be able to avoid deflation, as the low savings rate, growing population, as well as quick and decisive action the Fed to expand money supply, will not fall into this trap, "- the document says.
However, there is a risk that falling home prices, a weak stock market and the inability of banks to lend could still lead to deflation, experts added. They stressed that the latest index of consumer prices (CPI) indicates a very low inflation, but not yet about deflation.
Thus, almost all negative factors for the U.S. economy are in the areas of housing market and stock prices. And how to improve the situation in these areas in the country already knows. It remains only to deal with bank loans, but it is a technical problem. As a result, the dollar has a chance to continue to strengthen. At 9:00 Moscow time on Monday, 23 August, one euro is worth 1.2720 dollars during the session, most likely the beginning of the next wave of growth in U.S. currency.
World oil prices fell, led by U.S. statistics
Oil on the stock exchanges in New York and London on the basis of trading on August 19 2010. reborn cheaper. Prices of oil futures declined on the eve of the day at an average of 1,4%. At the same time the official price of oil WTI (Light Sweet) dropped to a minimum of six weeks of steady below $ 75 per barrel. At the same time, the price of Brent oil had not changed so substantially, dropping to its lowest value in three trading days, and to keep above the mark of $ 75 per barrel.
The results of trading on the stock exchange for oil contracts the first position on August 19 were:
- New York Mercantile Exchange on the immediate New York Mercantile Exchange (NYMEX) the official price for the futures Light, Sweet Crude Oil (September) lost 99 cents a day and steady at around 74.43 per barrel. (The lowest since July 7) at the price range of transactions per session 73,96-76,10 per barrel.;
- In London on an electronic commodity exchange InterContinental Exchange Futures Europe (ICE Futures Europe) The official price for the futures IPE Brent Crude (October) fell $ 1 17 cents and steady at around 75.30 dollars per barrel. (The lowest since August 16 this year) with a range of prices of transactions per session 75,00-77,17 per barrel.
Falling prices of oil futures determined Aug. 19 update on the status of the U.S. labor market. As stated before the U.S. Department of Labor (US Department of Labor), "new" unemployed in the country was more than expected. Thus, the number of initial applications for unemployment benefit during the week that ended on August 14 2010. Increased compared with that of the previous week to 12 thousand and reached 500 thousand hits - the highest rate in nine months. However, analysts expect that figure does not exceed 480 thousand hits, according to news service RBC.
Oil market recently is very sensitive to information about unemployment in the U.S.. The reductions in the number of jobs or an increase in the number of unemployed are perceived by market participants as signs of slowing recovery of the U.S. economy, which instantly creates concerns about falling demand for oil and energy derivatives.
Meanwhile, the dollar on August 19 has considerably strengthened its position in the global currency market, which further contributed to the elimination of long positions on oil futures. On the eve of an indicator of the market Forex, reflecting changes in U.S. dollar on the basket of six leading world currencies, Dollar Index (spot) rose by 0,3% to 82.447 points - the highest figure for the last three sessions.
The results of trading on the stock exchange for oil contracts the first position on August 19 were:
- New York Mercantile Exchange on the immediate New York Mercantile Exchange (NYMEX) the official price for the futures Light, Sweet Crude Oil (September) lost 99 cents a day and steady at around 74.43 per barrel. (The lowest since July 7) at the price range of transactions per session 73,96-76,10 per barrel.;
- In London on an electronic commodity exchange InterContinental Exchange Futures Europe (ICE Futures Europe) The official price for the futures IPE Brent Crude (October) fell $ 1 17 cents and steady at around 75.30 dollars per barrel. (The lowest since August 16 this year) with a range of prices of transactions per session 75,00-77,17 per barrel.
Falling prices of oil futures determined Aug. 19 update on the status of the U.S. labor market. As stated before the U.S. Department of Labor (US Department of Labor), "new" unemployed in the country was more than expected. Thus, the number of initial applications for unemployment benefit during the week that ended on August 14 2010. Increased compared with that of the previous week to 12 thousand and reached 500 thousand hits - the highest rate in nine months. However, analysts expect that figure does not exceed 480 thousand hits, according to news service RBC.
Oil market recently is very sensitive to information about unemployment in the U.S.. The reductions in the number of jobs or an increase in the number of unemployed are perceived by market participants as signs of slowing recovery of the U.S. economy, which instantly creates concerns about falling demand for oil and energy derivatives.
Meanwhile, the dollar on August 19 has considerably strengthened its position in the global currency market, which further contributed to the elimination of long positions on oil futures. On the eve of an indicator of the market Forex, reflecting changes in U.S. dollar on the basket of six leading world currencies, Dollar Index (spot) rose by 0,3% to 82.447 points - the highest figure for the last three sessions.
Trading in Europe ended lower leading indexes
Stock trades in Europe on Aug. 20 resulted in reduction of the leading indexes amid fears of investors, allowing slowdown of world economy. The influence on the course of the session had news from the stock exchanges in Japan and the United States. For example, the Dow Jones index fell by 1,39%, S & P - on 1,69% and the NASDAQ - on 1,66%. Stock trading in Japan, too, closed the fall of the index Nikkei - on 1,96%.
In the red zone resulted in bidding for Australian-British mining company Rio Tinto Group (-0,17%), who reported that its Chinese markets in the near future may be weakened.
Shares of European aerospace group European Aeronautics Defence and Space Co. cheaper at 1.76% after the Japanese credit institution Nomura Holdings Inc. lowered its recommendation on shares of the company to "buy" to "neutral."
Reducing quotations was also observed in financial companies. Shares of British Barclays and Lloyds Banking Group have fallen in price on 0,63% and 1,14% respectively. Paper Royal Bank of Scotland and HSBC Holdings have fallen in price on 2,26% and 0,2% respectively. Shares of Deutsche Bank have fallen in price on 0,68%, the French Societe Generale - on 1,42%.
As a result of trading on August 20 the British FTSE 100 index fell by 16.01 points (-0.31%) to 5,195.28 points, the German DAX fell 69.97 points (-1.15%) - up to 6005.16 points, French CAC 40 dropped to 46.28 points (-1.30%) closed at 3526.12 points, the Swiss SMI index lost 95.53 points (-1.52%) and amounted to 6,185.82 points. The Amsterdam AEX fell by 4.35 points (-1.35%) - up 318.02 points. Pan-European index of "blue chips" FTSEurofirst 300 during trading fell 0.7% to 1,029.59 points.
In the red zone resulted in bidding for Australian-British mining company Rio Tinto Group (-0,17%), who reported that its Chinese markets in the near future may be weakened.
Shares of European aerospace group European Aeronautics Defence and Space Co. cheaper at 1.76% after the Japanese credit institution Nomura Holdings Inc. lowered its recommendation on shares of the company to "buy" to "neutral."
Reducing quotations was also observed in financial companies. Shares of British Barclays and Lloyds Banking Group have fallen in price on 0,63% and 1,14% respectively. Paper Royal Bank of Scotland and HSBC Holdings have fallen in price on 2,26% and 0,2% respectively. Shares of Deutsche Bank have fallen in price on 0,68%, the French Societe Generale - on 1,42%.
As a result of trading on August 20 the British FTSE 100 index fell by 16.01 points (-0.31%) to 5,195.28 points, the German DAX fell 69.97 points (-1.15%) - up to 6005.16 points, French CAC 40 dropped to 46.28 points (-1.30%) closed at 3526.12 points, the Swiss SMI index lost 95.53 points (-1.52%) and amounted to 6,185.82 points. The Amsterdam AEX fell by 4.35 points (-1.35%) - up 318.02 points. Pan-European index of "blue chips" FTSEurofirst 300 during trading fell 0.7% to 1,029.59 points.
U.S. Market: Indices updated four-week lows
Friday, 20 August, at the fund in the U.S. market continued sale, despite a noticeable drop in the indices yesterday. The day was quiet in terms of publication of macroeconomic statistics - important information was not disclosed. However, the rebound up "bulls" session is not used - they simply see no reason to have hands on paper, when the economies of the leading countries, raw materials and, accordingly, the stock markets not only raise questions, but with every day are becoming more pessimistic. On Thursday U.S. stock indexes closed near its lowest level in nearly four weeks, so Friday's market weakness was more than enough to update these minima.
As a result of trading on August 20 the Dow Jones index dropped by 57.59 points (-0.56%) - up to 10,213.62 points, NASDAQ rose by 0.81 points (0.04%) - up to 2,179.76 points, S & P dropped to 3.94 points (-0.37%) - up to 1,071.69 points.
The situation in the energy market contributed to the sale of shares. On Friday afternoon, the cost of stamps Brent oil fell below the important level of $ 75 per barrel. And in the evening has already reached $ 74 per barrel. Against the background of financial instability began again fled to the dollar, and increase its rate affects the cost of raw materials. In light of this commodity companies were not in favor with the players. Thus, among the oil companies have suffered the greatest losses ConocoPhillips (-1,5%), Anadarko Petroleum Corp. (-2,6%), Devon Energy Corp. (-1,37%), Marathon Oil Corp. (-1,5%), Hess Corp. (-1.44%) And Chevron Corp. (-1.04%). Better to look traded in NYSE stocks BP, but on Friday it became known that the Swiss oil company Transocean has accused BP of concealing the data needed to investigate the cause of the explosion on the platform of Deepwater. Shareholders of British oil giant remain calm - for them of such a plan is not negative. Quotes BP on Friday rose to 0,44%.
Negative look and metallurgical companies: contracts for base metals on August 20 sharply lost in price, partly the reason for this became overly optimistic expectations of investors a day earlier. On Friday the value of shares of Alcoa Inc. dropped to 0,84%, Freeport-McMoRan Copper & Gold Inc. - 1%, Southern Copper Corp. - On 0,17%, United States Steel Corp. - On 1,51%, AK Steel Holding Corp. - On 1,97%. Despite the volatility in financial markets, gold prices did not continue to rise. Apparently, the desire to build up positions in the hedge instrument has been fully offset by the much increased cost of the dollar. As a result, an ounce of gold fell by up to 1,230 dollars, and paper Newmont Mining Corp. lost in the price of 0,72%.
Better market looked Canadian fertilizer producer Potash Corp. of Saskatchewan Inc. and Australian-British mining giant BHP Billiton Ltd. First, on Friday urged its shareholders to take no transactions with securities companies as long as long as the board of directors did not review formal proposals submitted by BHP, and formulate recommendations. Market participants believe that Potash is using this time to search for other proposals, the amount which would have closer to reality - in the opinion of management - the value of companies. In BHP Billiton emergence of competing proposals do not exclude and are ready to reconsider the bar $ 130 per share, which they offer for each share of the Canadian manufacturer, but is not yet known what the maximum level of assessment. Paper Potash Corp. Friday added to the price of 0,56%, BHP Billiton - 0,13%.
Among the corporate reporting on August 20 worth to pay attention to these world leaders in production of computers Dell Inc. and Hewlett-Packard Co. Both companies reported good results over the past quarter, but Dell managed to build up significant profit (+16%) than HP (+6%). The dynamics of quotations of the companies on Friday was appropriate: HP shares have fallen in price on 2,24%, and Dell could add only 0.25%. Investors are concerned about the pessimistic expectations of sales in the period ahead. The growing tendency of Americans to save is obvious, and-reporting vendors noticed players on the fact that in some segments (particularly in such large, such as home personal computers) sales are no longer growing.
While the stock market continued sell-off is hardly worth thinking about the long-positions: unknown, with some spirit back in the early autumn for auction resting investors - the economic outlook, it is not improving. American indices updated in a four-week lows on Friday, and now the goal of reducing new - minimum mark mid-July. By S & P Index is a level of 1,055 points, and on Dow Jones - a round mark of 10000 items.
As a result of trading on August 20 the Dow Jones index dropped by 57.59 points (-0.56%) - up to 10,213.62 points, NASDAQ rose by 0.81 points (0.04%) - up to 2,179.76 points, S & P dropped to 3.94 points (-0.37%) - up to 1,071.69 points.
The situation in the energy market contributed to the sale of shares. On Friday afternoon, the cost of stamps Brent oil fell below the important level of $ 75 per barrel. And in the evening has already reached $ 74 per barrel. Against the background of financial instability began again fled to the dollar, and increase its rate affects the cost of raw materials. In light of this commodity companies were not in favor with the players. Thus, among the oil companies have suffered the greatest losses ConocoPhillips (-1,5%), Anadarko Petroleum Corp. (-2,6%), Devon Energy Corp. (-1,37%), Marathon Oil Corp. (-1,5%), Hess Corp. (-1.44%) And Chevron Corp. (-1.04%). Better to look traded in NYSE stocks BP, but on Friday it became known that the Swiss oil company Transocean has accused BP of concealing the data needed to investigate the cause of the explosion on the platform of Deepwater. Shareholders of British oil giant remain calm - for them of such a plan is not negative. Quotes BP on Friday rose to 0,44%.
Negative look and metallurgical companies: contracts for base metals on August 20 sharply lost in price, partly the reason for this became overly optimistic expectations of investors a day earlier. On Friday the value of shares of Alcoa Inc. dropped to 0,84%, Freeport-McMoRan Copper & Gold Inc. - 1%, Southern Copper Corp. - On 0,17%, United States Steel Corp. - On 1,51%, AK Steel Holding Corp. - On 1,97%. Despite the volatility in financial markets, gold prices did not continue to rise. Apparently, the desire to build up positions in the hedge instrument has been fully offset by the much increased cost of the dollar. As a result, an ounce of gold fell by up to 1,230 dollars, and paper Newmont Mining Corp. lost in the price of 0,72%.
Better market looked Canadian fertilizer producer Potash Corp. of Saskatchewan Inc. and Australian-British mining giant BHP Billiton Ltd. First, on Friday urged its shareholders to take no transactions with securities companies as long as long as the board of directors did not review formal proposals submitted by BHP, and formulate recommendations. Market participants believe that Potash is using this time to search for other proposals, the amount which would have closer to reality - in the opinion of management - the value of companies. In BHP Billiton emergence of competing proposals do not exclude and are ready to reconsider the bar $ 130 per share, which they offer for each share of the Canadian manufacturer, but is not yet known what the maximum level of assessment. Paper Potash Corp. Friday added to the price of 0,56%, BHP Billiton - 0,13%.
Among the corporate reporting on August 20 worth to pay attention to these world leaders in production of computers Dell Inc. and Hewlett-Packard Co. Both companies reported good results over the past quarter, but Dell managed to build up significant profit (+16%) than HP (+6%). The dynamics of quotations of the companies on Friday was appropriate: HP shares have fallen in price on 2,24%, and Dell could add only 0.25%. Investors are concerned about the pessimistic expectations of sales in the period ahead. The growing tendency of Americans to save is obvious, and-reporting vendors noticed players on the fact that in some segments (particularly in such large, such as home personal computers) sales are no longer growing.
While the stock market continued sell-off is hardly worth thinking about the long-positions: unknown, with some spirit back in the early autumn for auction resting investors - the economic outlook, it is not improving. American indices updated in a four-week lows on Friday, and now the goal of reducing new - minimum mark mid-July. By S & P Index is a level of 1,055 points, and on Dow Jones - a round mark of 10000 items.
World oil prices fell, led by U.S. statistics
Oil on the stock exchanges in New York and London on the basis of trading on August 19 2010. reborn cheaper. Prices of oil futures declined on the eve of the day at an average of 1,4%. At the same time the official price of oil WTI (Light Sweet) dropped to a minimum of six weeks of steady below $ 75 per barrel. At the same time, the price of Brent oil had not changed so substantially, dropping to its lowest value in three trading days, and to keep above the mark of $ 75 per barrel.
The results of trading on the stock exchange for oil contracts the first position on August 19 were:
- New York Mercantile Exchange, on an urgent New York Mercantile Exchange (NYMEX) the official price of the futures Light, Sweet Crude Oil (September) lost 99 cents a day and steady at around 74.43 dollars per barrel. (The lowest since July 7) at the price range of transactions per session 73,96-76,10 per barrel.;
- In London on an electronic commodity exchange InterContinental Exchange Futures Europe (ICE Futures Europe) The official price for the futures IPE Brent Crude (October) fell $ 1 17 cents and steady at around 75.30 dollars per barrel. (The lowest since August 16 this year) with a range of prices of transactions per session 75,00-77,17 per barrel.
Falling prices of oil futures has identified 19 August-date information on the state of affairs in the U.S. labor market. As stated before the U.S. Department of Labor (US Department of Labor), "new" unemployed in the country was more than expected. Thus, the number of initial applications for unemployment benefit during the week that ended on August 14 2010. Increased compared with that of the previous week to 12 thousand and reached 500 thousand hits - the highest rate in nine months. However, analysts expect that figure does not exceed 480 thousand hits, according to news service RBC.
Oil market recently is very sensitive to information about unemployment in the U.S.. The reductions in the number of jobs or an increase in the number of unemployed are perceived by market participants as signs of slowing recovery of the U.S. economy, which instantly creates concerns about falling demand for oil and energy derivatives.
Meanwhile, the dollar on August 19 has considerably strengthened its position in the global currency market, which further contributed to the elimination of long positions on oil futures. On the eve of an indicator of the market Forex, reflecting changes in U.S. dollar on the basket of six leading world currencies, Dollar Index (spot) rose by 0,3% to 82.447 points - the highest figure for the last three sessions.
The results of trading on the stock exchange for oil contracts the first position on August 19 were:
- New York Mercantile Exchange, on an urgent New York Mercantile Exchange (NYMEX) the official price of the futures Light, Sweet Crude Oil (September) lost 99 cents a day and steady at around 74.43 dollars per barrel. (The lowest since July 7) at the price range of transactions per session 73,96-76,10 per barrel.;
- In London on an electronic commodity exchange InterContinental Exchange Futures Europe (ICE Futures Europe) The official price for the futures IPE Brent Crude (October) fell $ 1 17 cents and steady at around 75.30 dollars per barrel. (The lowest since August 16 this year) with a range of prices of transactions per session 75,00-77,17 per barrel.
Falling prices of oil futures has identified 19 August-date information on the state of affairs in the U.S. labor market. As stated before the U.S. Department of Labor (US Department of Labor), "new" unemployed in the country was more than expected. Thus, the number of initial applications for unemployment benefit during the week that ended on August 14 2010. Increased compared with that of the previous week to 12 thousand and reached 500 thousand hits - the highest rate in nine months. However, analysts expect that figure does not exceed 480 thousand hits, according to news service RBC.
Oil market recently is very sensitive to information about unemployment in the U.S.. The reductions in the number of jobs or an increase in the number of unemployed are perceived by market participants as signs of slowing recovery of the U.S. economy, which instantly creates concerns about falling demand for oil and energy derivatives.
Meanwhile, the dollar on August 19 has considerably strengthened its position in the global currency market, which further contributed to the elimination of long positions on oil futures. On the eve of an indicator of the market Forex, reflecting changes in U.S. dollar on the basket of six leading world currencies, Dollar Index (spot) rose by 0,3% to 82.447 points - the highest figure for the last three sessions.
Forex: Dollar does not want to fall
In the Forex market on Wednesday showed a significant momentum British pound sterling, which rose after the publication of the August meeting of the protocol of the Bank of England and closed the session at around 1.5602 dollars per pound. As noted in the protocol, the interest rate remained at 0.5%. From the text of the protocol, this time clearly shows that in the case of inflation and the pace of economic recovery to tighten monetary policy to be considered in more detail, said analyst Lionstone Investment Services Ltd Alexander Veretennikov. Against this backdrop, the pound could begin rapid growth even at a high level inflyatsii.Odin pound is worth 1.5564 dollars per pound.
A pair euro / dollar on Thursday on Forex market trades close to the opening levels, leveling the growth of the day. The closure occurred the day before at around 1.2858 dollars per euro. The growth of the euro impede market participants' expectations statistics has the U.S., which will be released on Thursday and Friday this week. It is assumed that the number of requests for unemployment benefit fell for the week and the index of manufacturing activity rose in August. However, many economists expect over the next two to three months to reduce 1,23-1,14 euros to dollars / euros, and then, in the perspective of six months, a new wave of growth in the single currency. Such a scenario has a right to exist, as investors once again begin to analyze the situation with the debt crisis in the eurozone, analysts say United World Capital.
A pair euro / dollar on Thursday on Forex market trades close to the opening levels, leveling the growth of the day. The closure occurred the day before at around 1.2858 dollars per euro. The growth of the euro impede market participants' expectations statistics has the U.S., which will be released on Thursday and Friday this week. It is assumed that the number of requests for unemployment benefit fell for the week and the index of manufacturing activity rose in August. However, many economists expect over the next two to three months to reduce 1,23-1,14 euros to dollars / euros, and then, in the perspective of six months, a new wave of growth in the single currency. Such a scenario has a right to exist, as investors once again begin to analyze the situation with the debt crisis in the eurozone, analysts say United World Capital.
Oil prices continued to fall against the background of negative statistics
Fears that global economic growth slowing, Monday, August 16, continued to exert pressure on the oil quotations. The reason for their decline was the next portion of makrostatistiki the U.S. and Japan, offset by positive impact of weakening dollar.
As a result of trading on Aug. 16 at the New York Mercantile Exchange price of a futures contract for WTI crude oil for September delivery fell 0.15 dollars - up to 75.24 dollars per barrel. During the day the cost of the class drop to 74.86 dollars per barrel. At the InterContinental Exchange in London, the September contract for Brent Crude oil prices have fallen by 0.26 dollars, closing at 74.85 dollars per barrel.
On Monday, the main struggle for influence in the oil quotations unfolded between the dollar (weakening which usually increases the attractiveness of the "black gold" as an alternative investment) and stock exchanges on the one hand, and concerns about slowing economic growth (the consequence could be to reduce demand for raw materials) - other.
Despite the support of weakening the dollar (the exchange rate on August 16 fell against all major currencies with the euro decline was 0.5% - up to 1.2815 dollars / euros) and an intraday rise in stock exchange, the final outcome of trading on Aug. 16 determined makrostatistika .
At the beginning of the session a great disappointment to investors become Japan's GDP, suffered a fall in domestic demand and increase imports. Thus, the economy is in II quarter has grown almost (an increase of 0.1% in quarterly terms and by 0.4% per year), which was a surprise to analysts, the projected increase in GDP at 0.6% (by 2,3% in the annual comparison).
Oil poured into the fire index Empire State Manufacturing, reflecting the situation in the manufacturing sector of New York. In August the index rose by 7.01 points versus 5.08 points increase on the previous month, which nevertheless fell far short of the expectations of analysts had forecast growth of the indicator by 8 points.
"At first glance, a small rebound Empire State Manufacturing index indicates that the manufacturing sector has stabilized at relatively low levels - analyst Capital Economics. - Unfortunately, the more important components of the index show a different picture. Thus, the index of new orders fell to 14-month low - from plus 2.7 to minus 10.1 points, and the index of traffic fell to its lowest level in 16 months, down from plus 6.3 to minus 11.5 points. The index of employment, meanwhile jumped from 7.9 up 14.3 points, but it is unlikely the company manufacturing sector and will continue to hire more workers by a decline in the number of new orders. The only bright spot of the report was a component of capital costs (reflecting the perspectives in this area over the next six months), which recovered to 14.3 points in July to 22.9 points in August. It seems that despite the apparent fall in demand, companies are still willing to invest. In general, the published data were frankly disgusting and have intensified fears about what we can expect a hard landing. "
Finally, once again spoiled the mood of investors, data on U.S. housing sector. The index of business activity in this area, calculated by the National Association of Home Builders U.S. (NAHB), in August fell to 13 points against 14 points a month earlier and prognosis in 15 points. This is the third decline in a row, bringing the figure was the lowest since March 2009. Thus, the entire growth, the index showed during the last year against a background of economic recovery and the introduction of tax incentives, was offset by.
Meanwhile, as the negative macroeconomic indicators continue to fuel investors' fears of a possible decrease in demand for oil, analysts continue to raise forecasts of consumption of raw materials. Last week, ratings for the current and following years, the IEA increased (by 80 thousand and 50 thousand barrels. Per day, respectively) and OPEC (140 thousand barrels. Per day for both years).
The growth in demand for oil have a regular review and analysts Goldman Sachs. According to them, in the last two months of global demand in this market exceeded supply. The bank explained by the fact that oil reserves are stored in tankers, fell to 18-month low. "Now, when stocks in the floating storage dropped to its lowest level in 18 months, we expect that in the coming months will begin to fall and land reserves - experts said. - In view of the fact that global stocks tend to be seasonal growth in the second half We believe that the rate of decline of world oil reserves will grow. "
As a result of trading on Aug. 16 at the New York Mercantile Exchange price of a futures contract for WTI crude oil for September delivery fell 0.15 dollars - up to 75.24 dollars per barrel. During the day the cost of the class drop to 74.86 dollars per barrel. At the InterContinental Exchange in London, the September contract for Brent Crude oil prices have fallen by 0.26 dollars, closing at 74.85 dollars per barrel.
On Monday, the main struggle for influence in the oil quotations unfolded between the dollar (weakening which usually increases the attractiveness of the "black gold" as an alternative investment) and stock exchanges on the one hand, and concerns about slowing economic growth (the consequence could be to reduce demand for raw materials) - other.
Despite the support of weakening the dollar (the exchange rate on August 16 fell against all major currencies with the euro decline was 0.5% - up to 1.2815 dollars / euros) and an intraday rise in stock exchange, the final outcome of trading on Aug. 16 determined makrostatistika .
At the beginning of the session a great disappointment to investors become Japan's GDP, suffered a fall in domestic demand and increase imports. Thus, the economy is in II quarter has grown almost (an increase of 0.1% in quarterly terms and by 0.4% per year), which was a surprise to analysts, the projected increase in GDP at 0.6% (by 2,3% in the annual comparison).
Oil poured into the fire index Empire State Manufacturing, reflecting the situation in the manufacturing sector of New York. In August the index rose by 7.01 points versus 5.08 points increase on the previous month, which nevertheless fell far short of the expectations of analysts had forecast growth of the indicator by 8 points.
"At first glance, a small rebound Empire State Manufacturing index indicates that the manufacturing sector has stabilized at relatively low levels - analyst Capital Economics. - Unfortunately, the more important components of the index show a different picture. Thus, the index of new orders fell to 14-month low - from plus 2.7 to minus 10.1 points, and the index of traffic fell to its lowest level in 16 months, down from plus 6.3 to minus 11.5 points. The index of employment, meanwhile jumped from 7.9 up 14.3 points, but it is unlikely the company manufacturing sector and will continue to hire more workers by a decline in the number of new orders. The only bright spot of the report was a component of capital costs (reflecting the perspectives in this area over the next six months), which recovered to 14.3 points in July to 22.9 points in August. It seems that despite the apparent fall in demand, companies are still willing to invest. In general, the published data were frankly disgusting and have intensified fears about what we can expect a hard landing. "
Finally, once again spoiled the mood of investors, data on U.S. housing sector. The index of business activity in this area, calculated by the National Association of Home Builders U.S. (NAHB), in August fell to 13 points against 14 points a month earlier and prognosis in 15 points. This is the third decline in a row, bringing the figure was the lowest since March 2009. Thus, the entire growth, the index showed during the last year against a background of economic recovery and the introduction of tax incentives, was offset by.
Meanwhile, as the negative macroeconomic indicators continue to fuel investors' fears of a possible decrease in demand for oil, analysts continue to raise forecasts of consumption of raw materials. Last week, ratings for the current and following years, the IEA increased (by 80 thousand and 50 thousand barrels. Per day, respectively) and OPEC (140 thousand barrels. Per day for both years).
The growth in demand for oil have a regular review and analysts Goldman Sachs. According to them, in the last two months of global demand in this market exceeded supply. The bank explained by the fact that oil reserves are stored in tankers, fell to 18-month low. "Now, when stocks in the floating storage dropped to its lowest level in 18 months, we expect that in the coming months will begin to fall and land reserves - experts said. - In view of the fact that global stocks tend to be seasonal growth in the second half We believe that the rate of decline of world oil reserves will grow. "
Forex: the market rebound began
Last week there was a mass exodus of players from risky assets to the dollar zone. At the same time five days a week dollar, all five days and strengthened. Particularly violent was the fall of the euro. He lost 550 points. But on Monday, August 16, the restoration of a single European.
On Monday morning there was a rebound from the strong level of support for 1,275 dollars / euros, but the reversal of trends is difficult to call. From a technical point of view on the currency chart reversal pattern occurs "head-shoulders, and the current purchase euros - just the calm before the new mass sales. In the middle of the week again to start the massive purchase of conservative currencies - the dollar and especially the yen.
This is especially significant for the Japanese yen. Currency reached a maximum of 15 years against the dollar. However, the state of the Japanese economy can not be called ideal. But strengthen the yen will only undermine the country's growth driver - export potential. How long is destructive buying "Japanese women" is unclear, but one recent case law, employees visual aid harm of excessive currency appreciation, is an example of Greece.
One way or another pressure on the yen in recent days have eased. For one dollar you can help out 85.8 yen. In relation to the dollar rising and the euro, British pound decline has slowed. All this indicates the end of the first round of the transition in conservative currency. But how will these rounds in the current wave of reduction is not very clear.
On Monday morning there was a rebound from the strong level of support for 1,275 dollars / euros, but the reversal of trends is difficult to call. From a technical point of view on the currency chart reversal pattern occurs "head-shoulders, and the current purchase euros - just the calm before the new mass sales. In the middle of the week again to start the massive purchase of conservative currencies - the dollar and especially the yen.
This is especially significant for the Japanese yen. Currency reached a maximum of 15 years against the dollar. However, the state of the Japanese economy can not be called ideal. But strengthen the yen will only undermine the country's growth driver - export potential. How long is destructive buying "Japanese women" is unclear, but one recent case law, employees visual aid harm of excessive currency appreciation, is an example of Greece.
One way or another pressure on the yen in recent days have eased. For one dollar you can help out 85.8 yen. In relation to the dollar rising and the euro, British pound decline has slowed. All this indicates the end of the first round of the transition in conservative currency. But how will these rounds in the current wave of reduction is not very clear.
Forex: the players will go to the dollar zone
After a very sharp rise in the dollar foreign exchange market begins to rebound. Friday, August 13, started correction pair euro / dollar after four sessions of the fall of the euro, for which he dropped to 500 points. In general, the opportunity to start technical correction.
On Friday, one euro was worth 1,285 dollars, and, apparently, the correction will continue. There is only a matter of how long. Players will win back all 500 points back, or be limited to only 250 points? No simple answers. However, most likely, the euro went to a local maximum. Perhaps the players will form a reversal pattern "double top", which takes the remaining time before the end of August, and already then, in September, will begin aggressive sales of the single currency. However, it should be noted that the current wave of decline of the euro at any time to be reactivated because the target level - local uptrend line - was not achieved.
Several weaker and the yen it was trading at around 86 yen to the dollar. Apparently, players will take a small break in buying the Japanese currency.
Forex market started corrective movement. However, their stability is a big question. Any negative statistics from the U.S. is able to re-strengthen the dollar, as it may seem. And if the bad by statistical data will be released in Europe or Japan, the flight to the dollar to take mass character. Thus, in any case, we are expected to rise U.S. currency.
On Friday, one euro was worth 1,285 dollars, and, apparently, the correction will continue. There is only a matter of how long. Players will win back all 500 points back, or be limited to only 250 points? No simple answers. However, most likely, the euro went to a local maximum. Perhaps the players will form a reversal pattern "double top", which takes the remaining time before the end of August, and already then, in September, will begin aggressive sales of the single currency. However, it should be noted that the current wave of decline of the euro at any time to be reactivated because the target level - local uptrend line - was not achieved.
Several weaker and the yen it was trading at around 86 yen to the dollar. Apparently, players will take a small break in buying the Japanese currency.
Forex market started corrective movement. However, their stability is a big question. Any negative statistics from the U.S. is able to re-strengthen the dollar, as it may seem. And if the bad by statistical data will be released in Europe or Japan, the flight to the dollar to take mass character. Thus, in any case, we are expected to rise U.S. currency.
Oil prices fell against the background of poor statistics
Market participants had oil trading session Wednesday, August 11, in deep dejection. Macroeconomic news, which came from two main consumers of hydrocarbons (U.S. and China), became another evidence of slowing economic recovery, thus depriving investors hope for further improvement in the demand for "black gold". Additional pressure on the quotations of oil futures have had a downturn in equity markets and the strengthening of the dollar. Not pleased with the bidders and regular data on stocks: report U.S. Department of Energy (US Department of Energy) has shown growth in gasoline stocks and a significant reduction in the supply of oil to the refinery of the country.
As a result of trades on Aug. 11 at the New York Mercantile Exchange price of a futures contract for WTI crude oil for September delivery fell 2.23 dollars - up to 78.02 dollars per barrel. At the InterContinental Exchange in London, the September contract for Class Brent Crude prices have fallen by 2.96 dollars to close at a mark of 77.64 dollars per barrel.
Growth of the Chinese economy seems to be falling faster than anticipated even a couple of months ago. The most important conclusion that can be done on the basis of responses to the environment of China's macro-economic data, was that the June weakness of the industrial countries was not a casual one-off phenomenon. The July figures were equally bad, analysts Capital Economics. According to statistics, last month, industrial production in China increased by 13,4% (which, incidentally, consistent with the expectations of analysts) against the increase of 13,7% in June and 16,5% in May.
Weaker than expected, proved and figures on investment. Since the beginning of the year rose to 24,9% in annual terms, against the projected 25.3%. Fell in China and the growth rate of retail sales: in July the increase rate was 17.9% in annual comparison, which is lower than the values of the previous month (18.3%), and the expectations of experts (18.5%).
In addition, very upset the oil market participants a statement of fact that the Fed slowing United States economy. This also contributed to the massive sales of oil futures. Recall the past up to the Aug. 10 meeting of the Committee on Open Market decided to retain the key discount rate in the range of 0-0,25% per annum, noting that the data for July showed a slowdown in U.S. economic growth. According to the agency to sustain the economic recovery of funds received from the federal agency securities and securities secured by a mortgage, will be reinvested in long-term U.S. Treasury bonds.
Let down the oil market and the correlation with stock indices and the dynamics of the dollar. Investors in the stock exchange and currency markets are not convinced the measures that are intended to take the Fed. "The infusion of liquidity into the system through the application of the purchase of debt securities will not help the average citizen of the country - said the chief market strategist at U.S. consulting company Banyan Partners Robert Pavlik. - This will not create jobs and help the housing market."
Against this background, as well as a consequence of negative news from China's share prices have collapsed, pulling the prices for oil. As a result of trading on Wednesday, the broad market index Standard & Poor's 500 fell 2.82%, the index of "blue chips" Dow Jones Industrial Average lost 2.49%, and high-tech NASDAQ index fell 3.01%. In Europe, Germany's DAX fell by 2,1%, the British FTSE 100 - on 2,44%, the French CAC40 - on 2,74%.
As a result of trades on Aug. 11 at the New York Mercantile Exchange price of a futures contract for WTI crude oil for September delivery fell 2.23 dollars - up to 78.02 dollars per barrel. At the InterContinental Exchange in London, the September contract for Class Brent Crude prices have fallen by 2.96 dollars to close at a mark of 77.64 dollars per barrel.
Growth of the Chinese economy seems to be falling faster than anticipated even a couple of months ago. The most important conclusion that can be done on the basis of responses to the environment of China's macro-economic data, was that the June weakness of the industrial countries was not a casual one-off phenomenon. The July figures were equally bad, analysts Capital Economics. According to statistics, last month, industrial production in China increased by 13,4% (which, incidentally, consistent with the expectations of analysts) against the increase of 13,7% in June and 16,5% in May.
Weaker than expected, proved and figures on investment. Since the beginning of the year rose to 24,9% in annual terms, against the projected 25.3%. Fell in China and the growth rate of retail sales: in July the increase rate was 17.9% in annual comparison, which is lower than the values of the previous month (18.3%), and the expectations of experts (18.5%).
In addition, very upset the oil market participants a statement of fact that the Fed slowing United States economy. This also contributed to the massive sales of oil futures. Recall the past up to the Aug. 10 meeting of the Committee on Open Market decided to retain the key discount rate in the range of 0-0,25% per annum, noting that the data for July showed a slowdown in U.S. economic growth. According to the agency to sustain the economic recovery of funds received from the federal agency securities and securities secured by a mortgage, will be reinvested in long-term U.S. Treasury bonds.
Let down the oil market and the correlation with stock indices and the dynamics of the dollar. Investors in the stock exchange and currency markets are not convinced the measures that are intended to take the Fed. "The infusion of liquidity into the system through the application of the purchase of debt securities will not help the average citizen of the country - said the chief market strategist at U.S. consulting company Banyan Partners Robert Pavlik. - This will not create jobs and help the housing market."
Against this background, as well as a consequence of negative news from China's share prices have collapsed, pulling the prices for oil. As a result of trading on Wednesday, the broad market index Standard & Poor's 500 fell 2.82%, the index of "blue chips" Dow Jones Industrial Average lost 2.49%, and high-tech NASDAQ index fell 3.01%. In Europe, Germany's DAX fell by 2,1%, the British FTSE 100 - on 2,44%, the French CAC40 - on 2,74%.
Forex: Yen as a factor in stopping the production
The effect of recent Fed actions take long by the standards of the market Forex. Whole day went on buying the dollar as a safe haven. At the same time U.S. currency has shown a somersault, some were not even during massive sales in the period of the debt crisis in Europe. For example, one session on Wednesday, 11 August, the dollar strengthened against the euro in three figures. The growth of 300 points per day - a consequence of a "thin" market.
Summer months, especially August - a period of calm in global financial markets. And when the U.S. Federal Reserve takes such important decisions as of Tuesday, a small number of buyers in the market simply is not able to cope with the barrage of applications for sale. But even this is not important.
Attention Forex market in recent years focused on the yen - it is traditionally considered the most conservative currency, against all challenges. Meanwhile, reports of overdue defaulted Japan, but investors for some reason can not keep these two facts together. Job "Great Wall" in investment banks, traders and separates the insiders, is obvious.
As a result, the yen on reports Fed has strengthened to 15-year high. Against this backdrop, the news began to appear on the folding of entire industries in Japan. This is evidence that the economy and how it feels in the last 20 years is not the best way is on the verge of production collapse. Exporters can not cope with the load. But that is no reason to abandon the yen. She continues to strengthen its position, and, apparently, until it suits all. Thus, the foreign exchange market is formed by another potential target of a new wave of recession.
Summer months, especially August - a period of calm in global financial markets. And when the U.S. Federal Reserve takes such important decisions as of Tuesday, a small number of buyers in the market simply is not able to cope with the barrage of applications for sale. But even this is not important.
Attention Forex market in recent years focused on the yen - it is traditionally considered the most conservative currency, against all challenges. Meanwhile, reports of overdue defaulted Japan, but investors for some reason can not keep these two facts together. Job "Great Wall" in investment banks, traders and separates the insiders, is obvious.
As a result, the yen on reports Fed has strengthened to 15-year high. Against this backdrop, the news began to appear on the folding of entire industries in Japan. This is evidence that the economy and how it feels in the last 20 years is not the best way is on the verge of production collapse. Exporters can not cope with the load. But that is no reason to abandon the yen. She continues to strengthen its position, and, apparently, until it suits all. Thus, the foreign exchange market is formed by another potential target of a new wave of recession.
Stock markets in Europe closed fall more than 2%
Trading in shares in Europe have opened decrease in leading indexes after the U.S. market and Asia. The results of the meeting of the U.S. Federal Reserve, apparently not met the expectations of bidders. Following the meeting, the Fed renewed incentives of the American economy. She said it planned to reinvest the proceeds of mortgage-backed securities in the purchase of long-term U.S. Treasury bonds. However, players of the stock market were not too happy with these statements and focused on the aspect of fragile recovery of the U.S. economy. Negative market indicators added the U.S. trade balance. In June of 2010. trade deficit rose in May compared with a value up to 49.90 billion dollars (forecast - 42.5 billion dollars).
Against the backdrop of negative news macroeconomics stock trading in the United States reopened a sharp decline in the leading index, which has placed additional pressure on European indexes. Stronger than the rest of the paper hit the banking sector, as well as mining shares, as investors sold their securities for fear of slowing the recovery of the world economy. As a result of the day the French CAC 40 Index dropped to 2,74% - to 3628.29 points, Germany's DAX - 2,10% - to 6154.07 points, the British FTSE 100 - on 2,44% - to 5245.21 points .
British energy company International Power and the French GdF Suez agreed to establish a joint corporation, which should become the largest energy company in the world. Its total generating capacity will reach over 66 GW, and annual income - some 86 billion euros. Under the deal, located in the UK, Turkey and beyond Europe's assets, 35% owned by French government GdF Suez, will be transferred to International Power. Instead, the French company will be in the new company's 70% stake, while the British organization will be the remaining 30%. Corporation will be called United New International Power. Its headquarters will be located in London, while shares - listed on the London Stock Exchange. Shares of French GdF Suez cheaper at 2.82%.
Net profit of Swiss food producer Nestle SA the first half of 2010. increased by 7,5% and amounted to 5.45 billion Swiss francs (3.93 billion euros), whereas a year earlier this figure was recorded at 5.07 billion Swiss francs. Sales of Nestle up to the reporting half-year reached 55.34 billion Swiss francs (39.93 billion euros), which is 5,9% more than last year, amounting to 52.27 billion Swiss francs. Indicator EBIT (earnings minus interest expenses and taxes) for January-June 2010. increased by 13,6% and amounted to 8.38 billion Swiss francs (6.05 billion euros) against 7.38 billion Swiss francs for the same period a year earlier. Quotes of securities of the company fell by 0.19%.
The share price of German tourism group TUI AG, which owns a network of travel agencies and tour operators in Europe, fell to 2.73%. Net loss for the TUI III quarter 2009-2010 financial year was reduced by 98%, amounting to 9.4 million euros, while for the same period a year earlier the company received a loss of $ 470.1 million Euros. The company's turnover for the III quarter of 2009-2010 fiscal year dropped by more than 4% and amounted to 4 billion euros against 4.2 billion euros a year earlier. Gross profit for the last quarter fell by 15.2% and amounted to 330.9 million euros against a similar figure for the III quarter of 2008-2009 financial year, who was at around 390.2 million euros.
Against the backdrop of negative news macroeconomics stock trading in the United States reopened a sharp decline in the leading index, which has placed additional pressure on European indexes. Stronger than the rest of the paper hit the banking sector, as well as mining shares, as investors sold their securities for fear of slowing the recovery of the world economy. As a result of the day the French CAC 40 Index dropped to 2,74% - to 3628.29 points, Germany's DAX - 2,10% - to 6154.07 points, the British FTSE 100 - on 2,44% - to 5245.21 points .
British energy company International Power and the French GdF Suez agreed to establish a joint corporation, which should become the largest energy company in the world. Its total generating capacity will reach over 66 GW, and annual income - some 86 billion euros. Under the deal, located in the UK, Turkey and beyond Europe's assets, 35% owned by French government GdF Suez, will be transferred to International Power. Instead, the French company will be in the new company's 70% stake, while the British organization will be the remaining 30%. Corporation will be called United New International Power. Its headquarters will be located in London, while shares - listed on the London Stock Exchange. Shares of French GdF Suez cheaper at 2.82%.
Net profit of Swiss food producer Nestle SA the first half of 2010. increased by 7,5% and amounted to 5.45 billion Swiss francs (3.93 billion euros), whereas a year earlier this figure was recorded at 5.07 billion Swiss francs. Sales of Nestle up to the reporting half-year reached 55.34 billion Swiss francs (39.93 billion euros), which is 5,9% more than last year, amounting to 52.27 billion Swiss francs. Indicator EBIT (earnings minus interest expenses and taxes) for January-June 2010. increased by 13,6% and amounted to 8.38 billion Swiss francs (6.05 billion euros) against 7.38 billion Swiss francs for the same period a year earlier. Quotes of securities of the company fell by 0.19%.
The share price of German tourism group TUI AG, which owns a network of travel agencies and tour operators in Europe, fell to 2.73%. Net loss for the TUI III quarter 2009-2010 financial year was reduced by 98%, amounting to 9.4 million euros, while for the same period a year earlier the company received a loss of $ 470.1 million Euros. The company's turnover for the III quarter of 2009-2010 fiscal year dropped by more than 4% and amounted to 4 billion euros against 4.2 billion euros a year earlier. Gross profit for the last quarter fell by 15.2% and amounted to 330.9 million euros against a similar figure for the III quarter of 2008-2009 financial year, who was at around 390.2 million euros.
The U.S. Federal Reserve did not change the basic rate and renewed incentives
The U.S. Federal Reserve decided to keep the key discount rate in the range 0-0,25% per annum, said the Fed released the results of which ended Aug. 10 meeting of the Open Market (FOMC). This decision is anticipated by most analysts.
As noted in a press release the Federal Reserve, according to the July Operations Committee on the open market, vosstavlenie the U.S. economy slowed. The costs of citizens has increased, but their purchasing power is constrained by a number of obstacles, in particular high unemployment. With this and the related decision of the Fed rate, which is taken in order to give ground for the emergence of conditions to accelerate economic recovery.
In addition, the U.S. Federal Reserve resumed incentives the U.S. economy. Thus, in a press release agency says that it will reinvest the proceeds of mortgage-backed securities that were previously redeemed during the crisis in the purchase of long-term U.S. Treasury bonds. The Fed explained this step necessary to support economic reconstruction, which in recent months has slowed down.
Fed's key rate - the so-called interest rate on federal funds rate. This task (targetiruemaya) rate at which banks offer their excess reserves held in the accounts of the Fed, under the overnight credit to other banks. The key rate is at a level 0-0,25% since December 2008. The Fed reduced its record low, to provide the necessary monetary conditions for the early withdrawal of the economy out of recession.
As noted in a press release the Federal Reserve, according to the July Operations Committee on the open market, vosstavlenie the U.S. economy slowed. The costs of citizens has increased, but their purchasing power is constrained by a number of obstacles, in particular high unemployment. With this and the related decision of the Fed rate, which is taken in order to give ground for the emergence of conditions to accelerate economic recovery.
In addition, the U.S. Federal Reserve resumed incentives the U.S. economy. Thus, in a press release agency says that it will reinvest the proceeds of mortgage-backed securities that were previously redeemed during the crisis in the purchase of long-term U.S. Treasury bonds. The Fed explained this step necessary to support economic reconstruction, which in recent months has slowed down.
Fed's key rate - the so-called interest rate on federal funds rate. This task (targetiruemaya) rate at which banks offer their excess reserves held in the accounts of the Fed, under the overnight credit to other banks. The key rate is at a level 0-0,25% since December 2008. The Fed reduced its record low, to provide the necessary monetary conditions for the early withdrawal of the economy out of recession.
Forex: Correction has begun to grow
The euro stood observed in the last week of aggressive growth. Monday, August 9, began reducing the single currency against the dollar, but it was negligible. This correction to the growth began on Tuesday - for the morning Asian session on August 10 euro has lost almost a figure, and, apparently, this player will not rest.
At the same time talk about the turn of the European currency is still early. To begin full-scale need to reduce the formation of reversal pattern "double top" or "head and shoulders. This weakening of the euro is not a cardinal change of the macroeconomic background. Statistics from Europe still looks stronger than the American. However, the debt of the euro area are still being felt. At 9:00 Moscow time on Tuesday, one euro was worth U.S. $ 1,324
Reducing currency of the Old World comes amid strengthening dollar. This last is growing not only against the euro, but the pound sterling and the yen. All this testifies to the turn, and that the players begin to doubt the feasibility of flight from the dollar zone. Of course, in the near future we can expect rising conflict in the currency market, but the seed sown in the correction of fertile soil.
At the same time talk about the turn of the European currency is still early. To begin full-scale need to reduce the formation of reversal pattern "double top" or "head and shoulders. This weakening of the euro is not a cardinal change of the macroeconomic background. Statistics from Europe still looks stronger than the American. However, the debt of the euro area are still being felt. At 9:00 Moscow time on Tuesday, one euro was worth U.S. $ 1,324
Reducing currency of the Old World comes amid strengthening dollar. This last is growing not only against the euro, but the pound sterling and the yen. All this testifies to the turn, and that the players begin to doubt the feasibility of flight from the dollar zone. Of course, in the near future we can expect rising conflict in the currency market, but the seed sown in the correction of fertile soil.
Oil prices fell on the background data on employment in the U.S.
Oil market concluded last week in negative territory. Quotes fell against the background of regular data on the U.S. job market. We look forward to the figures for employment in the non-agricultural sector of the country (Non-farm payrolls) were worse than analysts' forecasts, serving as another indication of the weakness of the labor market. For bidders American oil makrostatistika became another blow to hopes for a speedy recovery of demand for energy.
As a result of trades on Friday, August 6 at the New York Mercantile Exchange price of a futures contract on the mark WTI for September delivery fell 1.31 dollars - up to 80.7 dollars per barrel. At the InterContinental Exchange in London, the September contract for Class Brent Crude it fell by 1.45 dollars to close at a mark of 80.16 dollars per barrel.
Total number of jobs in the United States declined in July at 131 thousand Despite the fact that the main cause of the fall rate was the decreased number of workers temporarily employed for the census (148 thousand), the dynamics of employment in other areas, too, has disappointed investors . Thus, although in the past month in the private sector had been hired to work 71 thousand people, this figure was below expectations (90 thousand). Moreover, this component showed a positive trend because the data for the previous month was revised downwards (from 83 thousand to 31 thousand).
"Despite the need for an amendment to reduce the state's temporarily hired for the census, a critical analysis of the July employment report points to the fact that the U.S. labor market is still lagging behind the pace of recovery from the country's economy as a whole - analysts said Canadian Imperial Bank of Commerce . - Weak employment dynamics supports our view that the Reserve will keep interest rates unchanged until the end of 2012. In addition, it increases the weight of arguments in favor of additional monetary incentives provided by the central bank, although it is highly unlikely that the report is significant enough to induce the FOMC to take this step at the next meeting.
Data on employment in the U.S. have had a very negative impact on the dynamics of the oil market on Friday. "The fact that the U.S. economy creates a lack of jobs, is now the fundamental news for the oil market - commented analyst on energy Citi Futures Perspective Tim Evans. - There is no indication that the situation would soon change. Doubts about demand is present at the market, and oil reserves remain at a high level. "
Friday's macro-economic background has caused the fall of stock indices and the weakening dollar, reducing the price of oil. Index broad market Standard & Poor's 500 dropped to 0.37%, the index of "blue chips" Dow Jones Industrial Average lost 0.20%, and high-tech NASDAQ fell by 0,2%. In Europe, Germany's DAX fell 1.17%, the British FTSE 100 - on 0,62%, French CAC 40 - at 1.28%.
"Oil prices follow equity markets for some months. Data on employment put pressure on share prices, and the" black gold "followed behind them" - said president of the American brokerage Excel Futures Inc. Mark Waggoner.
Dollar August 6 fell against the euro on 0,7% - to 1.3283 dollars / euros. The weakening U.S. dollar increases the attractiveness of oil as an alternative investment.
As a result of trades on Friday, August 6 at the New York Mercantile Exchange price of a futures contract on the mark WTI for September delivery fell 1.31 dollars - up to 80.7 dollars per barrel. At the InterContinental Exchange in London, the September contract for Class Brent Crude it fell by 1.45 dollars to close at a mark of 80.16 dollars per barrel.
Total number of jobs in the United States declined in July at 131 thousand Despite the fact that the main cause of the fall rate was the decreased number of workers temporarily employed for the census (148 thousand), the dynamics of employment in other areas, too, has disappointed investors . Thus, although in the past month in the private sector had been hired to work 71 thousand people, this figure was below expectations (90 thousand). Moreover, this component showed a positive trend because the data for the previous month was revised downwards (from 83 thousand to 31 thousand).
"Despite the need for an amendment to reduce the state's temporarily hired for the census, a critical analysis of the July employment report points to the fact that the U.S. labor market is still lagging behind the pace of recovery from the country's economy as a whole - analysts said Canadian Imperial Bank of Commerce . - Weak employment dynamics supports our view that the Reserve will keep interest rates unchanged until the end of 2012. In addition, it increases the weight of arguments in favor of additional monetary incentives provided by the central bank, although it is highly unlikely that the report is significant enough to induce the FOMC to take this step at the next meeting.
Data on employment in the U.S. have had a very negative impact on the dynamics of the oil market on Friday. "The fact that the U.S. economy creates a lack of jobs, is now the fundamental news for the oil market - commented analyst on energy Citi Futures Perspective Tim Evans. - There is no indication that the situation would soon change. Doubts about demand is present at the market, and oil reserves remain at a high level. "
Friday's macro-economic background has caused the fall of stock indices and the weakening dollar, reducing the price of oil. Index broad market Standard & Poor's 500 dropped to 0.37%, the index of "blue chips" Dow Jones Industrial Average lost 0.20%, and high-tech NASDAQ fell by 0,2%. In Europe, Germany's DAX fell 1.17%, the British FTSE 100 - on 0,62%, French CAC 40 - at 1.28%.
"Oil prices follow equity markets for some months. Data on employment put pressure on share prices, and the" black gold "followed behind them" - said president of the American brokerage Excel Futures Inc. Mark Waggoner.
Dollar August 6 fell against the euro on 0,7% - to 1.3283 dollars / euros. The weakening U.S. dollar increases the attractiveness of oil as an alternative investment.
Stock trades in the U.S. closed lower leading indexes
Stock trades in the U.S. on Friday, August 6, closed reduction of the leading index since the publication of the report of the US Department of Commerce on the level of unemployment in July 2010. Although the index itself remains at the previous month, reaching 9.5% (whereas analysts had expected it to rise 0.1 percentage points), investors alarmed by other data in the report. According to statistics, in July the number of jobs in the United States decreased by 131 thousand after it had been released on temporary duty 143 thousand employees engaged in conducting the census, held every ten years. Investors also were inclined to trust the economists who forecast a decline of this index on 87 thousand In addition, the number of jobs in the private sector increased by 71 thousand instead of the projected 83 thousand Moreover, according to revised data for June, the U.S. economy has lost in that month 221 thousand jobs, while previously reported a decrease of 125 thousand Thus, July was the second consecutive "unprofitable" for the labor market month.
Against this background, the negative dynamics demonstrated quotes companies banking sector, the first to respond to changes in the macroeconomic environment. Thus, the shares Bank of America, Citigroup and JPMorgan Chase have fallen in price on 0,4%, 1% and 2% respectively, the paper Wells Fargo and Goldman Sachs - by 0,5%. However, the operator of American Express credit cards could play suffered in the opening of the trading session loss - the price of shares on the day grew by 0,6%.
Bidding ended in the plus for companies that had submitted at the end of the trading week the financial statements. Among them was the largest U.S. mortgage company Fannie Mae (+7,1%), reported a decrease in net loss attributable to shareholders of the shareholders, in the first half of 2010. compared with the first half of 2009. to 57,8% - to 16.18 billion dollars when the net loss of Fannie Mae in the II quarter of 2010. amounted to 3.12 billion dollars, which is 79,4% less net loss of 15.16 billion dollars in April-June 2009. Despite significant improvement in financial performance, the company reported that market conditions are still not very favorable, and therefore the need for government support for it in the near future will be just as relevant.
Favorable financial report also provided the American insurance group American International Group Inc. (AIG). The company reported that net loss in the first half of 2010. amounted to 161 million dollars, roughly 24 times less than the net loss for the same period last year. Adjusted earnings per share in the II quarter of 2010. amounted to $ 1.99 in the consensus forecast of analysts at the level of $ 0.99 These results prompted the price of AIG shares to rise - by 2.6% by the end of the day.
As expected, went up quotes of the second-largest producer of food products Kraft Foods. The financial report the company reported net profit available for distribution to shareholders, in the first half of 2010. at 89,6% - to 2.82 billion dollars, and revenue - by 25,6% - to 23.57 billion dollars the figures were higher than analysts' forecasts, but because investors have expressed keen interest in the securities of the company, which went up at the opening of trading platforms to 2,4%.
In the American stock exchanges continued to cheaper oil prices which dropped to 81.27 dollars per barrel. This factor caused the decrease in securities prices energy giants ExxonMobil (-1,2%) and ConocoPhillips (-1,3%), as well as oilfield Halliburton (-1,1%) and Schlumberger (-1,5%).
As a result of trading on August 6 the Dow Jones index dropped by 21.42 points (-0.2%) - up to 10,653.56 points, the index S & P-dropped to 4.17 points (-0.37%) - up to 1,121.64 points and the NASDAQ fell 4.59 points (-0.2%) - up to 2,288.47 points.
Against this background, the negative dynamics demonstrated quotes companies banking sector, the first to respond to changes in the macroeconomic environment. Thus, the shares Bank of America, Citigroup and JPMorgan Chase have fallen in price on 0,4%, 1% and 2% respectively, the paper Wells Fargo and Goldman Sachs - by 0,5%. However, the operator of American Express credit cards could play suffered in the opening of the trading session loss - the price of shares on the day grew by 0,6%.
Bidding ended in the plus for companies that had submitted at the end of the trading week the financial statements. Among them was the largest U.S. mortgage company Fannie Mae (+7,1%), reported a decrease in net loss attributable to shareholders of the shareholders, in the first half of 2010. compared with the first half of 2009. to 57,8% - to 16.18 billion dollars when the net loss of Fannie Mae in the II quarter of 2010. amounted to 3.12 billion dollars, which is 79,4% less net loss of 15.16 billion dollars in April-June 2009. Despite significant improvement in financial performance, the company reported that market conditions are still not very favorable, and therefore the need for government support for it in the near future will be just as relevant.
Favorable financial report also provided the American insurance group American International Group Inc. (AIG). The company reported that net loss in the first half of 2010. amounted to 161 million dollars, roughly 24 times less than the net loss for the same period last year. Adjusted earnings per share in the II quarter of 2010. amounted to $ 1.99 in the consensus forecast of analysts at the level of $ 0.99 These results prompted the price of AIG shares to rise - by 2.6% by the end of the day.
As expected, went up quotes of the second-largest producer of food products Kraft Foods. The financial report the company reported net profit available for distribution to shareholders, in the first half of 2010. at 89,6% - to 2.82 billion dollars, and revenue - by 25,6% - to 23.57 billion dollars the figures were higher than analysts' forecasts, but because investors have expressed keen interest in the securities of the company, which went up at the opening of trading platforms to 2,4%.
In the American stock exchanges continued to cheaper oil prices which dropped to 81.27 dollars per barrel. This factor caused the decrease in securities prices energy giants ExxonMobil (-1,2%) and ConocoPhillips (-1,3%), as well as oilfield Halliburton (-1,1%) and Schlumberger (-1,5%).
As a result of trading on August 6 the Dow Jones index dropped by 21.42 points (-0.2%) - up to 10,653.56 points, the index S & P-dropped to 4.17 points (-0.37%) - up to 1,121.64 points and the NASDAQ fell 4.59 points (-0.2%) - up to 2,288.47 points.
Forex: Dollar once again loses weight
On Friday, August 6, by inertia was broken in a powerful level of support for the dollar. Thus, the euro jumped immediately up to the mark 1,33 dollars / euros, breaking the single stroke sophisticated level 1,32. In addition, there has been many months and a maximum of yen to the U.S. currency - a mark 85 yen to the dollar. Finally, a couple of dollars with sterling withstood the most difficult level - 1,6 U.S. $ / pound. All this shows is not about the incredible "bull" power of the currencies, but only that the game against the U.S. dollar begins to acquire signs of "bubble".
In the period of acute crisis in the game to increase the U.S. currency on the background out terrible makrostatistiki the U.S.. Now the data on this country just simply weak, but the players believe it's a great excuse for selling the dollar. But do not forget that the problems in Europe did not disappear - budget deficits of the euro area will continue to beat records. Also in big trouble already and in Asia.
All this may lead to a new round of crisis. At the same time the dollar has a distinct advantage - he falls into a deflationary spiral. Thus, the fact that many economists had predicted at the peak of the crisis - hyperinflation postponed indefinitely. The economy is growing evidence that its further development will be on the Japanese script. Of course, a decade of stagnation of the American economy believe it is weak, but hyperinflation dollar in the current environment to provide even more difficult. And if we compare the prospects for the existence of U.S. currency and the euro or pound, the choice in favor of "American" increasingly evident.
Current growth - only correction before a new wave of dollar buying. Apparently, the train would move autumn, there are only random passengers disembark.
In the period of acute crisis in the game to increase the U.S. currency on the background out terrible makrostatistiki the U.S.. Now the data on this country just simply weak, but the players believe it's a great excuse for selling the dollar. But do not forget that the problems in Europe did not disappear - budget deficits of the euro area will continue to beat records. Also in big trouble already and in Asia.
All this may lead to a new round of crisis. At the same time the dollar has a distinct advantage - he falls into a deflationary spiral. Thus, the fact that many economists had predicted at the peak of the crisis - hyperinflation postponed indefinitely. The economy is growing evidence that its further development will be on the Japanese script. Of course, a decade of stagnation of the American economy believe it is weak, but hyperinflation dollar in the current environment to provide even more difficult. And if we compare the prospects for the existence of U.S. currency and the euro or pound, the choice in favor of "American" increasingly evident.
Current growth - only correction before a new wave of dollar buying. Apparently, the train would move autumn, there are only random passengers disembark.
Forex: Dollar falls too aggressively
The positions of the dollar on the Forex market has begun to take that immediately affected the market of oil and other commodities. Although the reduction in "American" at the moment is not aggressive, the currency becomes sufficiently "resold", and in the coming days, correction becomes more apparent.
For example in the market for euro / dollar euro was unable to take a key level - a mark 1,32 dollars / euros. This is a complex technical resistance, and the players are at this level, a significant number of option contracts, which indicates the confidence of participants in the integrity of this level in the coming months.
Technical chart pattern dollar / pound also showed significant oversold "American." Despite the fact that the British pound went up to the complex level of 1.6 dollars per pound, lay the groundwork for improving the British currency remains. Downtrend line is about a mark 1,64 dollars / lb. Nevertheless, "bears" are unlikely without a fight will pass mark of $ 1,6 / lb. There has been a key approach to a complex level of 85.4 and a couple of yen-dollar.
Thus, the market situation where to continue to reduce the dollar will need to take the key marks in several pairs. And provided that the current market "thin", and players on it a bit by selling such complex barriers will be very difficult. Especially when you consider that many large players open options positions at levels achieved during the summer in spring when the liquidity sites was much higher.
For example in the market for euro / dollar euro was unable to take a key level - a mark 1,32 dollars / euros. This is a complex technical resistance, and the players are at this level, a significant number of option contracts, which indicates the confidence of participants in the integrity of this level in the coming months.
Technical chart pattern dollar / pound also showed significant oversold "American." Despite the fact that the British pound went up to the complex level of 1.6 dollars per pound, lay the groundwork for improving the British currency remains. Downtrend line is about a mark 1,64 dollars / lb. Nevertheless, "bears" are unlikely without a fight will pass mark of $ 1,6 / lb. There has been a key approach to a complex level of 85.4 and a couple of yen-dollar.
Thus, the market situation where to continue to reduce the dollar will need to take the key marks in several pairs. And provided that the current market "thin", and players on it a bit by selling such complex barriers will be very difficult. Especially when you consider that many large players open options positions at levels achieved during the summer in spring when the liquidity sites was much higher.
Markets in Europe: the demand for bonds is restored
On Thursday, August 5, at the market of European government bonds continued to form a mixed dynamics quotes. The second consecutive day the bidders do not show unanimity, as volatility in the market is gaining momentum. Morning session was held in anticipation of the announcement of the base rate of the ECB and Bank of England. Investors ad rates did not show too much activity, making nonetheless opted for short-term debt obligations of Germany and France, and long-term British Gilts. No doubt that the ECB's base rate of refinancing will be the same time low of 1%, the players were buying short-term European bonds. However, after the announcement of bids, as well as after the release of macroeconomic statistics for Germany investors changed their focus and began to buy, on the contrary, long-term assets. Although it is recognized that market expectations were confirmed both in terms of rates of the ECB, and in the base rate of the Bank of England. And only in the last hour of trading on the London Stock Exchange the tendency to form a single upward price movements, which resulted in almost all the most liquid debt obligations of governments of the leading European countries had completed the daily price increases.
The nature of trades in the market of European government bonds also formed under the influence of macroeconomic statistics, issued in Germany. According to information provided by the Ministry of economy, the volume of industrial orders in June, more than twice exceeded expectations. This is explained by the fact that companies on the background of global economic recovery have increased investment in the development of their business. Thus, the volume of industrial orders (adjusted for seasonality and inflation) in June this year jumped in comparison with May at 3.2%, while analysts forecast a growth rate at 1.4%. In annual terms, the increase of industrial orders amounted to 24,6%, which also exceeded the expectations of experts, the projected growth rate to 21,6%. First of all, demand is growing for products such traditionally highly developed sectors of the German economy as automobile and industrial equipment. For example, the profit growth in the III-quarter to 7% of the largest German company Siemens AG is mainly due to increased demand for the company's products in Asia and Australia.
Experts note that the volume of exports in June soared by 5.7% due to a jump in 11,3% of the volume of industrial orders from European countries. The volume of industrial orders in the country increased by only 0,3%. Important role in the growth of demand for the products of German industrialists abroad, as is known, has weakening of the euro against the dollar, which contributed to increase the competitiveness of German companies in difficult circumstances recovery of the global economy.
Meanwhile, as already noted, neither the ECB nor the Bank of England did not deem it necessary to change its basic interest rates, leaving them at a record low of 1,0% and 0,5% respectively. Major central banks of Europe still believe the priority task of maintaining the recovery process of the economy. And, although the problem in the euro zone to curb inflation should not be so acute as in Britain, where the threshold of 2% is exceeded, the monetary authorities and the euro zone, and the Foggy Albion feel is still too early to weaken support for the economy increases in base rates of refinancing. President of the Bank of England Mervyn King, said in particular that leaves unchanged the program stimulates the economy of redemption of bonds of 200 billion pounds. However, among the nine members of the Committee on Monetary Policy Bank of England, there have been disagreements. If at the previous meeting of the committee, Andrew Sentance voted to increase the base rate, at the last meeting, contrary to general opinion was made by David Miles, warned his colleagues about the need to be ready to buy a larger amount of debt.
Thus, the demand for debt of Germany, France and the UK during the day significantly increased, resulting in most of the papers completed trades very substantial price increases. Following the fourth trading session of the week yield a two-year Bunds in Germany increased by 1 bp, and a decade - has dropped by 4 bp The spread between them has narrowed from 186 to 181 bp
The nature of trades in the market of European government bonds also formed under the influence of macroeconomic statistics, issued in Germany. According to information provided by the Ministry of economy, the volume of industrial orders in June, more than twice exceeded expectations. This is explained by the fact that companies on the background of global economic recovery have increased investment in the development of their business. Thus, the volume of industrial orders (adjusted for seasonality and inflation) in June this year jumped in comparison with May at 3.2%, while analysts forecast a growth rate at 1.4%. In annual terms, the increase of industrial orders amounted to 24,6%, which also exceeded the expectations of experts, the projected growth rate to 21,6%. First of all, demand is growing for products such traditionally highly developed sectors of the German economy as automobile and industrial equipment. For example, the profit growth in the III-quarter to 7% of the largest German company Siemens AG is mainly due to increased demand for the company's products in Asia and Australia.
Experts note that the volume of exports in June soared by 5.7% due to a jump in 11,3% of the volume of industrial orders from European countries. The volume of industrial orders in the country increased by only 0,3%. Important role in the growth of demand for the products of German industrialists abroad, as is known, has weakening of the euro against the dollar, which contributed to increase the competitiveness of German companies in difficult circumstances recovery of the global economy.
Meanwhile, as already noted, neither the ECB nor the Bank of England did not deem it necessary to change its basic interest rates, leaving them at a record low of 1,0% and 0,5% respectively. Major central banks of Europe still believe the priority task of maintaining the recovery process of the economy. And, although the problem in the euro zone to curb inflation should not be so acute as in Britain, where the threshold of 2% is exceeded, the monetary authorities and the euro zone, and the Foggy Albion feel is still too early to weaken support for the economy increases in base rates of refinancing. President of the Bank of England Mervyn King, said in particular that leaves unchanged the program stimulates the economy of redemption of bonds of 200 billion pounds. However, among the nine members of the Committee on Monetary Policy Bank of England, there have been disagreements. If at the previous meeting of the committee, Andrew Sentance voted to increase the base rate, at the last meeting, contrary to general opinion was made by David Miles, warned his colleagues about the need to be ready to buy a larger amount of debt.
Thus, the demand for debt of Germany, France and the UK during the day significantly increased, resulting in most of the papers completed trades very substantial price increases. Following the fourth trading session of the week yield a two-year Bunds in Germany increased by 1 bp, and a decade - has dropped by 4 bp The spread between them has narrowed from 186 to 181 bp
The U.S. market: investors are not taken decisive action
At Thursday, August 5, trades on the American stock market took place in a negative way against the background of macroeconomic news. Investors are looking for evidence of improvements in the economy and in recent weeks seem to have even begun to find them, but on Aug. 5 The situation is otherwise. In particular, the U.S., the number of primary applications for unemployment benefit for the week ending July 31 unexpectedly rose by 19 thousand and reached 479 thousand according to reports from U.S. Department of Labor (United States Department of Labor). Analysts also expect that the incipient weak tendency to reduce the number of layoffs to continue and the index of applications will be 455 thousand Moreover, upward reviewed data the previous week. Thus, we can say that in recent weeks to improve the overall trend has not changed - the number of hits since the late 2009g.ostaetsya at 440-480 thousand, which means that jobs are not enough, and with the economic recovery will have to wait.
As a result of trading on Aug. 5 the Dow Jones index dropped by 5.45 points (-0.05%) - up to 10,674.98 points, NASDAQ fell 10.51 points (-0.46%) - up to 2,293.06 points, S & P dropped to 1.43 points (-0.13%) - up to 1,125.81 points.
Not pleased and statistics on retail sales for July: an increase in sales relative to the level a year ago was virtually the same as the previous month, ie, positive changes are not visible. Yes, and where they come from, if unemployment is not falling, and consumers are becoming more economical, waiting for the deterioration of their situation? Against this background, the capitalization of Costco Wholesale Corp. decreased by 1,64%, Lowe's Companies Inc. - On 0,34%, The Home Depot Inc. - On 0,03%, Best Buy Co. Inc. - On 0,09%. Only in the last minutes of trading to get to the positive territory could Sears Holdings Corp. (+0,1%), Wal-Mart Stores Inc. (0.02%), and Staples Inc. (0.3%). Outsider sector became a youth clothing retailer JC Penney Company Inc. with the result of minus 7.68%: investors do not like the fact that the network performance for the past four months in a row do not justify the expectations.
On Thursday, one of the last among the leaders of the insurance industry reported back for the last quarter of medical insurance company Cigna Corp. Its net profit fell compared with the previous year, but still was higher than forecasts of experts. Additional positives has been the increased internal forecast for 2010 Corporation. - Now she plans to earn 4,1-4,4 per share, whereas previously expected only 3,75-4,15 dollars By the way, this is a very good yield - nearly 13% of current market capitalization. Following the session the quotations Cigna jumped 5.63%. Other industry representatives, had previously submitted a strong report, too, looked better than the market: Unitedhealth Group Inc. added 1,55%, WellPoint Inc. - 1,33%, MetLife Inc. - 0,41%, Express Scripts Inc. - 1,31%, Aflac Inc. - 0,45%, Aetna Inc. - 1,66%.
A strong report for the full 2009-2010 fiscal year on Aug. 5 was presented by one of the largest media companies in the world of News Corp. Corporations have to cope with the problems and came out of the loss of $ 3.31 billion a year earlier, earning 2.64 billion USD This result was achieved through active engagement with customers on television advertising. Forecast earnings for next year was slightly lower than analysts expected, because the company is predicting the continuation of rapid growth - this year it has already done all it could. Day of News Corp. completed its growth at 3.61%, although in the beginning of its session the quotations were considerably higher. For a successful corporation hauled as Walt Disney Co. (0.43%) and Time Warner Inc. (1.29%). The largest company in the U.S. direct broadcast DIRECTV Group Inc. (2.37%) is also able to please investors impressive returns, which managed to obtain due to the increase in the number of subscribers in Latin America and the increasing popularity of pay-TV HD.
Oil and gas companies on Thursday mainly became cheaper. This is not surprising, since the quotations of oil began to fall back on the level of 83 dollars per barrel. (Brent), a correction can be quite deep - that is to be feared. Last month Brent without kickbacks grew from 71 to 83 dollars per barrel., Therefore, be deemed sufficient correction down to 78.5 dollars per barrel. While the capitalization of Exxon Mobil Corp. fell to 0,02%, Occidental Petroleum Corp. - On 1,51%, EOG Resources Inc. - On 0,54%, Hess Corp. - On 0,34%. Better to look BP (+3,27%) and Anadarko Petroleum Corp. (2.71%). The latter refused to pay compensation BP volume of $ 1.2 billion for damage from the disaster in the Gulf of Mexico. "The catastrophe in the Gulf of Mexico could have been prevented, it was a direct result of decisions made mistakes and actions of BP. It is likely that what happened there and malicious actions of the leadership of this company," - said in a statement Anadarko. The growth of quotations BP helped obtain permission from the U.S. authorities to cementing top of the emergency wells.
August 5 U.S. stock indexes not far removed from the levels achieved. Optimists, of which now have a majority, believe that the "bulls" save their strength before the decisive "removal" of quotations up. Pessimists also believe that the rally lasted one month, came to an end, as all major corporations have already submitted their good financial returns, and macroeconomic statistics has ceased to please, - we find that to grow more than anything. In the medium term the market would go to the benefit of a good roll back down, which now awaits the majority, but short-term trend seems to define the Friday data on the labor market. Prior to their publication no decisive action taken would not, because the chances for continued growth (because the market until the "bull") and the rapid decline (the prerequisites for correction formed) is now absolutely equal.
As a result of trading on Aug. 5 the Dow Jones index dropped by 5.45 points (-0.05%) - up to 10,674.98 points, NASDAQ fell 10.51 points (-0.46%) - up to 2,293.06 points, S & P dropped to 1.43 points (-0.13%) - up to 1,125.81 points.
Not pleased and statistics on retail sales for July: an increase in sales relative to the level a year ago was virtually the same as the previous month, ie, positive changes are not visible. Yes, and where they come from, if unemployment is not falling, and consumers are becoming more economical, waiting for the deterioration of their situation? Against this background, the capitalization of Costco Wholesale Corp. decreased by 1,64%, Lowe's Companies Inc. - On 0,34%, The Home Depot Inc. - On 0,03%, Best Buy Co. Inc. - On 0,09%. Only in the last minutes of trading to get to the positive territory could Sears Holdings Corp. (+0,1%), Wal-Mart Stores Inc. (0.02%), and Staples Inc. (0.3%). Outsider sector became a youth clothing retailer JC Penney Company Inc. with the result of minus 7.68%: investors do not like the fact that the network performance for the past four months in a row do not justify the expectations.
On Thursday, one of the last among the leaders of the insurance industry reported back for the last quarter of medical insurance company Cigna Corp. Its net profit fell compared with the previous year, but still was higher than forecasts of experts. Additional positives has been the increased internal forecast for 2010 Corporation. - Now she plans to earn 4,1-4,4 per share, whereas previously expected only 3,75-4,15 dollars By the way, this is a very good yield - nearly 13% of current market capitalization. Following the session the quotations Cigna jumped 5.63%. Other industry representatives, had previously submitted a strong report, too, looked better than the market: Unitedhealth Group Inc. added 1,55%, WellPoint Inc. - 1,33%, MetLife Inc. - 0,41%, Express Scripts Inc. - 1,31%, Aflac Inc. - 0,45%, Aetna Inc. - 1,66%.
A strong report for the full 2009-2010 fiscal year on Aug. 5 was presented by one of the largest media companies in the world of News Corp. Corporations have to cope with the problems and came out of the loss of $ 3.31 billion a year earlier, earning 2.64 billion USD This result was achieved through active engagement with customers on television advertising. Forecast earnings for next year was slightly lower than analysts expected, because the company is predicting the continuation of rapid growth - this year it has already done all it could. Day of News Corp. completed its growth at 3.61%, although in the beginning of its session the quotations were considerably higher. For a successful corporation hauled as Walt Disney Co. (0.43%) and Time Warner Inc. (1.29%). The largest company in the U.S. direct broadcast DIRECTV Group Inc. (2.37%) is also able to please investors impressive returns, which managed to obtain due to the increase in the number of subscribers in Latin America and the increasing popularity of pay-TV HD.
Oil and gas companies on Thursday mainly became cheaper. This is not surprising, since the quotations of oil began to fall back on the level of 83 dollars per barrel. (Brent), a correction can be quite deep - that is to be feared. Last month Brent without kickbacks grew from 71 to 83 dollars per barrel., Therefore, be deemed sufficient correction down to 78.5 dollars per barrel. While the capitalization of Exxon Mobil Corp. fell to 0,02%, Occidental Petroleum Corp. - On 1,51%, EOG Resources Inc. - On 0,54%, Hess Corp. - On 0,34%. Better to look BP (+3,27%) and Anadarko Petroleum Corp. (2.71%). The latter refused to pay compensation BP volume of $ 1.2 billion for damage from the disaster in the Gulf of Mexico. "The catastrophe in the Gulf of Mexico could have been prevented, it was a direct result of decisions made mistakes and actions of BP. It is likely that what happened there and malicious actions of the leadership of this company," - said in a statement Anadarko. The growth of quotations BP helped obtain permission from the U.S. authorities to cementing top of the emergency wells.
August 5 U.S. stock indexes not far removed from the levels achieved. Optimists, of which now have a majority, believe that the "bulls" save their strength before the decisive "removal" of quotations up. Pessimists also believe that the rally lasted one month, came to an end, as all major corporations have already submitted their good financial returns, and macroeconomic statistics has ceased to please, - we find that to grow more than anything. In the medium term the market would go to the benefit of a good roll back down, which now awaits the majority, but short-term trend seems to define the Friday data on the labor market. Prior to their publication no decisive action taken would not, because the chances for continued growth (because the market until the "bull") and the rapid decline (the prerequisites for correction formed) is now absolutely equal.
Stock trading in Japan's Nikkei closed down a slight decrease
Stock trading in Japan resulted in reduction in the composite index Nikkei at 0,31%. Big losses avoided, as the quotations of the majority of Japanese companies have gone up under the influence of speculation of imminent economic recovery of European countries began to recover from the effects of a global financial crisis and the recent debt. This was largely triggered by the report published on the eve of the International Monetary Fund and the European Union on the status of the Greek finance, largely recovered after the adoption and implementation of austerity measures. In addition, Japanese investors were inclined to trust the consensus forecast of analysts predicting growth of industrial production of Great Britain and Germany, the statistics which will be published later on Friday, August 6.
Optimism beneficial influence on exchange rates: on Friday, once again there were strengthening the world's leading currencies, the dollar and euro against the yen. For this reason, the trading session will be continued this week marked another trend: the positive dynamics have once again demonstrated quotes multyprofiles Japanese companies with foreign markets, as investors were slightly more confident in their level of income from exports, and sensitive to the situation in currency markets.
In the "green" zone on the basis of the trading session proved to be quotations of securities of Japanese photographic equipment manufacturer Canon Inc. (0.9%), which receives 80% of the profits from sales in international markets. At the close of trading platforms in 2% increased the share price to the second-largest Japanese automaker Honda Motor Co. Similar dynamics have demonstrated quotes his rival Nissan Motor Co. (0.5%), one third of sales coming at markets outside of Japan. Favorable foreign exchange rates pushed up quotes the world's leading automaker Toyota Motor Corp.: Toyota securities went up by 0,3%. However, in the minus bidding ended for the Japanese manufacturer of industrial robots Fanuc Ltd., Whose shares have fallen in price on 1,2%.
Significant support to the market has also published on the eve of the financial report in Japan's largest telecommunications group Nippon Telegraph and Telephone Corporation (NTT). She reported an increase in net profits available for distribution to shareholders of the parent company, in I quarter of 2010. by 11,7% - to 155.94 billion yen (about 1.82 billion dollars at current exchange rates). Revenues from core business NTT for the reporting quarter reached 2.498 trillion yen (29.1 billion dollars), up 0.25% higher than for the I quarter of 2009. Recorded at 2.502 trillion yen. Operating profit for April-June 2010. increased by 4,3% and reached 339.65 billion yen (3.96 billion dollars), whereas the previous year rate is at around 325.77 billion yen. All the indicators were sufficiently confident, and therefore went up the share price to NTT, which grew at close to 3,2%.
As a result of trades Nikkei index fell by 29.82 points (-0.31%) - up to 9,624.10 points. Dollar / yen rose 0.05 yen against the rate of the previous trading day and was at the close of trading 86 yen to the dollar.
Optimism beneficial influence on exchange rates: on Friday, once again there were strengthening the world's leading currencies, the dollar and euro against the yen. For this reason, the trading session will be continued this week marked another trend: the positive dynamics have once again demonstrated quotes multyprofiles Japanese companies with foreign markets, as investors were slightly more confident in their level of income from exports, and sensitive to the situation in currency markets.
In the "green" zone on the basis of the trading session proved to be quotations of securities of Japanese photographic equipment manufacturer Canon Inc. (0.9%), which receives 80% of the profits from sales in international markets. At the close of trading platforms in 2% increased the share price to the second-largest Japanese automaker Honda Motor Co. Similar dynamics have demonstrated quotes his rival Nissan Motor Co. (0.5%), one third of sales coming at markets outside of Japan. Favorable foreign exchange rates pushed up quotes the world's leading automaker Toyota Motor Corp.: Toyota securities went up by 0,3%. However, in the minus bidding ended for the Japanese manufacturer of industrial robots Fanuc Ltd., Whose shares have fallen in price on 1,2%.
Significant support to the market has also published on the eve of the financial report in Japan's largest telecommunications group Nippon Telegraph and Telephone Corporation (NTT). She reported an increase in net profits available for distribution to shareholders of the parent company, in I quarter of 2010. by 11,7% - to 155.94 billion yen (about 1.82 billion dollars at current exchange rates). Revenues from core business NTT for the reporting quarter reached 2.498 trillion yen (29.1 billion dollars), up 0.25% higher than for the I quarter of 2009. Recorded at 2.502 trillion yen. Operating profit for April-June 2010. increased by 4,3% and reached 339.65 billion yen (3.96 billion dollars), whereas the previous year rate is at around 325.77 billion yen. All the indicators were sufficiently confident, and therefore went up the share price to NTT, which grew at close to 3,2%.
As a result of trades Nikkei index fell by 29.82 points (-0.31%) - up to 9,624.10 points. Dollar / yen rose 0.05 yen against the rate of the previous trading day and was at the close of trading 86 yen to the dollar.
The unemployment rate in the U.S. in July, unchanged at 9.5%
The unemployment rate in the U.S. in July 2010. compared to the previous month has not changed and amounted to 9,5%. These data provided the Ministry of Labour of the country (US Department of Labor). Analysts expected value of this indicator at the level of 9,6%.
Meanwhile, the number of jobs in non-agricultural sectors of the country in July 2010. compared with the previous month decreased by 131 thousand Analysts expected drop in employment, but not so strong - only 65 thousand Besides the revised data for the previous month were worse than the original: in June reducing the number of jobs in the economy amounted to 221 thousand, not 125 thousand, as previously reported.
The sharp deterioration in the July statistics on employment is primarily due to the fact that the federal government have parted ways with 143 thousand temporary workers who were hired for the 10-year U.S. census. At the same time reducing total employment was not as significant because of the increase in the number of jobs in the private sector by 71 thousand (in June - 31 th).
Currently in the U.S. the total number of unemployed is 14.6 million people, according to the materials the Ministry of Labour of the country.
Meanwhile, the number of jobs in non-agricultural sectors of the country in July 2010. compared with the previous month decreased by 131 thousand Analysts expected drop in employment, but not so strong - only 65 thousand Besides the revised data for the previous month were worse than the original: in June reducing the number of jobs in the economy amounted to 221 thousand, not 125 thousand, as previously reported.
The sharp deterioration in the July statistics on employment is primarily due to the fact that the federal government have parted ways with 143 thousand temporary workers who were hired for the 10-year U.S. census. At the same time reducing total employment was not as significant because of the increase in the number of jobs in the private sector by 71 thousand (in June - 31 th).
Currently in the U.S. the total number of unemployed is 14.6 million people, according to the materials the Ministry of Labour of the country.
Eurobonds: The market closed growth of quotations
On Friday, August 6, the Eurobond market was closed in plus. Issue-30 Russia has completed the bidding at 117.875% of face value, yield securities is 4.54% per annum. Issue Russia-28 closed at 179.69% of face value (yield - 5.622% per annum).
Against the background of strengthening the positions of regular Treasury bonds due to release of weak data on U.S. quotes sovereign debt of developing countries continued to consolidate. Investors did not rush to dispose of the securities in the external appearance of the negative: Spreads to UST remains very attractive point in Promsvyazbank.
However, in the corporate sector, analysts say the Bank of Moscow, the good news from Europe (Spain debt auction, testing, Greece, the press conference, Jean-Claude Trichet and the growth of industrial orders in Germany) have contributed to good growth over Russian Eurobonds.
Next week, investors' attention will be directed to the Fed decision on rates, but at the end of five days out statistics on consumer prices and retail sales in the U.S. in July. The Fed meeting will be held on Tuesday.
Against the background of strengthening the positions of regular Treasury bonds due to release of weak data on U.S. quotes sovereign debt of developing countries continued to consolidate. Investors did not rush to dispose of the securities in the external appearance of the negative: Spreads to UST remains very attractive point in Promsvyazbank.
However, in the corporate sector, analysts say the Bank of Moscow, the good news from Europe (Spain debt auction, testing, Greece, the press conference, Jean-Claude Trichet and the growth of industrial orders in Germany) have contributed to good growth over Russian Eurobonds.
Next week, investors' attention will be directed to the Fed decision on rates, but at the end of five days out statistics on consumer prices and retail sales in the U.S. in July. The Fed meeting will be held on Tuesday.
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