Will the rally?
Jan 11th, 2010 | By admin | Category: News International MarketsIt should be noted that the overall background excited by the majority of investors still that risk to grow into a sort of rally. The reasons for the enthusiasm for market participants now lack: there are quite a prolonged decline in the dollar, which has already reached almost to their annual lows in most currency markets, and the desire to find "security" asset. Here yesterday, the Central Bank of Australia announced an increase in interest rates, after which he took over from the markets of hydrocarbons and precious metals - gold yesterday in general has updated its historical high of $ 1,040.9 an ounce.
very interested yesterday reported that a number of countries (including even Saudi Arabia) are secret negotiations to replace U.S. dollar in international payments has led to what became an active stock market players to buy on their accumulation of different assets in the hope the fact that they are unlikely to depreciate in the event of any problems with the U.S. dollar, which caused the rally. How long to continue this optimism is hard to tell, but inflation can help this process.
On the U.S. market trading was closed by growth of leading indexes against the backdrop of rising prices for metals and oil. Papers of the country's largest aluminum producer Alcoa, which today published its financial report for the III quarter of 2009-year, prices increased by 3,5%. Shares in the country's largest gold mining company Newmont Mining on the basis of trades rose by 7% and 3.4% increased in price shares the world's largest mededobyvayuschey company Freeport-McMoRan Copper Gold. Well traded securities of companies in the oil sector. Shares the world's largest oil company ExxonMobil on the basis of trades went up by 1,6%, while shares of its competitors Chevron and ConocoPhillips rose by 1,7% and 1,2% respectively. Grew up on the results of the auctions listed companiesof the financial sector led to quotations the world's largest insurance company AIG (4,9 on the background information appeared on the market that the company intends to sell its Taiwanese unit of Primus Financial Holdings for $ 2 billion, by 0,3% and 0.2% respectively on the basis of trades increased shares of banks Goldman Sachs and Bank of America. At the 8% in the session, stocks have risen in price financial company Hartford Financial Services after UBS advised them to buy.
The oil futures market brands Light Sweet and Brent traded in the positive zone, which was associated with powerful shopping on the background of a significant weakening of the dollar on world currency market, which yesterday continued to lose against the euro and other currencies. Additional incentives for the purchase of oil futures created a growth of European and American sites. By the middle of bidding the dollar partially restored the position, since a number of major oil exporters has since denied this information. Given the lack of many basic indicators, now the entire course of trading on the oil market depends on the situation on financial markets.
Yesterday, nearer to the completion of trades, market participants remembered the macroeconomic indicators, as this U.S. Department of Energy will submit weekly data on reserves of oil and petroleum products. The market expects growth stocks of both oil and fuel, which will increase the already excessive supply of energy in the United States. Too large stocks do not yet allow the oil prices continue to rise above $ 72, despite the fact that this price level they reached in June. Over the past year, oil and petroleum products primarily grown, as the economic downturn has reduced demand for them. While even the most faint signs of economic recovery has not yet caused a significant reduction of stocks. As expected, last week's oil reserves in the U.S. rose by 1.7 million barrels, while distillate stocks rose by 200 000 barrels, while gasoline inventories - by 600 000 barrels. American Petroleum Institute reported yesterday that last week's oil reserves declined by 250 000 barrels, gasoline inventories rose by 500 000 barrels, while distillate stocks fell by 2.9 million barrels. Workload refineries amounted to 84,3%.
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