Yesterday

In the first day working week trading on Russia's market ended in the fall of the major indexes. As a result of trades on the MICEX index dropped 1,74% - to 1091.98 points and the RTS index - on 2,1% to 1,066.53 points. After the gap down opening, stocks traded in a narrow sideways range.

While the market continues to lateral movement in the wide corridor 1020-1130 points on MICEX and the reason for walking out of this corridor is not yet seen.

U.S. Market

Trades in the U.S. also ended lower stock indexes. The reason for this was another drop in the Chinese stock market, which triggered the decline in oil prices and the dumping of shares of oil companies and consumer sectors in the United States.

As a result of the auctions the index of blue chips Dow Jones Industrial Average fell 47.69 points, or 0.5%, to 9497 points. The index of wide market SP 500 closed lower at 8.31 points, or 0.8%, at around 1021 points. Hi-tech Nasdaq Composite closed down 19.71 points to fall, or 1%, at around 2009 points.

Meanwhile, the balance of the Fed starts to grow again, slowly, the reasons for the purchase of MBS and Treasury debt in the total amount of this stuff on the Fed's balance sheet grew by $ 30 billion per week (of which $ 17.3 billion spent to buy MBS). For two weeks the Fed bought MBS for immodest $ 81.3 billion is interesting that once again started to grow the cache on the balance sheets of banks, which crossed again for a trillion, grew up as bank reserves at the Fed. Against the background of active MBS purchase by the Fed are growing their own (nezaemnye reserves), which reached new highs and now make up the $ 543 billion increase in reserves nezaemnyh formed due to the fact that the Fed has moved from lending on the security market to repurchase securities, respectively, assuming all risks. At what prices they are buying these securities continues to be a secret.

All of this suggests that banks continueto sit with a large amount of cash, while maintaining extremely high level of reserves. Free liquidity is enormous, and no one to lend (to those who would like to take a loan do not allow strict conditions and rising unemployment, but most just do not want to go into new loans). In spite of this the Fed continues to pump up the system even more liquidity. It is clear that this liquidity is not only in banks (Fannie, Freddie, Ginnie), but judging by the synchronicity of growth nezaemnyh reserves of commercial banks, it just comes to them, where and stored.

Oil

The price of oil on Monday, August 31 fell below $ 70 a barrel on the background of another collapse of the Chinese stock market.

At the end of trading on the New York Mercantile Exchange front-month October futures for light, sweet crude fell 2.78 dollars, or 3.8 percent, to 69.96 dollars per barrel. Quotations of futures for Brent crude on the ICE fell 3.14 dollars, or 4.3 percent, to 69.65 dollars per barrel.

Asia

Stock Exchanges Asia are now showing growth of the main indices due to the positive statements of the Chinese companies and a record 16 months of growth index of purchasing managers of industrial enterprises in China. Also, the optimism of players affected the yen, which is slightly weaker against the U.S. dollar.

Against this backdrop, the Japanese Nikkei grows by 0,3%, the index of wide market Topix - on 0,2%. Korean Kospi rising by 0,7%. Chinese CSI 300 INDEX growing by more than 0,5%.

Today

External background before opening the bidding in Russia - a moderately positive.

• U.S. indices closed in the small minus;

• Quotations consolidated WTI crude is above $ 70;

• Futures on U.S. indexes are traded in the slight increase;

• Asian sites demonstrate positive dynamics.

Based on the above factors, we expect the opening of trading small gepom up. Perhaps now, the bulls continue to storm the 1,130 points mark for the MICEX index, and if this level of resistance will be taken, then we will have good speed on the background of a massive closure of short positions.

But while the market continues to lateral movement in a broad corridor of 1020-1130 points on the MICEX index and reasons for withdrawal from this corridor is not yet clear.

Following Monday the value of the MICEX Index reached 1091.98 points, which is 1.74% below the previous day's close
Start trading on domestic exchanges will be held near yesterday's closing levels
Makrostatistika starting at today in the euro area, UK and USA, is able to influence the bidding, especially if investors in September with the advent of truly activated
Today is expected to block a macroeconomic statistics from the West, which will determine the outcome of trading on domestic platforms
Level of support for the MICEX Index is an uptrend in the region of 1061 points, and resistance - trends in the region of 1096-1097 and 1114 points
External background before the opening of Russia's market is moderately positive: America is closed reduction, Asia traded with increased
Yesterday the U.S. stock market dominated by pessimism among market participants
Latin America: and again the weather in the region makes China
Secretariat of the President: state debt of Ukraine on July 31, 2009 reached 185 billion UAH