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In the early hours of the session on Russia”s market bidding will take place in the “red zone” in the future expected volatility countervailing dynamics

Mar 6th, 2010 | By admin | Category: News and Comments

Dynamics
auctions on Friday on Russia"s stock markets were volatile in the multidirectional movement of blue chips. With the opening of the action showed gap down on the background of a weak stock market closes in the U.S. and negative dynamics of Asian sites. Nevertheless, substantial sales in Russia are not followed. On the contrary, the whole day trying to keep the market at current levels, despite the external negative. The situation changed dramatically with the release of U.S. statistics. Against the background of very positive figures for GDP and the market pulled up in a few minutes left in the positive plane. Against the background of positive trading began in the United States shares Russian companies have improved their position.

leader of growth on Friday became the paper of "Gazprom" and the banking sector. Growth here was about 1.5% - 2%. The plus shares closed LUKoil, Tatneft, and MTS. Weak market on that day were traded securities of MMC Norilsk Nickel, Rosneft and Surgutneftegaz.

Following the auction, the RTS index rose to 1473.81 points (0.88%), the MICEX index finished trading on the value of 1419.42 points (0.92%).

Causes
reasons for the failure of the morning quotations were weak data on U.S. labor market, published yesterday, which caused the sale of assets in U.S. and Asian sites. The tightening of monetary policy in India and the weak macroeconomic statistics from Japan"s complement negative picture. Within days the market has received the figures from across the ocean. U.S. GDP for the fourth quarter was at 5.7%, against the expected 4.7%. As a result, the market went sharply to the growth of a broad front. Data on the Chicago PMI index and consumer sentiment index from the University of Michigan were also better than forecasts. Reporting of American corporations in this day went better than expected, and all spoke in favor of buying the shares.

What to expect?
U.S. market on Friday closed lower, despite a good start session: Dow Jones -0.52%, S P500 -0.98% and the Nasdaq -1.45%. Asian sites today traded mixed. Japanese Nikkei 225 in positive territory at 0.1%, Korean index grows by 0.3%, the index lost 0.2% of Hong Kong, the Chinese market fell by 1.8%.

Oil futures continued a gradual decline. At the opening of trading in Europe, a barrel of Brent crude oil yield about 71.30 dollars.

Thus, at the opening of Russia"s stock market a negative external background.

Why worry?
Despite the very positive statistics on the state"s economy, the U.S. sites have closed lower. This should alert consumers, said the disappearance of euphoria. Investors are beginning to be more sober assessment of current state and prospects of further development of the world economy. Adds the beginning of a cycle of tension tightening monetary policy in the Asian region. In the future, probably waiting for similar steps by the monetary authorities of America and Europe. The index of business activity in China is lower than the previous value, which indicates a deterioration in business sentiment against the backdrop of slowdown in lending in China. Today is expected to yield similar results for European economies, and closer to the evening will be cited figures index of PCE in the U.S..

In general, expect from today"s trading negative start and volatile multidirectional dynamics in the future.

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