Observed on the market rise is not supported by fundamentals and is based solely on speculative ideas
Oct 7th, 2009 | By admin | Category: News and Comments global equity markets
According to the head of the Federal Reserve Bank of Kansas Thomas Hoeniga, the central bank should start tightening monetary policy. Even if we were to start immediately, it took a long time, before you step by step increase would create a rigid, or even a neutral policy - he said. - I would not support the strict monetary policy in the current situation, but my experience tells me that We must abolish the catalytic policy sooner rather than later. Thus, T. Hoenig expressed the opposite position before the point of view articulated by the head of the Federal Reserve Bank of New York U. Dudley. Consequently, the issue of changing the U.S. Federal Reserve for basic interest rate in a short time remains open.
The American share indexes were closed on Tuesday in a good plus. Dow Jones Industrial Average rose by 1,37% - to 9731.25 points, the same added Standart Poor's 500 stood at 1054.72 points, Nasdaq Composite rose by 1,71% - to 2103.57 points.
leaders of growth in the second day in a row were securities of companies in financial and commodity sector. Against the backdrop of excitement prevailed yesterday, the U.S. oil company Exxon Mobil Corp. again took first place in the world in terms of market capitalization, overtaking China's PetroChina Co.
investor confidence and gives a successful IPO a few days ago Spanish bank Santader, which managed to attract during the deployment in Brazil and the U.S. 15% stake in its Brazilian unit more than $ 8 billion over the past 18 months it has become the largest U.S. initial public
On Wednesday morning, with global equity markets are growing steadily: futures on major U.S. indices are added about 0.3%, Asian indexes rise by more than 1%.
From today in the U.S. season begins publication of financial statements for the third quarter. Traditionally, it opens the largest U.S. aluminum company Alcoa.
Metal Market
Technical factor in the form of a rapidly declining U.S. dollar immediately reflected in the quotations of base metals, prices of which are calculated in U.S. dollars.
In the past trading session all, without exception, industrial metals traded on the LME, have risen in price. Nickel ($ 18,130) and copper ($ 6115) was added to 3,3% of market value. Changing lead prices (2150 $) and tin ($ 14,595) amounted to 2,8%. Zinc has risen in price on 2,7% - to $ 1,922 per meter. ton, contracts for aluminum rose by 1,8% - to $ 1,822.
On Wednesday morning the prices of basic industrial metals are stable.
notable growth of quotations also demonstrate the futures on precious metals. Thus, over the past 3 days the market value of gold has increased by almost 4% of them yesterday - on 2,2%. On Wednesday, the metal continues upward momentum.
Market Oil
The weakening U.S. dollar relative to other world currencies continues to support the commodity markets. Tuesday, primarily due to this factor hydrocarbons made a small leap upward.
The November Brent crude contracts grew yesterday at 0,76% - to 68.56 dollars per barrel, WTI neftefyuchersy varieties increased in price by 0,67% - to 70.88 dollars per barrel.
On Wednesday morning, black gold continues to rise in price, adding about 0.6%. In addition to technical factors that support the oil market have published during the night the American Petroleum Institute (API) data on changes in stocks of petroleum products: last week in the country, there were reduction of commercial stocks of crude oil by 254 thousand barrels, distillates - to 2,91 million barrels.
official report to the U.S. Department of Energy has traditionally released on Wednesday evening.
Russia Market
The balance of power in the world trading floors foretells the positive momentum in the domestic stock exchanges in the first half of the day. To repeat yesterday's result today is unlikely to succeed, but to enhance its growth for another 1-2% of Russia's bulls fully capable.
The only thing that confuses in witnessing the rise, so is that it is not supported by fundamentals and is based solely on speculative ideas raised at yesterday's sharp fall against the dollar. As a consequence, it can also be completed quickly as it began. Unless, of course, does not find support in the fundamentals, emerging in the coming days.
Today, the focus of investors will be two events - weekly data as the U.S. fuel market and out of the first financial report on the results of the past quarter - from the company Alcoa. It will win back tomorrow, as the publication will take place after the close of U.S. exchanges.
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