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Russia market still traded near the local maxima from the beginning of the year

Sep 25th, 2009 | By admin | Category: News and Comments

On Friday, the middle of the day Russia's stock index almost entirely played decrease, which took place yesterday during the last trading hour. Positive signals that support the market, very indistinct and more are to stabilize the oil quotations (after reduction) and the American stock indexes have been sustained. Most likely, market participants are trying to acquire assets at lower prices (after correction), and expect further growth in value of assets. Yesterday's macroeconomic statistics has had a negative effect on the dynamics of trades, namely, data on second home sales were worse than expected. This is largely due to concern about the state of the U.S. Federal Reserve the U.S. economy and could serve as an additional justification for maintaining low rates. Continuation of the program incentives will support liquidity in the financial system and, perhaps, accelerate the recovery of world economy, which, in turn, would justify such rapid growth in the financial markets. While the situation does not look so favorably. Commodity prices are gradually declining, in response to reduced demand from China, buying the latter served as a catalyst for growth in the value of commodity assets since the beginning of the year. The cost of the freight tonnage of vessels continues to decline and is at lowest level since early May, which may indirectly indicate a lower turnover of bulk and bulk cargo. On the sharp drop in container traffic index shows HARPEX, whose value is at minimum values in the history of his calculation. Thus, unlike the credit markets, world trade is still in the frozen state, demand only the raw assets that market participants are viewed as tools that can protect against inflation. Despite this sad state, yet there are some positive moments, the chief of which is possible in the very near future will begin a rapid recovery, which will have a fundamental support for stock markets.

Russia market still traded near the local maxima from the beginning of the year. In the current situation it is recommended to hold long positions and strengthen them in case of breakdown, and closing on the new local maxima, to set new highs the market will have in the recovery of petroleum quotations to a level of $ 70 per barrel. The deterioration in global stock markets or a continued decline in oil prices could cause a correctional movement and on the equity market, in this case, we recommend hard cover long positions at the predetermined stop levels.

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