>

The domestic market is likely, ignore the negative dynamics of trades in Asia

Oct 5th, 2009 | By admin | Category: News and Comments

Correction in global stock markets continues. Out of a weak report on U.S. labor market on Friday, as well as statements by Noel Roubini, the professor, predicted the crisis, the possibility of another collapse in equity markets, have become a pretext to maintain sales in the world stock exchanges. However, the reduction is no longer wears that avalanche character late last week and the markets are gradually returning purchases. After the collapse of 3% on the MICEX and RTS on 3,5%, the domestic indices today, apparently, must play at least some of the losses late last week and reach the levels of 1200 by subsection MICEX - the more that oil quotations stabilized in the comfortable for Russia's market range of $ 68-69 per barrel.

Trading on the American market once again ended lower. Surprisingly weak report on the labor market in the U.S., contrasts with the expectations and forecasts of economists, has led to sales in the early trading session, but during the day the market began to return purchases, limiting the losses of U.S. indexes. Dow lost 0.23% and fell to 9,487.67 forth, SP - 0,45% and fell to 1,025.21 p.

The September report from the Labor Department showed U.S. job cuts in the U.S. economy in September to 263 thousand in the projections declining to 175 thousand worst way things work in the construction sector, industry, retail and public sector. As a result, unemployment in the U.S. jumped to a record level from 1983 to 9,8%. It should be noted that after several months of positive trends in the labor market in which the pace of job cuts declined, they again began to increase, reflecting the inability of the economy at the moment themselves out of the crisis.

A separate report showed that the advanced state of the indexer industry - Orders for manufactured goods - also pointed to the slippage in the economy: the volume of orders decreased by $ 2.8 billion or 0.8% in August.

markets offer some hope for the statements of official representatives of the U.S. monetary authorities: the U.S. Treasury Secretary Timothy Geithner has once again made it clear that the U.S. authorities refuse to support programs of the economy only if there is new evidence of sustained recovery. Thus, for at least another six months, the Fed and U.S. Treasury will conduct a soft monetary policy in an effort to start investing in the real economy and stimulate consumer demand, which should, after a slowdown at the end of the third - early in the fourth quarter should be reflected in the growth of the economy and stock market indices at the end of this - the beginning of next year. This in particular said Rubin, who said that out of the crisis will not be V-shaped, but rather a U - shaped.

At the auctions in Asia today is dominated by the sale, from which mainly affected by mining stocks and technology companies. U.S. data on the labor market questioned the prospects for recovery of demand in the United States that an attack on quotations of major regional exporters. MSCI Asia Pacific Index decreased by 0.8%, while the Korean KOSPI, tied to the demand for metallurgical and industrial products, losing 1.9%.

domestic market, likely to ignore the negative dynamic trading in Asia, especially when you consider that oil prices have stabilized in the range of $ 68-69 per barrel, and after Friday's landslide in it have already appeared purchase.

Apparently, the game will be based on the ideas in the shares of individual companies: buying may emerge in the networks, after profit-taking on Friday, but according to our assessment during the last rally in the sector capacity for the majority of shares of IDC exhausted. We believe that growth prospects are preserved in IDC Holding and Lenenergo, to a lesser extent - Urals and North Caucasus IDC.

Positive in respect of shares of coal companies in its final days - the paper increased by 40-50%, thus having played almost entirely placed within them the positive from the expected increase in coal prices by 60%. Also, the fixation may continue in metallurgy - mainly due to external negative. Best position in the sector in our assessment of today is CMI.

This week, investors may draw attention to data on industrial production index (PMI) from Europe, to be released on Monday, the outcome of meetings of the European Central Bank on Thursday, at the same time, it is possible that the ECB will try to play his rhetoric in favor of dollar weakness which is depriving Europeans of competitive advantage. As can be seen, very sparse news background, can give players an opportunity to push the indices for another 2-3%, especially given the likelihood of strengthening the U.S. currency. But at the end of the week, in anticipation of the start of reporting season, demand has to return in the stock markets.

log in and see the material;;

2; user rated material on 3,5.


Analyst Ratings


While the MICEX index above the 1,140 points, he has a chance to return to the mark of 1210 and even create a new annual maximum around 1380-1400 points
Today starts the World Gas Congress, which may sound interesting enough for this segment of the market news
The dynamics of today's trading to determine the degree of international speculative capital funds to invest in Russia in September
Shares of most Russian issuers may now be supported not closed gepom formed at the opening on Friday
Stable oil prices and Russia's ruble rate will deter Russia's stock indices by significant subsidence
Following Friday the value of the MICEX Index reached 1175.83 points, which is 2.94% below the previous day's close
Today, the futures market may open with a gap up to 0.5%
Net profit of the Group Cherkizovo in 1 half of 2009 by US GAAP increased by 39% to $ 50.3 million
Asian exchanges this morning show mixed dynamics

Leave Comment

You must be logged in to post a comment.