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Analytics and Market news

Thursday, 23 February 2012

Business activity in Europe is slowing down

Astrum Capital

In spite of an increase in world stock indexes, albeit a slight one, at the beginning of Wednesday, the end of the day passed with sellers at an obvious advantage. As a result, there were virtually no movements in the U.S. stock market once again, while futures on the S&P 500 Index held above the 1,350-point mark for the past four trading sessions in a row.

Among the factors that could really have impacted on market players’ decisions, we note the publication of preliminary values of the PMI business optimism index for Europe, which were mostly worse than expected. On the other hand, the low level of trading activity suggests that investor sentiment has not undergone any major changes.

Thus, before the opening of trading on Ukrainian sites, we are once again encountering the very same situation. There were no events capable of causing a change in investment portfolio management tactics, and futures on the S&P 500 held above the support/resistance level, albeit not very strongly. This effectively means that active traders should also not change their position.



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