Last closure
On Thursday, October 23, trades in USA have come to the end with mixed dynamics, as investors assessed earnings from companies including Norfolk Southern Corp., Coach Inc., International Business Machines Corp. Norfolk Southern, the second-largest U.S. eastern railroad, climbed 4.8% after posting a fourth-quarter profit that exceeded analysts’ estimates. BlackBerry Ltd. rose 8.6% as the smartphone maker said it plans to sell most of its Canadian real estate to raise cash for its turnaround plan. Coach, the largest U.S. luxury handbag maker, slumped 6% after sales missed analysts’ estimates. IBM slid 3.3% as revenue declined for a seventh consecutive quarter amid weaker demand for servers. The Johnson Redbook Retail Sales Index was up 3.1% in the second week of January following a 2.9% gain the prior week. On the day’s result, index Dow Jones has declined by 0.25%, S&P has increased by 0.06%, Nasdaq grew by 0.41%.
European stocks were little changed, as a rally in ASML Holding NV offset a decline in ABB Ltd. ASML jumped the most in a year after saying it plans to increase its 2013 dividend. Rautaruukki Oyj soared 33% after SSAB AB offered to buy the Finnish steelmaker. UK unemployment rate plunged to 7.1%, its best reading in nearly 5 years, propelling pound to fresh weekly highs above 1.6550 in morning London dealing today. The UK labor statistics were much better than the anticipated rate of 7.3%. The decline in the unemployment rate now puts it within a whisker of the BoE threshold of 7.0%, although the UK central bank was very quick to note that there is no immediate need to raise short term rates even if the threshold is breached. On the day’s result, British FTSE has declined by 0.12%, CAC 40 (France) grew by 0.03%, DAX (Germany) has lowered by 0.1%.
Decembers’ contractual price on Brent oil, grew by $1.54 to $108.27 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened by decrease, day passed negative dynamics. Value of the UX index has declined by 2.6% to 863.82. Share trades capacity on the application market was equal to UAH 16.6 million. Trades capacity on the derivatives market was equal to UAH 5.8 million. Total trades capacity for yesterday — UAH 38.6 million.
All ten shares of an index basket have declined in price. Worse than market looked shares of Avdiivka Cokery Plant (-4.9%) and Ukrsotsbank (-3.96%). Ukraine plans to issue $2 billion in eurobonds in the framework of cooperation with Russia by the end of January. These will be two-year bonds at 5% per annum.
Premarket
External background at the opening is negative. China’s manufacturing may contract for the first time in six months, adding to stresses in the world’s second-biggest economy, according to a gauge released by HSBC Holdings Plc and Markit Economics. The preliminary reading of 49.6 for January in a Purchasing Managers’ Index released today was below a final figure of 50.5 in December and all estimates. A number above 50 indicates expansion. Ukrainian opposition leaders issued President Viktor Yanukovich with an ultimatum on Wednesday, threatening to launch an offensive if he does not dismiss the government, call early elections, and repeal legislation limiting acts of protest.
The Asian indexes are decreasing today. Nikkei has lowered by 0.79%, Hong Kong Hang Seng declining by 1.37%.
Futures on American indexes are decreasing today from 0.25% to 0.35%.
Russian indexes as of 9:45 a.m. are decreasing— RTS decreasing by 0.22%, MICEX lowers by 0.25%.
Our expectations
We expect opening of the Ukrainian market by decrease.
In Europe will be published Manufacturing Purchasing Manager's Index in France (09:58 a.m.), Germany (10:30 a.m.) and in the E.U. (11:00 a.m.).
In the U.S. will be published initial jobless claims (03:30 p.m.) and data on existing home sales (05:00 p.m.).
ITT Investment group
