Last closure
On Wednesday, March 12, trades in USA have come to the end with mixed dynamics, as investors watched developments in Ukraine and weighed prospects for global economic growth. Newmont Mining Corp. and Barrick Gold Corp. climbed more than 2.6% as gold jumped. EPL Oil & Gas Inc. surged 29% after Energy XXI Ltd. agreed to buy it for $1.5 billion. Russia’s takeover of Crimea, home to its Black Sea Fleet, has sparked the worst crisis with the West since the Cold War as the European Union and the U.S. try to use sanctions to force President Vladimir Putin to retreat. On the day’s result, index Dow Jones has declined by 0.07%, S&P has increased by 0.03%, Nasdaq grew by 0.37%.
European stock exchanges closed with decrease of main indexes, while Russia and Ukraine continued their standoff over Crimea. A Eurostat report showed that industrial production in the 18-nation euro zone dropped 0.2% in January. The average analyst forecast had called for an increase of 0.5%. The agency revised the decline in December to 0.4%. The Russian Foreign Ministry said that U.S. aid to the acting government in Kiev would violate American law because the departure of Viktor Yanukovych as Ukraine’s president last month counts as a coup. Ukraine’s interim Prime Minister, Arseniy Yatsenyuk, meets U.S. President Barack Obama and Secretary of State John Kerry in Washington. On the day’s result, British FTSE has declined by 0.97%, CAC 40 (France) has decreased by 1%, DAX (Germany) has lowered by 1.28%.
Aprils’ contractual price on Brent oil, decreased by $0.53 to $108.02 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened by decrease, day passed with negative dynamics. Value of the UX index has declined by 2.35% to 1030.35. Share trades capacity on the application market was equal to UAH 7 million. Trades capacity on the derivatives market was equal to UAH 4.6 million. Total trades capacity for yesterday — UAH 28.4 million.
From ten shares of an index basket only shears of Azovstal Iron and Steel Works have (+2.42%) grown in price. Worse than market looked shares of Ukrsotsbank (-6.43%) and Donbasenergo (-3.55%).
The National Bank of Ukraine has purchased USD 53 million at the interbank currency market, NBU Governor Stepan Kubiv has said about this. UniCredit Bank Austria in sale talks on Ukraine unit. The Ukrainian business was valued at 0.7 times equity value, he said. Reclassification of the Ukrainian bank as an asset held for sale and its operating loss in 2013 hit profits by around 250 million euros ($347 million), Bank Austria said.
Premarket
External background at the opening is moderately positive. China’s industrial production slowed to 8.6% in the January-Ferbuary period, compared to 9.7% in December, while retail-sales growth also eased to 11.8% from 13.1% in December. US President Barack Obama said that if Russia continues its aggressive stance in Ukraine, the United States and other countries will be forced to apply a cost to Moscow.
The Asian indexes are decreasing today. Nikkei has lowered by 0.1%, Hong Kong Hang Seng declining by 0.52%.
Futures on American indexes are growing today from 0.19% to 0.24%.
Russian indexes as of 10:00 a.m. are rising — RTS increasing by 0.92%, MICEX growing by 0.82%.
Our expectations
We expect opening of the Ukrainian market on neutral territory.
Yatsenyuk addresses the United Nations Security Council in New York today.
In the U.S. will be published core retail sales (02:30 p.m.), initial jobless claims (02:30 p.m.), business inventories (04:00 p.m.), and data on federal budget balance (08:00 p.m.).
ITT Investment group
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