Last closure
On Friday, March 14, trades in USA have come to the end with decrease, as investors sought haven assets after talks failed to resolve the Ukraine standoff before Sunday’s Crimea referendum. U.S. Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov failed to defuse the standoff over Ukraine in six hours of talks in London, as the Crimea peninsula prepared to vote on joining Russia. The U.S. and the European Union are threatening sanctions against Russia if it doesn’t back down from annexing Crimea. Ukraine’s Kiev-based cabinet says Russia has taken over the southern region and is massing troops on its border. The preliminary reading of the March consumer sentiment index was far below expectations, reported at 79.9 - the lowest since November 2013 - compared to 81.6 in February and 81.2 in January. The index was at 82.5 in December and 75.1 in November. The Producer Price Index for final demand fell 0.1% in February, seasonally adjusted. This decline followed advances of 0.2% in January and 0.1% in December. On an unadjusted basis, the index for final demand moved up 0.9% for the 12 months ended in February, the smallest 12-month rise since a 0.9-% increase in May 2013. On the day’s result, index Dow Jones has declined by 0.27%, S&P has lowered by 0.28%, Nasdaq has decreased by 0.35%.
European stock exchanges closed with mixed dynamics of main indexes, as investors awaited a referendum that may lead to Crimea’s secession from Ukraine. The Stoxx Europe 600 Index retreated 0.7% to 322.23 at the close of trading, for a third day of declines. The benchmark gauge has fallen 3.3% this week as Russia and Ukraine continued their standoff over Crimea, and China reported worse-than-expected economic data. Eurostat reported that employment change rose to 0.1% in the fourth-quarter, compared to a flat reading registered in the preceding quarter. Report from Germany, confirmed that consumer price index in the nation rose 1.2% in February, in-line with market estimates and following a 1.3% increase recorded in the previous month. On the day’s result, British FTSE has declined by 0.40%, CAC 40 (France) has decreased by 0.80%, DAX (Germany) has increased by 0.43%.
Aprils’ contractual price on Brent oil, grew by $1.18 to $108.57 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened by decrease, day passed without certain dynamics. Value of the UX index has increased by 0.18% to 1003.58. Share trades capacity on the application market was equal to UAH 24.9 million. Trades capacity on the derivatives market was equal to UAH 8.6 million. Total trades capacity for yesterday — UAH 49.7million.
From ten shares of an index basket, four have grown in price. Leaders of growth were shares of Raiffeisen Bank Aval (+3.27%). Worse than market looked shares of Enakievo Metallurgical Plant (-1.80%) and Alchevsk Metallurgical Plant (-1.59%). Ukraine continues repaying the debt for Russian gas, said Ukraine's Energy and Coal Industry Minister Yuriy Prodan. We have repaid about $90 million for February, and we have yet to repay $350 million. Ukraine's debt for 2013 totals $1.5 billion, he told reporters in Kyiv on Sunday.
Premarket
External background at the opening is neutral.
95.7% of Crimean residents who cast their votes at 75% of polling stations decided to join Russia, Crimean referendum commission head Mikhail Malyshev reported. In his words, 3.2% of voters were opposed to Crimea's accession and 1.1% of ballots were pronounced invalid.
The Asian indexes are decreasing today. Nikkei has lowered by 0.35%, Hong Kong Hang Seng declining by 0.20%.
Futures on American indexes are growing today from 0.21% to 0.22%.
Russian indexes as of 10:00 a.m. are raising— RTS increasing by 1.10%, MICEX growing by 1.12%.
Our expectations
We expect opening of the Ukrainian market on neutral territory. The Ukraine, Europe and the US have all condemned the referendum as illegal and will refuse to recognize its outcome. Russia is the only county that intends to give validity to the referendum result. Reactions to Crimean referendum will dramatically impact markets.
In Europe will be published consumer price index in the E.U. (12:00 a.m.).
In the U.S. will be published empire state manufacturing index (02:30 p.m.) and data on industrial production (03:30 p.m.).
ITT Investment group
Приложения к материалу:
