Last closure
On Tuesday, March 18, trades in USA have come to the end with growth, as housing data bolstered confidence in the economy with the Federal Reserve meeting on policy. Treasuries advanced and the yen strengthened amid ongoing turmoil over the Crimea. U.S. and European leaders condemned Russia’s push to annex Crimea from Ukraine and promised further sanctions as soon as this week. Russian President Vladimir Putin said his country didn’t intend to further divide Ukraine. The Fed will press on with cuts to stimulus and switch to qualitative guidance for assessing interest rates, according to economists surveyed before the central bank’s two-day meeting. U.S. housing starts held steady in February while building permits climbed. Housing starts in the U.S. were little changed in February after declining less than previously estimated a month earlier, data showed today, indicating the home-building industry is stabilizing after bad winter weather curbed construction. Permits filed for future building projects increased 7.7% to a pace of 1.02 million in February, the most since October amid demand for apartment buildings. Fed officials have said they will probably hold the bank’s target interest rate near zero “well past the time” that unemployment falls below 6.5%, “especially if projected inflation” remains below its longer-run goal of 2%. Another report showed the cost of living in the U.S. was little changed in February, showing inflation is making scant progress toward the Fed’s goal with policy makers to release a statement on monetary policy at the end of their meeting tomorrow. On the day’s result, index Dow Jones rose by 0.55%, S&P has increased by 0.72%, Nasdaq grew by 1.25%.
European stock exchanges closed with growth of main indexes, extending their biggest gain in two weeks, after Russian President Vladimir Putin said he isn’t seeking to split up Ukraine. ZEW Centre for Economic Research said that its index of German economic sentiment tumbled by 9.1 points to 46.6 this month from February’s reading of 55.7. Analysts had expected the index to fall by 2.7 points to 53.0 in March. The Current Conditions Index improved to 51.3 this month from 50.0 in February, missing expectations for an increase to 52.0. Meanwhile, the index of euro zone economic sentiment dropped to 61.5 in March from 68.5 in February, worse than expectations for a decline to 67.3. On the day’s result, British FTSE rose by 0.56%, CAC 40 (France) grew by 0.97%, DAX (Germany) has increased by 0.67%.
Aprils’ contractual price on Brent oil, grew by $0.55 to $106.79 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened by growth, day passed with positive dynamics. Value of the UX index has increased by 2.42% to 1018.34. Share trades capacity on the application market was equal to UAH 14.4 million. Trades capacity on the derivatives market was equal to UAH 5 million. Total trades capacity for yesterday — UAH 32.7 million.
All ten shares of an index basket have grown in price. Leaders of growth were shares of Alchevsk Metallurgical Plant (+4.72%) and Motor Sich (+4.52%). Russian President Vladimir Putin signed a treaty to annex the breakaway Ukrainian region of Crimea, defying Western sanctions against senior officials. The International Finance Corporation announced an increase in the financing of investment projects in Ukraine. IFC plans to extend a long-term project as part of the World Bank program of USD 3 billion for funding in 2014 about USD 400 million for the development of the banking sector, agribusiness and infrastructure, energy efficiency, support for small and medium businesses.
Premarket
External background at the opening is neutral. Japan registered a goods trade deficit of 800.3 billion yen in February, a record for the month and up 3.5% from a year before.
The Asian indexes are showing mixed dynamics today. Nikkei rose by 0.36%, Hong Kong Hang Seng declining by 0.02%.
Futures on American indexes are slightly growing today from 0.04% to 0.11%.
Russian indexes as of 10:01 a.m. are showing mixed dynamics — RTS increasing by 0.27%, MICEX lowers by 0.21%.
Our expectations
We expect opening of the Ukrainian market on neutral territory.
In Europe will be published claimant count change and MPC meeting minutes in the U.K. (11:30 a.m.).
In the U.S. will be published current account index (02:30 p.m.) and interest rate decision (08:00 p.m.).
The Federal Open Market Committee announcement will start at 08:00 p.m.
ITT Investment group
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