Last closure
On Monday, March 31, trades in USA have come to the end with growth, s Federal Reserve Chair Janet Yellen said the economy will need further support. Yellen said “considerable slack” in the labor market is evidence that the central bank’s unprecedented accommodation will still be needed for “some time” to put Americans back to work. The Institute for Supply Management-Chicago Inc. said its business barometer decreased to 55.9 in March from 59.8 the prior month. Separate reports this week may show that manufacturing expanded further this month, while factory orders probably rebounded in February. Russia and the U.S. agree on the need for a diplomatic solution to tensions over Ukraine, Russian Foreign Minister Sergei Lavrov said. On the day’s result, index Dow Jones rose by 0.82%, S&P has increased by 0.79%, Nasdaq grew by 1.04%.
European stock exchanges closed with decrease of main indexes, as investors’ awaited economic data out of Europe and America later this week. German retail sales unexpectedly rose 1.3% in real terms on the month, beating even the highest forecast for a gain of 0.8%. The consensus forecast was for a 0.5% fall. Economy growth of France accelerated to 0.3% in the last quarter of 2013 after being flat in third quarter. Meanwhile in Europe, the euro zone's consumer price index slowed to 0.5% this month from 0.7% in February, undershooting expectations for a reading of 0.6%. The European Central Bank targets an inflation rate of just under 2%, and March's figure was the lowest since November of 2009. On the day’s result, British FTSE has declined by 0.26%, CAC 40 (France) has decreased by 0.45%, DAX (Germany) has lowered by 0.33%.
May’s contractual price on Brent oil, decreased by $0.31 to $107.76 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened on neutral territory, day passed with positive dynamics. Value of the UX index has increased by 2.75% to 1019.72. Share trades capacity on the application market was equal to UAH 8.3 million. Trades capacity on the derivatives market was equal to UAH 3.2 million. Total trades capacity for yesterday — UAH 32.5 million.
All ten shares of an index basket have risen. Leaders of growth were shares of Raiffeisen Bank Aval (+8.07%) and Ukrsotsbank (+4.38%). Ukraine's MPs have proposed reducing VAT from 20% to 17% and corporate income tax from 18% to 16% from January 1, 2015. The document, in particular, proposes keeping the current preferential tax for IT companies at 5%. Experts with a World Bank mission have developed a program of action to reform the financial sector of Ukraine, which will be implemented through a World Bank loan. The work was conducted within the framework of the World Bank mission in Ukraine from March 24 to march 28.
Premarket
External background at the opening is moderately positive. China factories struggle, adds to expectations for stimulus. The official purchasing managing index edged up to 50.3 in March from 50.2 in February, pointing to slight expansion. The Markit/HSBC Purchasing Managers' Index, which focuses more on the private sector, fell to an eight-month low of 48.0 in March.
The Asian indexes are showing mixed dynamics today. Nikkei has lowered by 0.24%, Hong Kong Hang Seng increasing by 0.85%.
Futures on American indexes are slightly growing today from 0.01% to 0.09%.
Russian indexes as of 10:00 a.m. are rising — RTS increasing by 0.75%, MICEX growing by 0.40%.
Our expectations
We expect opening of the Ukrainian market by growth.
In Europe will be published Manufacturing PMI in Italy (10:45 a.m.), France (10:50 a.m.), Germany (10:55 a.m.), in the E.U (11:00 a.m.) and in the U.K (11:30 a.m.). Unemployment Rate will be published in Germany (10:55 a.m.) and in the E.U (12:00 a.m.).
In the U.S. will be published the Institute of Supply Management manufacturing Purchasing Managers Index (5:00 p.m.) and construction spending index (5:00 p.m.).
ITT Investment group
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