Last closure
On Monday, April 15, trades in USA have come to the end with growth, as earnings from Coca-Cola Co. and Johnson & Johnson overwhelmed concerns that tensions in Ukraine are worsening. Coca-Cola gained 3.7% as global volume sales increased. Johnson & Johnson climbed 2.1% as the company raised its forecast for the year. Economic data showed manufacturing in the New York region grew at a slower pace in April while the cost of living in the U.S. rose more than projected in March as food and rents became more expensive. Confidence among U.S. homebuilders rose less than forecast in April, as sales and prospective buyer traffic stagnated, showing the residential real estate market struggled to improve after a harsh winter. An S&P index of homebuilders fell 0.6%. Ukraine unleashed an offensive to dislodge militants from towns in its eastern Donetsk region as the authorities in Kiev said elements of Russian special forces were identified among the anti-government forces. Russia’s prime minister said the country risks civil war. On the day’s result, index Dow Jones rose by 0.55%, S&P has increased by 0.68%, Nasdaq grew by 0.29%.
European stock exchanges closed with decrease of main indexes, erasing their gains for the year, after a report that Russian troops entered towns in eastern Ukraine, and as German confidence data missed economists’ forecasts. Envoys from Ukraine, Russia, the U.S. and European Union are scheduled to hold talks in Geneva on April 17 in an attempt to resolve the crisis. In Germany, a gauge of investor confidence fell for a fourth month in April. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, slid to 43.2 from 46.6 in March. Economists had forecast a decline to 45. On the day’s result, British FTSE has declined by 0.64%, CAC 40 (France) has decreased by 0.89%, DAX (Germany) has lowered by 1.77%.
Mays’ contractual price on Brent oil, decreased by $0.33 to $108.74 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened on neutral territory, day passed without certain dynamics. Value of the UX index has declined by 0.48/% to 1114.12. Share trades capacity on the application market was equal to UAH 13.8 million. Trades capacity on the derivatives market was equal to UAH 10.3 million. Total trades capacity for yesterday — UAH 38 million.
From ten shares of an index basket, three have risen. Leaders of growth were shares of Avdiivka Cokery Plant (+2.93%) and Donbasenergo (+1.17%). Worse than market looked shares of Ukrnafta (-6.47%) and Azovstal Iron and Steel Works (-2.75%). The Finance Ministry plans the issue of Eurobonds at USD 1 billion under the U.S. guarantees within the frames of an agreement on receiving U.S. financial aid to support economic reforms in Ukraine. The National Bank of Ukraine has temporarily cut off 14 banks from the interbank forex market for destabilisation of the hryvnia exchange rate, reads a statement made by the NBU press service. Although, the document does not list the financial institutions disconnected from the interbank market.
Premarket
External background at the opening is neutral. Ukraine's acting President Oleksandr Turchynov says government forces have captured the airport in the eastern town of Kramatorsk from a pro-Russian group. Turchynov told parliament the goal of the security operation in Kramatorsk, and another operation in Slovyansk, was to protect citizens from terrorists who are trying to tear this country apart. There was shooting during the April 15 siege of the airport, and an unclear number of casualties has been reported. Russian media has reported that between four and 15 people may have been killed. China's Q1 GDP beat expectations rising 7.4% year-over-year. Economists were looking for Q1 GDP to rise 7.3%. But this was down from 7.7% the previous quarter, showing that China's economy continues to slow. Industrial production was up 8.8% in March, below expectations for a 9% rise.
The Asian indexes are growing today. Nikkei rose by 3.01%, Hong Kong Hang Seng increasing by 0.35%.
Futures on American indexes are growing today from 0.40% to 0.45%.
Russian indexes as of 10:00 a.m. are showing mixed dynamics — RTS increasing by 0.12%, MICEX lowers by 0.01%.
Our expectations
We expect opening of the Ukrainian market on neutral territory.
In Europe will be published Claimant Count Change in the U.K. (11:30 a.m.) and consumer price index in the E.U. (12:00 a.m.).
In the U.S. will be published building permits (3:30 p.m.), housing starts (3:30 p.m.), industrial production (4:15 p.m.) and Federal Reserve's Beige Book (9:00 p.m.).
Federal Reserve Chair Janet Yellen speech to Economic Club of New York will start at 7:15 p.m.
ITT Investment group
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