Last closure
On Monday, May 12, trades in USA have come to the end with growth, after Internet and small-cap shares rallied amid deals activity that boosted confidence in the US economy. About 76% of the 453 S&P 500 companies that have released results this earnings season have beaten estimates for profit, while 53% have exceeded revenue projections. Profit at the companies will probably rise 7.2% this year, as sales will climb 4%, according to analysts’ estimates. Twitter Inc. added 5.9% after falling 18% last week, the most since its initial public offering in November. Facebook Inc. rose 4.5% following a 5.3% drop last week. Yahoo! Inc. gained 2% after slumping 8.4% last week, the most since September 2011. On the day’s result, index Dow Jones rose by 0.68%, S&P has increased by 0.97%, Nasdaq grew by 1.77%.
European stock exchanges closed with growth of main indexes, as mining companies advanced. JPMorgan upgraded its rating on European mining companies to overweight from underweight, with strategists led by Mislav Matejka citing cuts to spending and costs, as well as improving demand from China. JPMorgan also named Rio Tinto Group and BHP Billiton Ltd as the most attractive stocks in the industry. A gauge of European mining shares jumped 2.7% and prices for copper and base metals rose. BHP Billiton climbed 2.7% to 1,948 pence, Rio Tinto advanced 4.8% to 3,340 pence and Anglo American Plc rose 2.3% to 1,641.5 pence. A gauge of European mining shares jumped 2.7% and prices for copper and base metals rose. BHP Billiton climbed 2.7% to 1,948 pence, Rio Tinto advanced 4.8% to 3,340 pence and Anglo American Plc rose 2.3% to 1,641.5 pence. On the day’s result, British FTSE rose by 0.72%, CAC 40 (France) grew by 0.55%, DAX (Germany) has increased by 0.37%.
Junes’ contractual price on Brent oil, grew by $0.52 to $108.41 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened by decrease, day passed without certain dynamics. Value of the UX index has declined by 1.27% to 1087.90. Share trades capacity on the application market was equal to UAH 5.4 million. Trades capacity on the derivatives market was equal to UAH 3.8 million. Total trades capacity for yesterday — UAH 25 million.
All ten shares of an index basket retreated. Worse than market looked shares of Raiffeisen Bank Aval (-2.54%).
Russia indicated it “respects” the results of two disputed referendums in eastern Ukraine, which separatists said backed independence, while the European Union added companies to its list of sanctions for the first time. Managing Director of the International Monetary Fund Christine Lagarde said that the IMF assistance program for Ukraine, valued by the Fund at $17 billion, will be insufficient and should be increased.
Premarket
External background at the opening is positive. Russian Prime Minister Dmitry Medvedev instructed Gazprom to start supplying gas to Ukraine on a prepaid basis from May 13. Ukraine had to pay for Russian gas supplies before June 2. Growth in Chinese factory output probably unexpectedly slowed to 8.7% in April, missing the forecast for an 8.9% expansion from economists surveyed by Bloomberg. It dropped to 8.8% in March in a third slowing month.
The Asian indexes are growing today. Nikkei rose by 1.95%, Hong Kong Hang Seng increasing by 0.36%.
Futures on American indexes are growing today from 0.10% to 0.15%.
Russian indexes as of 10:00 a.m. are rising — RTS increasing by 1.40%, MICEX growing by 0.74%.
Our expectations
We expect opening of the Ukrainian market on neutral territory.
In Europe will be published ZEW Economic Sentiment in Germany and in the E.U. (12:00 a.m.).
In the U.S. will be published retail sales (3:30 p.m.), import price index (3:30 p.m.) and data on business inventories (5:00 p.m.).
ITT Investment group
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