Last closure
On Thursday, July 3, trades in USA have come to the end with growth. U.S. employers accelerated their hiring last month, adding a robust 288,000 jobs and helping drive the unemployment rate to 6.1%, the lowest since September 2008. It was the fifth straight monthly job gain above 200,000 – the best such stretch since the late 1990s tech boom. Over the past 12 months, the economy has added nearly 2.5 million jobs – 208,000 a month, the fastest year-over-year pace since May 2006. Service sector activity in the U.S. grew at a slower rate than expected in June, dampening optimism over the economic outlook, industry data showed on Thursday. In a report, the Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 56.0 last month from a reading of 56.3 in May. Analysts had expected the index to hold steady at 56.3 in June. The New Orders Index registered 61.2, 0.7 points higher than the reading of 60.5 in May, while the Employment Index increased 2.0 points to 54.4 from the May reading of 52.4, indicating growth for the fourth consecutive month and at a faster rate. On the day’s result, index Dow Jones rose by 0.54%, S&P has increased by 0.55%, Nasdaq grew by 0.63%.
European stock exchanges closed with growth of main indexes. European Central Bank president Mario Draghi has said eurozone interest rates will stay at 0.15% for an extended period of time. Mr. Draghi was speaking after the ECB left rates on hold, a month after it cut them to help economic growth. In June the bank cut its deposit rate from zero to -0.10% and its benchmark rate from 0.25% to 0.15%. Mr. Draghi added rate decisions would be taken every six weeks from January 2015 instead of monthly. The euro area saw mixed messages from the service sector in June. The seasonally adjusted France Services Business Activity Index posted at 48.2 in June, down from 49.1 in May. Germany's services Business Activity Index fell to 54.6 from May's near three-year high of 56.0, extending the spell of continuous expansion to 13 months. On the day’s result, British FTSE rose by 0.72%, CAC 40 (France) grew by 1.02%, DAX (Germany) has increased by 1.19%.
Augusts’ contractual price on Brent oil, decreased by $0.24 to $111.19 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 0.71% to 1212.00. Share trades capacity on the application market was equal to UAH 5.2 million. Trades capacity on the derivatives market was equal to UAH 3.3 million. Total trades capacity for yesterday — UAH 55.2 million.
From ten shares of an index basket, nine have retreated. Better than market looked shares of Donbasenergo (+0.1%). Worse than market looked shares of Enakievo Metallurgical Plant (-1.98%).
Ukrainian inflation in 2014 could speed up to 17-19% due to the hryvnia devaluation and the rise in regulated tariffs, said Valeriya Gontareva, the head of the National Bank of Ukraine. Also the National Bank of Ukraine has estimated the fall of Ukraine's gross domestic product (GDP) in 2014 at 4.6%.
Premarket
External background at the opening is neutral. German factory orders fell more than economists expected in May. Orders, adjusted for seasonal swings and inflation, fell 1.7% from April, when they rose a revised 3.4%.
The Asian indexes are growing today. Nikkei rose by 0.58%, Hong Kong Hang Seng increasing by 0.12%.
Futures on American indexes are slightly changing today from -0.07% to +0.01%.
Russian indexes as of 10:00 a.m. are decreasing — RTS decreasing by 0.24%, MICEX lowers by 0.16%.
Our expectations
We expect opening of the Ukrainian market on neutral territory.
In Europe will be published Retail PMI in the E.U. (11:10 AM).
All U.S. markets and banks are closed today for the Independence Day holiday
ITT Investment group
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