Last closure
On Wednesday, July 16, trades in USA have come to the end with growth, as companies from Time Warner Inc. to Intel Corp. rallied amid deals and earnings reports. Time Warner surged 17% as Rupert Murdoch’s 21st Century Fox Inc. made a takeover bid that was rebuffed. Intel jumped 9.3% as its third-quarter sales forecast fueled optimism the personal-computer market is emerging from a two-year slump. International Business Machines Corp. rose 2.1% after agreeing with Apple Inc. to develop applications for corporate users of wireless devices. Federal Reserve Chair Janet Yellen went through round two in speaking on the Fed’s Monetary Policy Report in her semi-annual monetary policy hearing to the House Financial Services Committee. The results, however, proved to be much of the same as her hearing before the Senate Banking Committee on Tuesday. “If the committee continues to see improvement in the labor market and continues to forecast ongoing progress in the labor market, it is our intention to conclude after the October meeting. Beyond that we would maintain 0 to 1/4 for the federal funds rates,” Yellen said during the hearing. Dallas Fed President Richard Fisher said ending asset purchases this fall isn't enough – the Fed should should start to taper the reinvestment of maturing securities in October. Monetary policy is a bit like duck hunting. If you want to bag a mallard, you don't aim where the bird is at present, you aim ahead of its flight pattern. To me, the flight pattern of the economy is clearly toward increasing employment and inflation that will sooner than expected pierce through the tolerance level of 2%. On the day’s result, index Dow Jones rose by 0.45%, S&P has increased by 0.42%, Nasdaq grew by 0.22%.
European stock exchanges closed with growth of main indexes, as Portuguese banks led a rally by euro-zone lenders and a report showed China’s economy expanded at a better-than-expected pace. In China, a report showed that economic growth increased for the first time in three quarters. Gross domestic product rose 7.5% in the April-June period from a year earlier. The eurozone was estimated to have scored a trade surplus of 15.4 billion euros (20.8 billion U.S. dollars) in May. It was up from a surplus of 14.6 billion euros in the same period last year. Compared with April, the eurozone's seasonally-adjusted exports rose by 0.6% and imports by 0.5% in May. On the day’s result, British FTSE rose by 1.11%, CAC 40 (France) grew by 1.48%, DAX (Germany) has increased by 1.44%.
Augusts’ contractual price on Brent oil, decreased by $0.17 to $105.85 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened by decrease, day passed with negative dynamics. Value of the UX index has declined by 0.95% to 1242.50. Share trades capacity on the application market was equal to UAH 7.5 million. Trades capacity on the derivatives market was equal to UAH 5.6 million. Total trades capacity for yesterday — UAH 35.6 million.
From ten shares of an index basket, eight declined. Leaders of growth were shares of Ukrsotsbank (+1.08%). Worse than market looked shares of Centerenergo (-1.98%). The National Bank of Ukraine (NBU) increased its discount rates from July 17 by 3%, to 12.5%.
Premarket
External background at the opening is mixed. The Obama administration escalated its sanctions Wednesday against Russia over the fighting in Ukraine, marking a return to confrontation with President Vladimir Putin after determining that his hints at cooperation were leading nowhere. The U.S. moves to impose restrictions on the Russian state-controlled oil giant OAO Rosneft and other top firms are aimed at squeezing Russia's already struggling economy and financial system. The sanctions stop well short of crimping international business ties or blocking deals with entire sectors of the Russian economy. European Union leaders intend to expand sanctions against Russia.
The Asian indexes are decreasing today. Nikkei has lowered by 0.06%, Hong Kong Hang Seng declining by 0.19%.
Futures on American indexes are decreasing today from 0.12% to 0.26%.
Russian indexes as of 10:00 a.m. are decreasing — RTS decreasing by 3.06%, MICEX lowers by 1.71%.
Our expectations
We expect opening of the Ukrainian market by decrease.
In Europe will be published Consumer Price Index in the E.U. (11:30 AM).
In the U.S. will be published Building Permits (3:30 PM), Housing Starts (3:30 PM), Initial Jobless Claims (3:30 PM) and The Philadelphia Federal Reserve Manufacturing Index (5:00 PM).
Federal Reserve Bank of St. Louis President James Bullard speaks on the U.S. economy and monetary policy at 8:35 PM.
ITT Investment group
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