Last closure
On Friday, July 18, trades in USA have come to the end with growth, as sales that topped analyst estimates at Google Inc., the world’s third-largest company, refocused investors on economic growth amid crises in the Middle East and Ukraine. About 77% of the 82 companies in the S&P 500 that have posted results this earnings season beat analysts’ profit projections, and 70% exceeded sales estimates, data compiled by Bloomberg show. Profit by the gauge’s members increased 6.2% in the second quarter, and revenue rose 3.3%, according to analysts’ estimates. According to Thomson Reuters/University of Michigan’s preliminary reading, consumer sentiment dropped to 81.3 in July – its lowest level in four months, compared to the final June reading of 82.5. The results missed expectations. On average, economists forecasted the index to reach 83 this month. The consumer gauge has only posted two monthly gains this year, which occurred in April and June. Last year, consumer sentiment ranged from a low of 73.2 in October to a high of 85.1 in July. On the day’s result, index Dow Jones rose by 0.73%, S&P has increased by 1.03%, Nasdaq grew by 1.57%.
European stock exchanges closed with mixed dynamics of main indexes, as concerns eased over crises in the Ukraine and Middle East. European Union imposed further sanctions on Russia over the conflict. Russia and Ukraine blamed each other for the downing of the jet as moves to investigate the crash got under way. President Barack Obama said the violence in Ukraine is facilitated by Russia’s support for separatists and called for an immediate cease-fire. The eurozone's current account surplus narrowed in May, according to data published on Friday by the European Central Bank. The current account balance, a broad measure of an economy's international financial position, decreased in adjusted terms to a surplus of ˆ19.5 billion ($26.4 billion) in May from ˆ21.6 billion in April. For the 12-month period that ended in May 2014, the cumulated surplus was 2.4 per cent of the eurozone's gross domestic product, higher than the 2 per cent in the 12 months to May 2013. On the day’s result, British FTSE rose by 0.17%, CAC 40 (France) grew by 0.44%, DAX (Germany) has lowered by 0.35%.
Augusts’ contractual price on Brent oil, decreased by $0.65 to $107.24 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 increased by 0.32% to 1228.18. Share trades capacity on the application market was equal to UAH 6.6 million. Trades capacity on the derivatives market was equal to UAH 6.8 million. Total trades capacity for yesterday — UAH 52.4 million.
From ten shares of an index basket, five have risen. Leaders of growth were shares of Ukrsotsbank (+1.88%) and Centerenergo (+1.64%). Worse than market looked shares of Enakievo Metallurgical Plant (-3.23%). Ukraine expects to receive the second IMF tranche to the amount of USD 1.4 million by mid-August. National Bank Governor Natalia Hontareva told journalists, commenting on results of negotiations with the IMF Mission.
Premarket
External background at the opening is negative. German producer prices are expected to decline 0.7% year-over-year in June followed by the 0.8% fall in May.
The Asian indexes are decreasing today. Nikkei has lowered by 1.01%, Hong Kong Hang Seng declining by 0.05%.
Futures on American indexes are decreasing today from 0.04% to 0.09%.
Russian indexes as of 10:00 a.m. are decreasing — RTS decreasing by 0.80%, MICEX lowers by 0.98%.
Our expectations
We expect opening of the Ukrainian market on neutral territory.
In Europe will be published Italian Industrial New Orders (11:00 AM).
In the U.S. will be published Chicago Fed National Activity Index (3:30 PM).
ITT Investment group
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