Last closure
On Tuesday, July 29, trades in USA have come to the end with decrease, as President Barack Obama announced new sanctions against Russia and warned its actions in Ukraine are “setting back decades of progress”. The U.S. sanctioned three Russian banks and a state-owned shipbuilder that serves Russia’s navy and oil and gas industry, joining with the European Union in escalating the penalties for Russia over its actions in Ukraine. The 10-City S&P/Case-Shiller House Price Index rose 9.4% year-over-year while the 20-City measure climbed 9.3%. That pace is significantly lower than the rates the indices increased in April: 10.9% and 10.8%, respectively. It is also the slowest rate since Feb. 2013. The Conference Board Consumer Confidence Index(R), which had improved in June, increased in July. The Present Situation Index increased to 88.3 from 86.3, while the Expectations Index rose to 92.7 from 86.4 in June. Twitter rallied 33%. After the market close, the microblogging company said active membership in the second quarter reached 271 million, with year-over-year growth at 24%, compared with 25% in the prior period. On the day’s result, index Dow Jones has declined by 0.42%, S&P has lowered by 0.45%, Nasdaq has decreased by 0.05%.
European stock exchanges closed with growth of main indexes, as companies including Ferrovial SA and Next Plc reported better-than-expected results. Ferrovial rose 1.2% after the Spanish construction company posted first-half profit that exceeded projections and said it will buy back shares. The EU curbed Russia’s access to bank financing and advanced technology in its widest-ranging sanctions yet. EU governments agreed to bar Russian state-owned banks from selling shares or bonds in Europe and restricted the export of equipment to modernize the oil industry, a key prop for Russia’s economy, an EU official said. On the day’s result, British FTSE rose by 0.29%, CAC 40 (France) grew by 0.48%, DAX (Germany) has increased by 0.58%.
Augusts’ contractual price on Brent oil, grew by $0.15 to $107.72 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 0.57% to 1337.36. Share trades capacity on the application market was equal to UAH 10.7 million. Trades capacity on the derivatives market was equal to UAH 10.8 million. Total trades capacity for yesterday — UAH 47.7 million.
From ten shares of an index basket, three have risen. Leaders of growth were shares of Centerenergo (+0.59%). Worse than market looked shares of Avdiivka Coke Plant (-3.39%).
Managing Director of the International Monetary Fund (IMF) Christine Lagarde has urged the Ukrainian authorities to continue the implementation of reforms, including the package of measures needed to complete the first review of the stand-by program of cooperation with the fund, according a statement released by the IMF on Tuesday. The National Bank of Ukraine (NBU) limits the issue of cash for banks through pay offices and ATMs to UAH 150,000 per a client a day from current and deposit accounts.
Premarket
External background at the opening is positive.
The Asian indexes are growing today. Nikkei rose by 0.18%, Hong Kong Hang Seng increasing by 0.88%.
Futures on American indexes are growing today from 0.16% to 0.22%.
Russian indexes as of 10:00 a.m. are rising — RTS increasing by 1.39%, MICEX growing by 1.29%.
Our expectations
We expect opening of the Ukrainian market by growth.
In Europe will be published Spanish GDP (10:00 AM) and data on Business Climate in the E.U. (12:00 AM).
In the U.S. will be published ADP Nonfarm Employment Change (3:15 PM) and data on GDP (3:30 PM).
U.S. Federal Reserve's Federal Open Market Committee (FOMC) announces decision on interest rates.
ITT Investment group
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