Last closure
On Tuesday, August 19, trades in USA have come to the end with growth, as data showed a strengthening economy with inflation running below Federal Reserve targets. Housing starts climbed 15.7% last month to an annual rate of 1.093 million units. That marked the highest level of construction since November, driven by a pronounced rise in new apartments. Home construction rose 22% in the year through July. The number of building permits issues in the U.S. rose significantly more than expected in July by 8.1% to a seasonally adjusted 1.052 million units from June's total of 973,000. U.S. consumer prices rose in July at the slowest pace in five months. Consumer prices edged up a seasonally adjusted 0.1% last month, after larger gains of 0.3% in June and 0.4% in May. It was the smallest increase since a similar 0.1% rise in February. On the day’s result, index Dow Jones rose by 0.48%, S&P has increased by 0.50%, Nasdaq grew by 0.43%.
European stock exchanges closed with growth of main indexes. The UK's annual inflation rate fell more sharply than expected in July, dimming the prospects of an interest rate rise in 2014. The consumer prices index fell to 1.6% from 1.9% in June, marking the seventh month in a row that annual inflation has registered below the Bank of England's 2% target. Economists had expected a smaller fall to 1.8%. The eurozone's current account surplus narrowed in June. The current account balance, a broad measure of an economy's international financial position, was in a surplus of €13.1 billion in adjusted terms in June, below €19.8 billion in May. For the 12-month period that ended in June 2014, the surplus was 2.4% of the eurozone's gross domestic product, higher than the 2.1% in the 12 months to June 2013. On the day’s result, British FTSE rose by 0.56%, CAC 40 (France) grew by 0.56%, DAX (Germany) has increased by 0.96%.
Septembers’ contractual price on Brent oil, decreased by $0.04 to $101.56 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened by decrease, day passed with dynamics. Value of the UX index has increased by 0.78% to 1273.27. Share trades capacity on the application market was equal to UAH 6.5 million. Trades capacity on the derivatives market was equal to UAH 2.5 million. Total trades capacity for yesterday — UAH 35.7 million.
From ten shares of an index basket, seven have risen. Leaders of growth were shares of Motor Sich (+1.80%). Worse than market looked shares of Alchevsk Metallurgical Plant (-0.86%).
Ukraine's Prosecutor General's Office is investigating a case opened against the managers of PJSC Ukrnafta on charges of abuse of office, as a result of which the company's enterprises fell short of over UAH 640 million.
Premarket
External background at the opening is neutral.
Japan's exports rose for the first time in three months by 3.9% in July from the year ago period. Factory-gate prices in Germany fell more than expected in July by 0.1% on the month and 0.8% on the year in July. This compared with forecast expectations of a flat reading on the month and a 0.7% decline on the year. Ukrainian anti-terrorist operation forces are continuing to conduct street fighting against militants in city of Luhansk.
The Asian indexes are growing today. Nikkei rose by 0.03%, Hong Kong Hang Seng increasing by 0.11%.
Futures on American indexes are slightly decreasing today from 0.03% to 0.06%.
Russian indexes as of 10:00 a.m. are showing mixed dynamics — RTS decreasing by 0.07%, MICEX growing by 0.07%.
Our expectations
We expect opening of the Ukrainian market on neutral territory.
In Europe will be published index Monetary Policy Committee Minutes in the U.K. (11:30 AM).
In the U.S., Federal Open Market Committee issues minutes of its meetings (9:00 PM).
ITT Investment group
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