Last closure
On Wednesday, August 20, trades in USA have come to the end with mixed dynamics, after Federal Reserve meeting minutes indicated continued stimulus amid uneven gains in the labor market. Fed officials raised the possibility that an end to aggressive stimulus might occur sooner than anticipated while acknowledging continued slack in the jobs market. Weak wage growth and low inflation have given the Fed room to hold rates near zero even as growth shows signs of accelerating. The Fed is on pace to end its monthly bond purchases in October, and plans to keep rates low for a “considerable time” after that. In their statement after the July 29-30 meeting, Fed officials downplayed recent declines in the unemployment rate, highlighting “significant underutilization of labor resources.” Data since then showed employers added more than 200,000 jobs for a sixth straight month in July, the longest such period since 1997. The jobless rate rose to 6.2% as more people entered the labor force in search of work. On the day’s result, index Dow Jones rose by 0.35%, S&P has increased by 0.25%, Nasdaq has decreased by 0.02%.
European stock exchanges closed with decrease of main indexes, as investors awaited central-bank cues on the interest-rate outlook. Two members of the Bank of England’s monetary policy committee have voted for a 0.25% hike in interest rates in the first split vote on rates since July 2011. The Bank rate has remained at 0.5% since 2009 when it was slashed to try to help nurse the economy back to health, with the UK’s economic recovery fuelling speculation about when it will start to rise again. Factory-gate prices in Germany fell more than expected in July as energy prices continued to depress the index, suggesting further downside risks to the inflation outlook. The producer price index decreased by 0.1% on the month and 0.8% on the year in July, Destatis reported. This compared with forecast expectations of a flat reading on the month and a 0.7% decline on the year. On the day’s result, British FTSE has declined by 0.35%, CAC 40 (France) has decreased by 0.32%, DAX (Germany) has lowered by 0.21%.
Septembers’ contractual price on Brent oil, grew by $0.72 to $102.28 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened by growth, day passed without certain dynamics. Value of the UX index has increased by 0.45% to 1279.06. Share trades capacity on the application market was equal to UAH 4.8 million. Trades capacity on the derivatives market was equal to UAH 2 million. Total trades capacity for yesterday — UAH 28.5 million.
From ten shares of an index basket, six have risen. Leaders of growth were shares of Motor Sich (+3.42%). Worse than market looked shares of Donbasenergo (-3.37%).
Ukraine's central bank said on Wednesday companies must sell all of their foreign currency income on the domestic market, up from the previous 50%, to offset the pressure of a pro-Russian separatist revolt on the Ukrainian currency. The Finance Ministry approached the International Monetary Fund with a proposal to combine the third and fourth tranches of the stand-by loan and to allocate them as one payment.
Premarket
External background at the opening is neutral. The manufacturing sector in China continued to expand in August, although it slowed dramatically, the latest flash purchasing managers' index from HSBC revealed on Thursday - with a score of 50.3. That was well shy of forecasts for a score of 51.5 and down sharply from 51.7 in July. The Asian indexes are showing mixed dynamics today. Nikkei rose by 0.90%, Hong Kong Hang Seng declining by 0.68%.
Futures on American indexes are slightly changing today from -0.02% to +0.01%.
Russian indexes as of 10:0 a.m. are rising — RTS increasing by 0.40%, MICEX growing by 0.56%.
Our expectations
We expect opening of the Ukrainian market by decrease.
In Europe will be published German Manufacturing PMI (10:30 AM), Manufacturing PMI in the E.U. (11:00 AM), and Retail Sales in the U.K. (11:30 AM).
In the U.S. will be published initial jobless claims (3:30 PM), Existing Home Sales (5:00 PM), and Philadelphia Fed Manufacturing Index (5:00 PM).
ITT Investment group
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