Last closure
On Friday, September 12, trades in USA have come to the end with decrease, after data showing retail sales climbed bolstered the case for the Federal Reserve to raise interest rates. Brent crude sank to a two-year low. US retail sales rose by 0.6% in August, compared with the previous month, driven by car purchases. On a yearly basis, they rose by 5%. Increases in spending came from car sales, up 9.5% from August 2013, and healthcare stores, up 8.1% from last year. Retail sales account for 70% of the US economy and analysts said the figures pointed to stronger overall economic growth. The University of Michigan's preliminary reading on September consumer confidence came in at 84.6. Expectations were for the reading to come in at 83.5, up from 82.5 in August's final reading. That number soundly beat expectations. U.S. business inventories rose in July, but probably not enough to change views that stock accumulation could be a minor drag on economic growth in the third quarter. The Commerce Department said on Friday inventories increased 0.4% after an unrevised 0.4% gain in June. Economists had forecast inventories, which are a key component of gross domestic product changes, climbing 0.4%. On the day’s result, index Dow Jones has declined by 0.36%, S&P has lowered by 0.60%, Nasdaq has decreased by 0.53%.
European stock exchanges closed with mixed dynamics of main indexes. Industrial production across the 18 countries that share the euro rose more sharply than expected in July, an indication that the currency area's economy returned to growth after flatlining in the second quarter. The European Union's statistics agency also said Friday that despite stagnant economic output in the three months to June, the number of people in work rose by 0.2%, a pickup from the 0.1% rate of increase recorded in the three months to March. On the day’s result, British FTSE rose by 0.11%, CAC 40 (France) grew by 0.02%, DAX (Germany) has lowered by 0.41%.
Octobers’ contractual price on Brent oil, decreased by $0.97 to $97.11 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 1.26% to 1125.73. Share trades capacity on the application market was equal to UAH 5.1 million. Trades capacity on the derivatives market was equal to UAH 5.3 million. Total trades capacity for yesterday — UAH 28.6 million.
From ten shares of an index basket, eight have risen. Leaders of growth were shares of Ukrsotsbank (+4.84%), Donbasenergo (+4.31%) and Azovstal Iron and Steel Works (+3.77%). Worse than market looked shares of Enakievo Metallurgical Plant (-2.91%).
NBU head says GDP in 2014 may fall by 10%. The sharp deterioration of the situation in Ukraine's east has forced Kyiv to revise the forecast of the GDP fall in 2014, head of the National Bank of Ukraine Valeria Hontareva has said. “I believe it will be minus 9%. Or even minus 10%”, she said. The EU is ready to continue to provide financial assistance to Ukraine, in particular, it is about EUR 760 million that the country can get in October, President of the European Commission Jose Manuel Barroso said.
Premarket
External background at the opening is neutral.
The Asian indexes are showing mixed dynamics today. Nikkei rose by 0.25%, Hong Kong Hang Seng declining by 0.74%.
Futures on American indexes are decreasing today from 0.25% to 0.30%.
Russian indexes as of 10:03 AM are rising — MICEX increasing by 0.15%, RTS growing by 0.02%.
Our expectations
We expect opening of the Ukrainian market on neutral territory.
In Europe will be published Trade Balance in the E.U. (12:00 AM).
In the U.S. will be published NY Empire State Manufacturing Index (3:30 PM) and data on Industrial Production (4:15 PM).
ITT Investment group
