Last closure
On Monday, September 22, trades in USA have come to the end with decrease, led by small-cap shares, and commodities tumbled to a five-year low. Sales of existing homes fell 1.8% from July to a seasonally adjusted annual rate of 5.05 million in August. Sales were down 5.3% from a year earlier, when the pace stood at 5.33 million. Still, August sales stood at the second-highest pace of 2014. The Federal Reserve Bank of Chicago's National Activity Index – a weighted average of 85 indicators of the U.S. economy – fell to -0.21 in August from +0.26 in July. Any reading below zero points to below-average growth. Dudley, speaking at the Bloomberg Markets Most Influential Summit in New York, said it’s important not to ignore the uncertainty surrounding the projections. “I have a dot for 2015, 2016 and 2017,” Dudley said. “But if I told you what my confidence interval around that dot was, you would probably not put a lot of weight on where that dot is precisely located.” On the day’s result, index Dow Jones has declined by 0.62%, S&P has lowered by 0.80%, Nasdaq has decreased by 1.14%.
European stock exchanges closed with decrease of main indexes, as China’s finance minister damped speculation his government will boost economic stimulus. Chinese Finance Minister Lou Jiwei reiterated that his government won’t make any major policy adjustments in response to changes in individual economic indicators, even as he said growth faces downward pressure. The European Central Bank stands ready to use additional unconventional tools and tweak its existing efforts to spur inflation and growth in the euro zone if needed, ECB President Mario Draghi said. Speaking to the economic and monetary affairs committee of the European parliament, Draghi also said he expects more demand from banks for its new ultra-long loan programme, known as TLTROs, when the funding is offered again in December. Consumer confidence in the 18 countries that share the euro weakened for the fourth straight month in September, likely reflecting disappointment with the pace of the eurozone's economic recovery and the conflict in Ukraine. Preliminary measure of consumer confidence fell to minus 11.4 in September from minus 10.0 in August. Economists had expected a fall to minus 10.5. On the day’s result, British FTSE has declined by 0.94%, CAC 40 (France) has decreased by 0.42%, DAX (Germany) has lowered by 0.51%.
Octobers’ contractual price on Brent oil, decreased by $1.42 to $96.97 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened by growth, day passed with positive dynamics. Value of the UX index has increased by 3.25% to 1078.32. Share trades capacity on the application market was equal to UAH 5.6 million. Trades capacity on the derivatives market was equal to UAH 7.1 million. Total trades capacity for yesterday — UAH 32.1 million.
All ten shares of an index basket have risen. Leaders of growth were shares of Avdiivka Coke Plant (+27.77%) and Alchevsk Metallurgical Plant (+7.86%).
In attempt to feed its domestic market with much needed foreign currency, the National Bank of Ukraine on Monday eased requirements on conversion of incoming money, and simultaneously slashed the amount of currency a private person can buy at a bank in one day. The bank said the measures will be temporary, and will be cancelled following the normalization of the currency market. In order to avoid a total depletion of foreign currency reserves, the National Bank in March introduced a daily limit on converting hryvnia to foreign currency of 15,000 hryvnia (about $1,500 at that time) per citizen. The bank will now let them keep a quarter of their revenue in foreign currency, but has slashed the daily amount of convertible cash to 3,000 hryvnia ($220).
Premarket
External background at the opening is neutral. The flash estimate for China’s HSBC/Markit manufacturing PMI in September unexpectedly improved to 50.5 (consensus: 50.0, DBM: 49.4) from a final reading of 50.2 in August. The HSBC/Markit manufacturing PMI is still off its peak at 51.7 in July, but today’s manufacturing PMI (unlike the very weak industrial production data for August) suggests that growth in manufacturing activity has only slowed moderately in recent months.
The Asian indexes are decreasing today. Nikkei has lowered by 0.71%, Hong Kong Hang Seng declining by 0.03%.
Futures on American indexes are slightly changing today from -0.06% to +0.02%.
Russian indexes as of 9:40 AM are rising — MICEX increasing by 0.52%, RTS growing by 0.45%.
Our expectations
We expect opening of the Ukrainian market by decrease.
In Europe will be published German Manufacturing PMI (10:30 AM) and Manufacturing PMI in the E.U. (11:00 AM).
In the U.S. will be published chain store sales (2:45 PM), House Price Index (4:00 PM), and data on durable goods orders (3:30 PM).
St. Louis Federal Reserve Bank President James Bullard opens community banking conference and holds press briefing, in St. Louis.
ITT Investment group
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