Last closure
On Monday, October 20, trades in USA have come to the end with growth, as optimism over corporate earnings spurred a rebound from last week’s selloff. Federal Reserve Bank of New York President William Dudley said the government will have to consider breaking up large financial institutions if Wall Street doesn’t stop excessive risk-taking and breaking the law. Mr. Dudley, in a speech sharply critical of bank behavior, also suggested top management bear the financial brunt of regulatory fines levied for wrongdoing. Federal Reserve Gov. Jerome Powell didn’t address monetary policy or the economy in introductory remarks he made to a Webinar on community banking on Friday. He repeated the central bank’s position that it is aware community banks could be unduly hurt by new financial regulations, and is taking care to make sure to set rules in a way that is commensurate with a bank’s size and activities. Apple Inc., which rose 2.1% during regular trading, gained after exchanges closed on higher-than-forecast sales. Hasbro Inc. climbed 4.9% after reporting profit that beat estimates. International Business Machines Corp. slid 7.1%, closing at the lowest price since 2011, after abandoning an earnings forecast for 2015. On the day’s result, index Dow Jones rose by 0.12%, S&P has increased by 0.91%, Nasdaq grew by 1.35%.
European stock exchanges closed with decrease of main indexes, as worse-than-estimated financial results added to concerns over the region’s economic recovery. European equities have led a rout that erased as much as $5.5 trillion from the value of shares worldwide amid speculation that the European Central Bank’s stimulus measures will not be enough to spur growth. Germany's producer prices index continued its fall on an annual basis in September, as energy costs kept it under downward pressure, while it remained steady on the month earlier. Producer prices were unchanged on the month and fell 1.0 per cent on the year. Philips slipped 3.7% to 21.26 euros. Earnings before interest, taxes, amortization and one-time items fell to 536 million euros in the third quarter, less than the 554 million euros projected by analysts. On the day’s result, British FTSE has declined by 0.68%, CAC 40 (France) has decreased by 1.04%, DAX (Germany) has lowered by 1.50%.
Novembers’ contractual price on Brent oil, decreased by $0.76 to $85.40 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened decrease, day passed without certain dynamics. Value of the UX index has declined by 0.70% to 1101.45. Share trades capacity on the application market was equal to UAH 6.2 million. Trades capacity on the derivatives market was equal to UAH 3.2 million. Total trades capacity for yesterday — UAH 34.4 million.
From ten shares of an index basket, six retreated. Leaders of growth were shares of Raiffeisen Donbasenergo (+2.76%) and Enakievo Metallurgical Plant (+1.81%). Worse than market looked shares of Ukrnafta (-5.81%) and Krukivsky Carriage Works (-2.71%). List of Ukrnafta shareholders that have the right to receive dividends was made according to the register of the company as of October 20, 2014. Ukraine has paid the third coupon of $46.875 million on 2013 ten-year eurobonds. The ministry said that the bonds worth $1.25 billion were placed at 7.5% per annum.
Premarket
External background at the opening is negative. China's economy grew at its slowest pace in more than five years in the third quarter, but the data still topped estimates. Gross domestic product growth for the July-September quarter came in at 7.3% from the year-ago period, beating a Reuters forecast for a 7.2% expansion and after the 7.5% growth in the second quarter. The Asian indexes are decreasing today. Nikkei has lowered by 2.03%, Hong Kong Hang Seng declining by 0.02%.
Futures on American indexes are decreasing today from 0.4% to 0.5%.
Russian indexes as of 10:00 AM are decreasing — MICEX decreasing by 0.84%, RTS lowers by 0.90%.
Our expectations
We expect opening of the Ukrainian market by decrease.
In the U.S. will be published chain store sales (2:45 PM) and data on existing home sales (5:00 PM).
ITT Investment group
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