Last closure
On Thursday, October 31, trades in USA have come to the end with growth, after data showed the American economy grew faster than forecast. U.S. gross domestic product grew at a 3.5% annualized pace in the three months ended September after a 4.6% gain in the second quarter. Economists had forecast growth of 3%. Initial claims for state unemployment benefits increased 3,000 to a seasonally adjusted 287,000 for the week ended Oct. 25. The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 250 to 281,000. Federal Reserve Chair Janet Yellen did not comment on monetary policy or the economic outlook in remarks on Thursday prepared for a diversity conference at the central bank. Yellen was speaking one day after the Fed ended its monthly bond purchase program and dropped a characterization of U.S. labor market slack as significant in a show of confidence in the economy's prospects. On the day’s result, index Dow Jones rose by 1.30%, S&P has increased by 0.62%, Nasdaq grew by 0.37%.
European stock exchanges closed with growth of main indexes. Businesses and consumers across the 18 countries that share the euro became slightly more upbeat about their prospects during October, a fresh sign that the currency area's economy is unlikely to slide back into contraction. Economic Sentiment Indicator – a measure of consumer and business confidence – rose to 100.7 in October from 99.9 in September. Economists had expected a decline to 99.7. Germany's number of unemployed dropped by a seasonally adjusted 22,000 in October, easily outpacing forecast of a 4,500 increase and suggesting that the labour market in Europe's largest economy remains robust against a backdrop of weakening economic activity. The unemployment rate held steady at 6.7% in line with forecast. The total number of employed fell from 2.909 million in September to 2.887 million this month. On the day’s result, British FTSE rose by 0.15%, CAC 40 (France) grew by 0.74%, DAX (Germany) has increased by 0.35%.
Novembers’ contractual price on Brent oil, decreased by $0.88 to $86.24 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 0.09% to 1105.96. Share trades capacity on the application market was equal to UAH 5 million. Trades capacity on the derivatives market was equal to UAH 6.4 million. Total trades capacity for yesterday — UAH 32.6 million.
From ten shares of an index basket, four have risen. Leaders of growth were shares of Ukrnafta (+1.56%). Worse than market looked shares of Azovstal Iron and Steel Works (-1.47%).
Russia agreed Thursday to resume selling natural gas to Ukraine, ending a cutoff that had threatened to leave Ukrainian households shivering as winter approached. The agreement appears to set up a truce, at least temporarily, on one front in the wide-ranging conflict between Russia and Ukraine, where pro-Russian rebels have seized territory in Ukraine’s industrial heartland. The Russian Energy Ministry has confirmed an interim gas price for Ukraine at $378 per 1,000 cubic meters, reads a statement posted on the ministry's website.
Premarket
External background at the opening is positive. Retail sales in Germany tumbled 3.2% month-on-month in September, far worse than expected and the biggest monthly decline since May 2007. Last month's 2.5% rise in retail sales was also heavily marked down to 1.5% by the German statistics body. The Asian indexes are growing today. Nikkei rose by 4.83%, Hong Kong Hang Seng increasing by 1.11%.
Futures on American indexes are growing today from 1.09% to 1.29%.
Russian indexes as of 10:00 AM are rising — MICEX increasing by 1.21%, RTS growing by 0.54%.
Our expectations
We expect opening of the Ukrainian market on neutral territory.
In Europe will be published CPI in the E.U. (12:30 AM).
In the U.S. will be published core PCE price index (2:30 PM), employment cost index (2:30 PM), personal spending (2:30 PM) and Michigan consumer sentiment (3:55 PM).
ITT Investment group
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