Last closure
On Friday, October 31, trades in USA have come to the end with growth, as the Bank of Japan unexpectedly increased its target for monetary stimulus. The BOJ boosted its annual target for enlarging the monetary base to 80 trillion yen ($724 billion) from 60 to 70 trillion yen. Adding impetus to the stock rally, Japan’s public pension fund, the world’s biggest, boosted its target for equity holdings. The Fed’s most important inflation number, Core PCE Price Index, rose 0.1% m/m and 1.5% y/y, as expected. Disappointments came from personal spending, that fell 0.2% m/m contrary to an expected growth of 0.1%. Personal income also fell short of expectations with 0.2% instead of 0.3% expected. However, the employment cost index increased by 0.7% in Q3, which was higher than the 0.5% expected by economists. On the day’s result, index Dow Jones rose by 1.13%, S&P has increased by 1.17%, Nasdaq grew by 1.41%.
European stock exchanges closed with growth of main indexes. Eurozone inflation rose slightly in October as expected by economists. Inflation rose to 0.4% in October from 0.3% in September. It has been below the 2% ceiling since February 2013. The euro area jobless rate remained stable at 11.5% in September, a separate data showed. The rate came in line with expectations. Compared with August, the number of persons unemployed decreased by 19,000 in September. On a yearly basis, unemployment plunged 826,000. On the day’s result, British FTSE rose by 1.28%, CAC 40 (France) grew by 2.22%, DAX (Germany) has increased by 2.33%.
Novembers’ contractual price on Brent oil, decreased by $0.38 to $85.86 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 0.76% to 1114.38. Share trades capacity on the application market was equal to UAH 5.3 million. Trades capacity on the derivatives market was equal to UAH 1.8 million. Total trades capacity for yesterday — UAH 37.2 million.
From ten shares of an index basket, five have risen. Leaders of growth were shares of Azovstal Iron and Steel Works (+4.16%) and Ukrnafta (+2.13%). Worse than market looked shares of Alchevsk Metallurgical Plant (-1.99%).
Russian-backed rebels held elections in their self-proclaimed people’s republics in eastern Ukraine. Fighting has continued almost daily since the belligerents agreed to a cease-fire in Minsk, the capital of Belarus, on Sept 5. The U.S. and the European Union blame Russian President Vladimir Putin’s government for instigating the conflict. Russia denies involvement. The European Commission has estimated the value of trilateral agreements reached in Brussels on October 30 regarding the terms of Russian gas supplies to Ukraine until March 31, 2015 at $4.6 billion.
Premarket
External background at the opening is neutral. The HSBC China Manufacturing Purchasing Managers Index, a gauge of nationwide manufacturing activity, rose to a final reading of 50.4 in October from 50.2 in September, HSBC Holdings PLC said Monday. The final reading was unchanged from HSBC's preliminary 50.4 for October, announced October 23. The preliminary figure is based on 85% to 90% of responses to its PMI survey. The Asian indexes are decreasing growing today. Futures on American indexes are decreasing today from 0.10% to 0.15%.
Russian indexes as of 9:50 AM are showing mixed dynamics — MICEX increasing by 0.21%, RTS lowers by 1.05%.
Our expectations
We expect opening of the Ukrainian market by decrease.
In Europe will be published manufacturing PMI in Italy, France, Germany, in the U.K, and in the E.U (10:45-11:30 AM).
In the U.S. will be published ISM Manufacturing PMI (5:00 PM).
ITT Investment group
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