Last closure
On Tuesday, November 4, trades in USA have come to the end with mixed dynamics. The continued slide in oil prices sent energy stocks lower Tuesday, as the broader stock-market indexes made modest moves amid mixed earnings. After stocks’ recent rally to record highs, traders said investors trimmed their stockholdings Tuesday, prompted by the continued slide in oil prices and a warning about economic growth in Europe. New orders for U.S. factory goods fell for second straight month in September, a temporary setback for the manufacturing sector. The Commerce Department said on Tuesday orders dropped 0.6%. August's orders were slightly revised to show a 10.0% fall instead of the previously reported 10.1% decline. On the day’s result, index Dow Jones rose by 0.10%, S&P has lowered by 0.28%, Nasdaq has decreased by 0.33%.
European stock exchanges closed with decrease of main indexes, as officials cut growth forecasts for the euro region, and oil companies plunged on tumbling prices for the commodity. A gauge of oil and gas companies fell 3.8%. West Texas Intermediate dropped to the lowest intraday level in three years as Saudi Arabia cut prices for crude exports to U.S. customers and Brent extended losses in London. European Commission in its economic forecast downgraded the Euro-zone’s economic growth projections to 0.8% and 1.1% for 2014 and 2015 respectively, lower than its earlier forecast of a growth of 1.2% and 1.7% for same periods, citing slowdown in global economy. It also lowered its inflation forecasts for the Eurozone to 0.8% and 1.5% for 2015 and 2016, respectively. Euro-zone’s producer price index increased 0.2% on a monthly basis in September, compared to a drop of 0.2% registered in the prior month, while markets were expecting for the index to record an unchanged reading. On the day’s result, British FTSE has declined by 0.52%, CAC 40 (France) has decreased by 1.52%, DAX (Germany) has lowered by 0.92%.
Decembers’ contractual price on Brent oil, decreased by $1.96 to $82.82 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened by decrease, day passed without certain dynamics. Value of the UX index has increased by 0.01% to 1090.97. Share trades capacity on the application market was equal to UAH 5.4 million. Trades capacity on the derivatives market was equal to UAH 7.7 million. Total trades capacity for yesterday — UAH 29.7 million.
From ten shares of an index basket, seven retreated. Leaders of growth were shares of Azovstal Iron and Steel Works (+1.17%) and Raiffeisen Bank Aval (+1.14%). Worse than market looked shares of Enakievo Metallurgical Plant (-4.09%).
Ukrainian state energy firm Naftogaz said on Tuesday it had transferred $1.45 billion to Russia's Gazprom, the first tranche of debt repayment required by an agreement that will see Moscow resume gas supplies to Ukraine.
Premarket
External background at the opening is neutral. The HSBC China Services Purchasing Managers Index edged down to 52.9 in October from 53.5 in September, although most major components of the index remain solid, HSBC Holdings PLC and data provider Markit. The Asian indexes are showing mixed dynamics today. Nikkei rose by 0.44%, Hong Kong Hang Seng declining by 0.79%.
Futures on American indexes are growing today from 0.37% to 0.43%.
Russian indexes as of 10:00 AM are decreasing — MICEX decreasing by 0.96%, RTS lowers by 2.72%.
Our expectations
We expect opening of the Ukrainian market by decrease.
In Europe will be published services PMI in the E.U. (11:00 AM) and in the U.K. (11:30 AM).
In the U.S. will be published ADP nonfarm employment change (3:15 PM) and ISM non-manufacturing PMI (3:15 PM).
ITT Investment group
