Last closure
On Wednesday, November 5, trades in USA have come to the end with mixed dynamics, as the Republican Party won control of the Senate and a rebound in oil fueled gains in energy shares. Republicans picked up seven Senate seats and could gain more, allowing Mitch McConnell, Republican leader of the chamber since 2007, to set the legislative agenda for the final two years of Barack Obama’s presidency. US job numbers have been solid in recent readings, and the trend continued with ADP Nonfarm Payrolls on Wednesday. The key indicator climbed to 230 thousand, easily beating the estimate of 214 thousand. This marked the indicator’s strongest showing in 2014. We’ll get a look at Unemployment Claims and the official Nonfarm Payrolls later in the week. Institute of Supply Management said its non-manufacturing purchasing manager's index fell to 57.1 last month from a reading of 58.6 in September. Analysts had expected the index to inch down to 58.0 in October. The Non-Manufacturing Business Activity Index decreased to 60.0, which is 2.9 points lower than the September reading of 62.9. The New Orders Index registered 59.1, 1.9 points lower than the reading of 61.0 in September. The Employment Index increased 1.1 points to 59.6 from the September reading of 58.5 and indicates growth for the eighth consecutive month. On the day’s result, index Dow Jones rose by 0.58%, S&P has increased by 0.57%, Nasdaq has decreased by 0.06%.
European stock exchanges closed with growth of main indexes. The final Eurozone composite purchasing managers' index edged higher to 52.1 in October, up from 52.0 in the prior month. The Eurozone services business activity index posted 52.3 in October, down from September's 52.4 and below the flash estimate (also 52.4). The manufacturing purchasing managers' index was 50.6 in October, up from September's 14-month low of 50.3. Germany's private sector grew in October for the 18th month in a row. Markit's final composite Purchasing Managers' Index (PMI), which tracks activity in the manufacturing and services sectors that account for more than two-thirds of the economy, fell to 53.9 from 54.1 in September. On the day’s result, British FTSE rose by 1.32%, CAC 40 (France) grew by 1.89%, DAX (Germany) has increased by 1.63%.
Decembers’ contractual price on Brent oil, grew by $0.13 to $82.95 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened on neutral territory, day passed with positive dynamics. Value of the UX index has increased by 1.39% to 1106.15. Share trades capacity on the application market was equal to UAH 5.1 million. Trades capacity on the derivatives market was equal to UAH 3.9 million. Total trades capacity for yesterday — UAH 25.3 million.
From ten shares of an index basket, nine have risen. Leaders of growth were shares of Enakievo Metallurgical Plant (+4.14%). Worse than market looked shares of Krukivsky Carriage Works (-0.62%).
The areas of Donetsk region, which are not controlled by the central authorities, demand UAH 19.6 billion in subventions from the state budget, while rebel-controlled areas of Luhansk region need UAH 14.6 billion this year, but they won't get them under the current circumstances, Ukrainian Prime Minister Arseniy Yatseniuk has said. The deficit of free balance of payments of Ukraine decreased to US $5 mn in Q2 the current year compared with US $4.3 bn in Q1, reported the National Bank.
Premarket
External background at the opening is negative. German factory orders rose 0.8% in September after a revised decline of 4.2% in August. Economists predicted an increase of 2.3%.
The Asian indexes are decreasing today. Nikkei has lowered by 0.86%, Hong Kong Hang Seng declining by 0.23%.
Futures on American indexes are decreasing today from 0.10% to 0.21%.
Russian indexes as of 10:01 AM are showing mixed dynamics — MICEX increasing by 1.11%, RTS lowers by 0.16%.
Our expectations
We expect opening of the Ukrainian market by decrease.
In Europe will be published interest rate decision by BOE and ECB (2:30-2:45 PM).
In the U.S. will be published initial jobless claims (3:30 PM) and data on nonfarm productivity (3:30 PM).
ITT Investment group
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