Last closure
On Friday, November 14, trades in USA have come to the end with mixed dynamics, as investor reaction to upbeat economic data, namely retail sales and consumer confidence was mostly muted. Retail sales and consumer sentiment data showed Americans were benefiting from lower gas prices and are prepared to increase their spending during the crucial, holiday-shopping season. That promises to be a boon for the economy as retail sales account for one-third of consumer spending, the main engine of U.S. economic activity. The preliminary November reading on the University of Michigan/Thomson Reuters consumer-sentiment index increased to 89.4 — the highest level since July 2007 —from a final October reading of 86.9. On the day’s result, index Dow Jones has declined by 0.10%, S&P has increased by 0.20%, Nasdaq grew by 0.18%.
European stock exchanges closed with growth of main indexes. The Eurozone is growing. Not much, to be fair, but with GDP of 0.2% in the third quarter, its output is better than expected. Germany continues to prove a drag, up just 0.1%, France is growing at 0.3% but it’s economy is fragile, Italy showing a third quarter of contraction. Greece is notching up growth of 0.7%. Portugal is up 0.2%. Poland expanded 0.9%. Consumer prices in Eurozone are also forecasted to grow 0.5% for the year, down from the 0.7% predicted in August. Unemployment was still high at 11.5% in September, which may have contributed to the modifications in the forecast. On the day’s result, British FTSE rose by 0.29%, CAC 40 (France) grew by 0.35%, DAX (Germany) has increased by 0.05%.
Decembers’ contractual price on Brent oil, decreased by $0.18 to $77.74 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 2.99% to 989.52. Share trades capacity on the application market was equal to UAH 7.1 million. Trades capacity on the derivatives market was equal to UAH 4.8 million. Total trades capacity for yesterday — UAH 33 million.
From ten shares of an index basket, nine have risen. Leaders of growth were shares of Ukrnafta (+9.96%) and Alchevsk Metallurgical Plant (+5%). Worse than market looked shares of Avdiivka Coke Plant (-0.52%).
As of October 1, the volume of foreign direct investments in Ukraine in the form of equity capital amounted to US $48.52 bn, which is 14.9% less than at the beginning of the year, reported the State Statistics Service. The SSS informed that in January – September non-residents invested US $1.91 bn and withdrew US $0.89 bn at the same time, but the negative exchange rate difference amounted to US $9.41 bn.
Premarket
External background at the opening is negative. Japan’s economy unexpectedly shrank at a 1.6% annualized pace in the third quarter of 2014.
The Asian indexes are decreasing today. Nikkei has lowered by 2.96%, Hong Kong Hang Seng declining by 1.04%.
Futures on American indexes are decreasing today from 0.40% to 0.47%.
Russian indexes as of 10:00 AM are showing mixed dynamics — MICEX increasing by 0.36%, RTS lowers by 0.14%.
Our expectations
We expect opening of the Ukrainian market by decrease.
ECB President Mario Draghi will be at the Quarterly Hearing before the Committee on Economic and Monetary Affairs (ECON) of the European Parliament in Brussels – 4:00 PM.
In the U.S. will be published industrial production (4:15 PM).
ITT Investment group
