Last closure
On Tuesday, May 12, trades in USA have come to the end with decrease, followed a selloff in European markets. The number of job openings declined in March, to 4.99 million from 5.144 million in February, missing expectations. Expectations were for Tuesday's report to show number of job openings fell slightly in March, to 5.108 million. The San Francisco Fed's John Williams thinks the Fed should raise rates sooner rather than later. Speaking in New York on Tuesday, Williams said that that, the decision to raise rates is actually three decisions: Not just when, but how quickly and how high. I see a safer course in a gradual increase, and that calls for starting a bit earlier. In corporate news, Verizon Communications Inc. is buying AOL Inc. in a $4.4 billion deal. Verizon shares slipped 0.4%, while those of AOL surged 19%. On the day’s result, index Dow Jones has declined by 0.20%, S&P has lowered by 0.29%, Nasdaq has decreased by 0.35%.
European stock exchanges closed with decrease of main indexes, as recent signs of a return to stability in the market proved short-lived. Many investors had grown nervous as the European Central Bank’s bond-buying stimulus program pushed yields to record lows. U.K. industrial production gained 0.5% in March from the previous month, the Office for National Statistics said in London on Tuesday. Economists had forecast no change. On the day’s result, British FTSE has declined by 1.37%, CAC 40 (France) has decreased by 1.06%, DAX (Germany) has lowered by 1.72%.
June’s contractual price on Brent oil, grew by $1.95 to $66.86 per barrel.
In Ukraine
Trades on the Ukrainian stock exchange opened on neutral territory, day passed with negative dynamics. Value of the UX index has declined by 1.41% to 1053.70. Share trades capacity on the application market was equal to UAH 3.6 million. Trades capacity on the derivatives market was equal to UAH 7.1 million. Total trades capacity for yesterday — UAH 21.6 million.
From ten shares of an index basket, eight declined. Leaders of growth were shares of Ukrnafta (+0.77%). Worse than market looked shares of Alchevsk Metallurgical Plant (-6.83%).
State-owned Ukrzaliznytsia has notified creditors of the occurrence of a technical default on its debt obligations and started negotiations to restructure its internal and external debts worth UAH 32 billion. The IMF has the same forecast regarding the development of the Ukrainian economy, the GDP decline is expected at the level of 5.5%. The largest decline in production is expected in Russia - 3.8%, and in Ukraine - 5.5%.
Premarket
External background at the opening is neutral. Gross domestic product in Germany, the eurozone's largest economy, expanded 0.3% from the previous quarter, or a 1.1% annualized rate, the country's statistics agency said. That marked a sharper-than-expected slowdown from the 0.7% rate of growth recorded in the final three months of 2014. China’s industrial output rose 5.9% in April from a year earlier, up from March’s 5.6%, and non-rural fixed-asset investment climbed 12% in the year through April. The Asian indexes are showing mixed dynamics today. Nikkei rose by 0.71%, Hong Kong Hang Seng declining by 0.41%.
Futures on American indexes are growing today from 0.27% to 0.29%.
Our expectations
We expect opening of the Ukrainian market by growth.
In Europe will be published GDP and industrial production in the E.U. (12:00 EET).
In the U.S. will be published retail sales (15:30 EET) and business inventories (17:00 EET).
ITT Investment group
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