On Wednesday 27.07.2011 domestic stock indices kept decreasing under the pressure of fastened drop of European and American indices. Investors mention only the factors of tensed situations on the debt markets of the USA and Europe. Goldman Sachs bank downgraded the European banking sector to neutral from overweight due to the debt crisis. This made an additional affect on the European share ratings.
Spanish and Italian bonds yield had an increase. Greece obtained the second tranche of financial aid, which is decreasing intension for some time, but still is not a resolution of all problems. It is an additional stress for European banking sector, aside from financial regulations mitigation and weak reports of certain banks.
The USA pessimism was enforced by weak data on the orders volume for durables and by the data of economic activity slowdown, published by FRS. Economic activity slowed in the major part of territory of the USA. In so called “Beige book” of FRS it is noted that economic activity worsened in June-first half of July in 8 out of 12 FRS districts.
Corporate reports are majorly positive.
In the 3rd quarter of financial year Visa paying system received the net profits totaling $1 billion, exceeding by 40% the result of the same period previous year ($716 million). Operational income increased by 18% - to $1,35 billion and total income increased by 14% - to $2,32 billion.
The external background on the opening may be estimated as negative.
Asian stock indices decrease. Chinese SSEC, Japanese Nikkei, Korean KOSPI lost 0,89 %, 1,45 %, 0,85 % respectively. Japanese retail trade volumes increased by 1,1% in June 2011 in comparison with June 2010 (by preliminary information). The information was published by the Ministry of Economy, Trade and Industry of the country. Analysts, otherwise, expected this figure to decrease by 0,5% in annual estimation. Japanese retail volumes increased by 2,9% in June, in comparison with May results.
The growth of retail trade volumes, fixed in the previous month may be a sign that Japanese consumer demand is slightly improved after the destructive earthquake and tsunami, happened on March 11, 2011.
Following significant information will be published today:
10:55 German unemployment quantity
10:55 German unemployment index
15:30 Unemployment applications (the USA)
17:00 Unaccomplished housing sales (the USA)
Russian RTS index opened the day on the negative territory.
The Futures for UX Index 6.11. Technical analysis.
On the 4-houred timeframe the price broke from top the line of Parabolic indicator. Stochastic gives the sign to buy. The trend is lateral.
On the quarter timeframe the price placed below the Parabolic indicator. Stochastic and RSI are on the territory of reselling. The trend is bearish.
Analytical department of IC IFG CAPITAL forecasts index and futures decrease by the end of trade session. It is connected to the expectance of the majority of players to plant themselves on the waiting positions, until the USA political debt-game is over. The part of investors will continue selling with an orientation to the external background. Wednesday trade volumes is slightly higher than summer-average and it points to the further decrease potential.
