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Analytics and Market news

Monday, 8 August 2011

The USA lose ratings

IC IFG CAPITAL, Alexey Sidorov

By analyst of IC IFG CAPITAL Alexey Sidorov, Ukrainian trade market finished the previous week with largest sales affected by the results of trade closing in the USA.

Ukrainian and American indices fell within the high trade volumes. This is a signal that the majority of investors does not believe in quick normalization of the situation and has no hopes concerning the USA FRS session, it is supposed that the rings of new program of bonds redemption will be announced there.

The USA economy rating decrease will become the main decreasing driver today. Standard & Poor's international rating agency downgraded the USA rating for the first time in history from AAA level to AA+ with a negative forecast on development of the country within the threat of budget deficit growth.

The event affects an oil price and EUR-USD exchange rate greatly, because of their vivid tendencies to raise or drop respectively.

The external background is estimated as negative.

Asian stock players pessimistically conceived American rating decrease. Chinese SSEC, Japanese Nikkei, Korean KOSPI lost by 3,52 %, 2,18 %, 3,82 % respectively.

European indices suffered great losses under the pressure of the next aggravation in the sovereign debt market and weak corporate reports. Certain support should be given to the shares of European issuers by “Great Seven” (G7) announcement of an intention to perform the coordinated actions to support markets, financial stability and economical growth. Herewith we can forecast the resumption of problem countries bonds purchasing by the European Central Bank.

Russian RTS index rapidly drop.

The Futures for UX Index 6.11. Technical analysis.

On the 4-houred timeframe the price placed below the Parabolic indicator. Stochastic and RSI formed signs to purchase. The trend is bearish.

On the quarter timeframe the price placed below the Parabolic indicator. Oscillators do not give the univocal signs. The trend is lateral.

Analytical department of IC IFG CAPITAL forecasts index and futures decrease by the end of trade session. 



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