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Analytics and Market news

Wednesday, 31 August 2011

Speeches of FRS members keep bringing optimism

IC IFG CAPITAL, Alexey Sidorov

On Tuesday on domestic markets the majority of liquid shares quotations made a downgrading correction after the splashing growth in the beginning of the week. Trade volume on the UX market of applications is still low. Bearish moods came from the USA and Europe, stuck in debt problems. In the USA and Europe there is a trend of macro-economical indicators worsening. Index of consumer trust decreased to 44,5 points in August, which is the minimal value for more than 2 past years. The figure expected to decrease from 59,2 only to 52,0 points. Nevertheless, American investors found the positive in the minutes of Federal Committee on Open Markets meeting, though the members of Committee could not find the common decision concerning the action to be taken by FRS in case of further worsening of the USA economy. As a result the stock indices stepped to the positive territory.

Asian indices are in green zone despite the weak statistics from Japan and South Korea. Chinese SSEC, Japanese Nikkei, Korean KOSPI grew by 0,11 %, 0,01 %, 1,97 % respectively. Industrial manufacture of Japan increased by 0,6% in July by preliminary information. It was expected to grow by 1,5%. The previous change was +3,8%.

Industrial manufacture of South Korea decreased by 0,4% in July against +0,6% expected and previous change +0,7%.

Russian RTS index opened the day with growth.

Today there is a consolidation of EUR-USD exchange rate after the serious drop on Tuesday.

Oil prices keep increasing.

An external background on the opening was positive.

Starting from 10:55 today we will see published important information from German labor market and Euro-zone. On 15:15 the USA occupation review will be published. On 16:45 – Business activity index of Middle West.

Analytical department of IC IFG CAPITAL forecasts index and futures decrease by the end of the trade session as a result of downgrading correction from the upper limit of inclined channel, which started its formation in the 2nd half of August; if index is not fixed higher than 1700 points in the first half of the day. 



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