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Analytics and Market news

Friday, 2 September 2011

European banking sector is under threat

IC IFG CAPITAL, Alexey Sidorov

Yesterday the majority of liquid shares of Ukrainian Issuers were on the negative territory. American, European and Russian indices moved in different directions, which pushed players to fix profits. This may be explained by the fact that indifference on the internal and external markets does not contribute middle-term long positions on shares to be opened. As a result, all shares of UX index basket, except Ukrnafta, decreased. Trade volume on the UX market of applications has a slow growth.

In the USA stock indices stepped out of lateral trend and dropped in peak after different statistics was reconsidered. We should kindly remind you that the information from labor market was neutral in general. Quantity of applications and repeated applications for unemployment benefits slightly decreased. Probably, this was caused by pessimistic expectations concerning unemployment and work places quantity in non-agricultural sector.

European stock indices had different dynamics.

Political games around debts and uncoiling the issue of European banking capital insufficiency heep pressing the quotations. Chairman of Bundesbank Weidmann criticized ECB for governmental bonds purchase. IASB followed IMF and alerted that the range of banks reflected the discarding of Greece bonds incorrectly in financial reports.

As a result EUR keeps decreasing against USD.

Asian indices decrease. Chinese SSEC, Japanese Nikkei, Korean KOSPI dropped by 0,78 %, 1,21 %, 0,69 % respectively. Chinese investors cannot revive after the announcement of Fitch international rating agency concerning the possibility of Chinese credit rating decrease due to default quantity and inflation temp increase. Capital expenses had a sufficient drop in Japan. This figure was expected to have grown.

Russian RTS index opened the day with a substantial decrease.

The external background on the opening is determined as negative.

Following important statistics will be published today:

15:30 Average hourly wages (the USA).

15:30 Quantity of work places in non-agricultural sector (the USA)

15:30 Unemployment index (the USA)

15:30 Average working week duration (the USA)

The Futures for UX Index 6.11. Technical analysis.

On the 4-houred timeframe the price stays above the Parabolic indicator. Stochastic and RSI formed the signs to sell. The trend is lateral.

On the quarter timeframe the price placed above the Parabolic indicator. Oscillators demonstrate the dynamics close to neutral. 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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