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Analytics and Market news

Monday, 3 October 2011

Greece cannot overcome the budget deficit

IC IFG CAPITAL, Alexey Sidorov

Domestic stock indices closed the week with a drop under the pressure of pessimism on the European stocks and signs of slowing down of Asian economies.Almost all the shares of UX index basket were situated on the negative territory. Trade volume on the UX market slightly decreased.European indices showed descending motions too.After trade losing in Ukraine, the USA markets of shares increased losses despite the publications of optimistic indices of business activity and consumer sentiments of September.By analyst of IC IFG CAPITAL Alexey Sidorov, the dominating factor on this week becomes Greece default expectation. Despite this event is significantly taken into account in quotations, EU government is doubted to be able to take quick and adequate decisions necessary in case of alike commotions. Report of international inspectors concerning their visit to Athens is expected in 2-3 weeks. Herewith, Greece appeared to not to manage the limits of budget deficit accorded with European creditors and IMF. In the speech of Minister of Finance by the results of governmental meeting it was said that Greece budget deficit is expected at level of USD 25,2 billion which is by almost 2 billion higher than approved by creditors ($23,1 billion).Statistics will correct or strengthen quotations. Following statistics will be published today:10:55 Purchase Management Expectations of Germany 11:00 Industrial Purchase Management Index of Euro-zone17:00 Business Activity in Manufacturing Sphere Index (the USA) Asian indices are majorly in red zone. Statistics is negative. Expected investments to Japanese fixed capital (Tankan) increased in the 3rd quarter by 3%, against 4,2% expected and +4,2% previously.EUR-USD exchange rate strives to new half-year minimums within the news from Athens. Russian RTS index opened the day with a descending gap. Negative external background was formed on the opening. The Futures for UX – UX-12.11. Technical analysis.On the 4-houred timeframe the price placed above the Parabolic indicator. Stochastic, RSI formede 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 Futures and Index decrease by the end of trade session.



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