On Tuesday 11.10.11 Ukrainian stock indices moved back to local minimums affected by disappointment in actions of European politicians struggling with debt crisis. The main decreasing driver was news of EU summit on Greece questions is postponed. There appeared some complications in Slovakia in ratification of July summit decision concerning EFSF enlargement. The majority UX index basket securities were traded in red zone. Trade volume on the market of applications increased.
Stock indices in Europe were majorly traded in red zone. Only German DAX showed growth at the end of the session (+0,30%). Quotations were supported by speech of Chairman of European Committee where EU was announced to prepare offers on bank recapitalization by October 12, 2011.
American indices did not show the uniform dynamics too. They were affected by expectations of publication of first corporate reports and bonds placements, though positive was dominating.
It is worth to admit important news for today.
Slovakia’s Parliament blocked plans of EFSF enlargement. The next voting will admittedly take place on Friday.
Investors will somehow be calmed down with the readiness of international credit organizations to guarantee rendering Greece credit the next month.
The largest in the USA aluminum producer, Alcoa reported of its profit in the 3rd quarter which could not manage to meet analysts forecast. Company’sprofit excluding some costs was 14 cents a share last quarter, trailing the 22 cents forecast by analysts. The net profit of the company is reported to be $172 million or 15 cents per share against $61 million and 15 cents per share previous year. Herewith, Alcoa’s sales increased by 21% - from $5,29 billion to $6,4 billion, versus expectations of $6,23 billion.
Two international rating agencies – S&P and Fitch Ratings downgraded ratings of largest Spain’s banks within the worsening of Spanish economy. Fitch also downgraded ratings of leading banks of Italy, including the largest one – Intesa Sanpaolo. Fitch also put to reconsideration the outlook for UniCredit. This news is weakly negative – investors got used to credit ratings downgrading.
Long-term threats for markets restorations are contained in confirmation of bill pointed to the implementation of sanctions against China for retention of Chinese yuan on the lower level.
Asian indices show different dynamics. Chinese SSEC, Korean KOSPI increased by 2,43% and 0,81% respectively. Japanese Nikkei lost 0,25%. Statistics weakly influence the quotations. Unemployment could not affect the growth in South Korea. This indicator reached 3,2% in September, against 3,1% previously.
Orders for machinery manufacture in Japan increased by 11,0% in August, versus increase by 4,9% expected and -8,2% previously.
Russian RTS index is on the positive territory.
By analyst of IC IFG CAPITAL Alexey Sidorov, unstable neutral external background was formed on the opening. Alcoa’s report is not uniquely negative. The USA market is not quite sure about following directions. Yesterday negative news from Europe are played, we can see it by an upward leap at the end of the session.
The Futures for UX – UX-12.11. Technical analysis.
On the 4-houred timeframe the price broke the line of the Parabolic indicator from top. Oscillators do not give the univocal signs. The trend is bearish.
On the quarter timeframe the price placed above the Parabolic indicator. Oscillators give the signs to buy. The trend is bearish.
Analytical department of IC IFG CAPITAL forecasts Futures and Index increase by the end of trade session as a result of formation of leap from the strong resistance level.
