On Wednesday 09.11.2011 on domestic stocks initiative was taken by bears. Italian 10-year bonds overcame the 7% point, which became a sign to sell. By analyst of IC IFG CAPITAL Alexey Sidorov, this event showed that the situation on European debt market has a great potential to worsening, which will be realized if current temps of anti-crisis measures taking last. The majority of UX index basket shares were traded in the red zone. Trade volume on the market of applications increased.
The USA and EU stock indicators suffered great losses within the European negative.
Italian factor playing will apparently last today on developed markets. EUR-USD rate speaks for it. After yesterday fall, rate did not show the more or less visible upward leap and strived to new monthly minimums.
Brent oil price acquits the same way despite data on oil and petrol savings in the USA promote correction of downgrading dynamics.
Commercial savings of row oil in the USA decreased by 1,4 million barrels to 338,1 million barrels during the period from 29.10 to 04.11. Analysts expected the savings to increase by 400 thousand barrels.
Decrease of quotations will also be promoted by EFSF representative’s claim that fund has no intentions to render financial help to Italy due to lack of assets. We remind you that EFSF is planned to be enlarged by the end of November in more than 2 times.
Liquidity if the USA stock market will be decreased by the auction of placement of 30-year bonds. It is planned to sell securities for $16 billion.
Financial results of Cisco Systems and information of successful formation of coalitional government of Greece become the weak consolation for bulls.
Profit excluding some expenses of world’s largest net equipment provider reached 43 cents per share, while analysts expected 39 cents per share. Sales in revised period increased by 4,7% to $11,3 billion.
Following substantial statistics will be published today:
11:00 ECB monthly report.
15:30 Index of import prices (the USA)
15:30 Trade balance (the USA)
15:30 Unemployment applications (the USA)
Asian indices demonstrate drop. Chinese SSEC, Japanese Nikkei, Korean KOSPI lost by 1,8 %, 2,9 %, 4,9 % respectively. Weak statistics on China became the additional decreasing driver. Positive trade balance totaled $17,033 billion in October, against $24,90 billion expected and $14,51 billion previously. Chinese import volumes increase by 28,7% in October, against +23% expected and +20,9% previously. Herewith export volumes increased by 15,9% the same period, while growth by 16,5% was expected after increase by 17,1%. Quotations could have been supported by manufacturing price index but good inflation data were already played by the market. Manufacturing price index of China increased in October by the year to a minimal value of 5.0% against +5,8% expected and September’s growth by 6,5%.
Russian RTS index opened the day on the negative territory.
Negative external background was formed on the opening.
The Futures for UX – UX-12.11. Technical analysis.
On the 4-houred timeframe the price broke the line of Parabolic indicator from upside. Stochastic and RSI formed the signs to sell. The trend is bullish.
On the quarter timeframe the price placed below the Parabolic indicator. Oscillators are close to their minimal values. The trend is bearish.
Analytical department of IC IFG CAPITAL forecasts Futures and Index decrease by the end of trade session.
IC IFG CAPITAL, LLC
Alexey Sidorov
www.ik.ifgcapital.com.ua
www.ifgcapital.com.ua
