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Analytics and Market news

Thursday, 8 December 2011

Chinese locomotive slows down

IC IFG CAPITAL, Alexey Sidorov

On Wednesday 07.12.2011 European indices stepped into the red zone, affected by the information of discordances of European politicians concerning debt crisis resolution method. Pressure to the quotations of domestic shares was rendered by complicated political situation in Russia too.

The majority of shares of UX index basket were traded in the red zone. Trade activity on the market of applications decreased.

Quotations were majorly growing in the USA.

The market opened with majorly bearish moods.

S&P warned it may downgrade EU credit rating and ratings of largest Euro-region banks in case of realization of previously announced decision of reconsidering regional countries ratings to downgrading. Among banks which are put to reconsideration with a probable downgrade are largest Euro-regional banks as French Societe Generale, BNP Paribas and German Deutsche Bank.

Herewith, it is worth to note analysts’ report of Barclays Capital investment department, who decreased the forecast on Chinese economy growth for 2012. They believe the trend of slowing down will dominate in Chinese economy in the 1st quarter 2012, and its growth will drop to 7,8% annually. At once, Chinese realtors announced of decrease by 44% in amount of deals on housing sales in 26 largest cities of the country during the last week of December, against the same week year ago.

Macro background is negative too. Quantity of workforce in non-agricultural sector of France did not change in November. Growth was expected.

Following statistics will be published today:

15:30 Unemployment applications (the USA)

Asian stock indices show the decreasing motions, affected by negative statistics from realty market of China. Chinese SSEC, Japanese Nikkei, Korean KOSPI lost by 0,12%, 0,66%, 0,37% respectively.

EUR-USD exchange rate and Brent oil price grow.

Russian RTS index is on the positive territory.

Positive external background was formed on the opening.

The Futures for UX – UX-12.11. Technical analysis.

On the 4-houred timeframe the price is below the Parabolic indicator. Stochastic, RSI and MACD keep the signs to sell. The trend is bullish.

On the quarter timeframe the price placed below the Parabolic indicator, still close to break the line. Oscillators do not give the univocal signs. The trend is bearish.

By analyst of IC IFG CAPITAL Alexey Sidorov, investors will postpone playing negative  news today before obtaining the information from ECB and Labor Ministry of the USA.

Inflow of important information will start on 14:45 with announcement of ECB of interest rate.

Analytical department of IC IFG CAPITAL forecasts index and futures increase by the results of the trade session.

IC IFG CAPITAL, LLC

Alexey Sidorov

ik.ifgcapital.com.ua
www.ifgcapital.com.ua



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