On Friday 13.01.2012 the threat of sovereign credit rates of EU countries soared under the markets. Results of primary auction of Italian bonds placement was weak positive factor. Average yield totaled 4.83% on this auction against 5.62% reached on the similar auction placed about 2 weeks ago.
But bearish signs visibly dominated. Private creditors terminated negotiations with Greece about debt discarding, which was expected by the majority of participants. The USA statistics is unfavorable too. Profit per share and bank profit of JPMorgan decreased more than expected in the 4th quarter. Contradictory information was published. Negative external trade balance of the USA increased to $47.8 billion within the forecasts of growth to $45 billion. Preliminary Consumer sentiment index of Michigan University increased more than expected in January and reached 74 points, which is significantly higher than the ‘transitional level’ of 50 points.
The majority of shares of UX index basket were traded on the negative territory.
Trade volume on the market of applications changed slightly. By analyst of IC IFG CAPITAL Alexey Sidorov, domestic indices weakly played the in-day upward leaps on the key-markets and reacted to the negative hard. This speaks of strong short-term decreasing trend.
European markets will possibly be under the pressure because of yesterday actions of S&P. We remind you that long-term sovereign ratings of Italy, Spain, Cyprus and Portugal were downgraded by 2 steps. The similar ratings of Austria, Malta, Slovakia, Slovenia and France were downgraded by 1 step.
Trade in the USA is not held due to the national fest, important macro-statistics will not be published today. Bears should not wait for important surprises.
Negative external background was formed on the opening.
Forward market analysis. Put/Call Ratio finally returned to the ‘bearish territory’, increased in several times. By the whole factors we suppose that the level of 1400 points will hardly resist the pressure of bears today.
The Futures for UX – UX-3.12. Technical analysis.
On the 4-houred timeframe the price placed above the Parabolic indicator. Stochastic and RSI are close to their minimal values. The trend is bearish.
On the quarter timeframe the price placed below the Parabolic indicator. Stochastic and RSI are close to their minimal values. The trend is bearish.
Analytical department of IC IFG CAPITAL forecasts index and futures decrease by the results of the trade session.
IC IFG CAPITAL, LLC
Alexey Sidorov
ik.ifgcapital.com.ua
www.ifgcapital.com.ua
