Daily Market Reviews by MAYZUS - page 19
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11 April 2014: The Stock Market Of The U.S. Outlined The Correction
By Kristina Leonova: Chief Analyst in Investment Research Department
There is an impression that the markets are moving up and down, without having the opportunity to decide on a further direction. One day, indices are growing, another day, they are decreasing, thereby leveling all growth of the previous sessions.
Yesterday, the European indices finished the trading day in different directions. At the beginning of the trading session, investors won due to positive news from the USA. After that, some of the indices began to fall, due to the fact that there was not a lot of macroeconomic statistical data published. As a result, the index of the London stock exchange, the FTSE 100, grew by 0,1%, the index of the Parisian stock exchange, the CAC 40, lost 0,66%, and the index of the Frankfurt stock exchange, DAX, decreased by 0,55%.
A pessimistic mood began in Europe and was followed by American indices. We saw a substantial increase in the price of indices on Wednesday, but it seems that after that, stock markets decided to have a correction. A push factor was the statistical data on export and import in China, which appeared to be extremely lower than the predictions of analysts. Import of the country made a number of minus 11,3%, at an expected growth of 2,4%. Export appeared to be minus 6,6% at the expected 4,0%.
However, the statistical data coming from the U.S. was of a positive character, but indices could not find strength to move up. The number of primary requests for unemployment benefits in a week, appeared to be slightly less than expectations on 320 thousand, and made a number of 300 thousand. As a result, the Dow Jones Industrial Average index fell by 1,62% to the level of 16170,22 points, the S&P 500 lost 2,09% and reached a level of 1833,08 points, and the Nasdaq Composite had the biggest loss of the day and decreased by 3,1% to the level of 4054,11 points.
Prices of commodities are stable. Brent and WTI are losing 0,26% and 0,30%, traded on levels of $107,24 and $102,07 per barrel. Gold is flat, traded on a price of $1320,86 per troy ounce. Silver is down by 0,24% at $20,04 per troy ounce.
16 April 2014: Trading At The Stock Markets Proceeds Rather Frostily
By Kristina Leonova: Chief Analyst in Investment Research Department
The American indices held one more positive session, thanks to the publications of good corporate and statistical data. The awaited consumer price index, taking into account seasonality and a similar indicator without food and energy carriers, grew by 0,2%, while analysts expected an increase of only 0,1%.
As a result, the Dow Jones Industrial Average index got stronger by 0,55% and was closed on a level of 16262,56 points, the index of the wide market, S&P 500, went into plus by 0,68% up to the level of 1842,98 points, and the index of the hi-tech companies, Nasdaq, rose by 0,29% and reached the level of 4034,16 points.
In the meantime, the situation in the European stock platforms is developing in a different direction. European stock markets are reacting more strongly to the negative news around the situation in Ukraine. Statements that the president of Russia could declare an introduction of troops to the southeast of Ukraine during his press conference tomorrow, the 17th of April, are pushing investors to minimize their risks and close their positions.
Also, the statistical data from Germany, presented yesterday, appeared to be lower than previous indicators. ZEW index made 43,2 points, whereas analysts expected a growth of up to 45,0 points after 46,6 points in March. Meanwhile, it should be noted that the trade balance of the Eurozone increased from 0,8 billion Euros in January, to 13,6 billion Euros in February, showing a significant surplus.
All these factors brought indices to the point where the British FTSE 100 finished the trading session with a loss of 0,64%, the French CAC 40 decreased by 0,89%, and the German DAX went into minus by 1,77%. The regional STXE 600 indicator decreased, in turn, by 1% and was closed on a level of 326,58 points.
This morning, statistical data from China was already published, the GDP of the country of the first quarter showed an increase of 7,4%, at expected value on 7,3%. Retail sales also showed growth and increased to 12,2% from the value of last month of 11,8%, when 12,1% was expected.
MAYZUS Daily Technical Levels
EUR/USD - during the day there is a risk of a technical correction
Our turning point is the level of 1.38350
Our preference: Sell the EUR/USD below the level of 1.38200 with the key targets being: 1.38000, 1.37800 and 1.37600.
Alternative scenario: If the resistance level of 1.38350 is breached up with success, then the pair could rise to 1.38500 and 1.38800.
Analysis: The technical indicators are near to the overbought area and will give a signal to sell the EUR/USD pair soon.
This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.
17 April 2014: The Conflict Concerning Ukraine Is Again Under The Spotlight
Yesterday, stock markets managed to have another positive trading session, which gave indices ground for an increase, even though the published macroeconomic statistical data was not really positive. Building permits dropped from the level of last month to 0,990 million and appeared to be lower than predictions of 1,008 million. The Capacity Utilization Rate, in turn, showed an increase, when analytics expected a decrease, and it finally made 79,2%. Industrial Production dropped from the level of last month, but appeared to be better than predictions making 0,7%.
Also, a positive attitude was brought to the markets by the speech from the head of the FED. During the speech in the economic club of New York, Janet Yellen declared that the FED intends to carry out monetary support for a rather long period of time, in order to promote a smooth economic recovery.
As a result, the Dow Jones Industrial Average index grew by 1% to the level of 16424, 85 points, the S&P 500 added 1,05% and reached a level of 1862,31 points, and the Nasdaq Composite increased by 1,29% and is now traded on the level of 4086,22 points.
Attention should also be paid to the growth of prices of oil. The difficult, semi-military situation around the conflict between Ukraine and Russia pushed prices of oil to go up. Kiev accuses Moscow of attempts of destabilization of the internal political processes in the country. In turn, NATO declared their intention to strengthen the military presence in Eastern Europe. As a result of all these speculations, the price of Brent flew up on Wednesday to $110,00 per barrel, traded this morning on the level of $109,77 per barrel, and adding 0,16%. WTI reached yesterday's price of $105,00 per barrel, traded this morning on the price of $103,20 per barrel, and is currently adding 0,17%.
Prices of precious metals are, in turn, losing in value. Gold is falling by 0,38% and is traded on the level of $1298,61 per troy ounce, silver is down 0,45%, and bargaining at the level of $19,55 per troy ounce.
Today, the main event of the day is going to be the meeting regarding Ukraine in Geneva. Negotiations will definitely be very hard, and it is going to be difficult for the parties to come to a compromise. Western countries do not want to support the process of the federalization of Ukraine, although Russia is, in the meantime, having a very different opinion. If a compromise or a decision between the parties will not be reached, the U.S. authorities could apply additional sanctions concerning Russia.
18 April 2014: Meeting In Geneva Brought Positive Results
Yesterday, what was deemed as the most important event of the day, brought positive and optimistic results. Negotiations went on for 7 hours when only a 2,5 hour meeting was planned. The involved parties came to an agreement an signed the Geneva statement of April the 17th, in which it was declared there was a need to accept the initial, concrete steps on the de-escalation of intensity, and establish safety for all citizens of Ukraine. In the signed document, all the members of the meeting accepted the fact that it is necessary to disarm all illegal paramilitary groups, to return occupied buildings to their legitimate owners, and to free all of the seized squares and streets across the entire Ukraine.
Even though the results of the meeting in Geneva were considered to be very optimistic, the situation in the country remains tentative and there is still a long way to go until the conflict is resolved.
The Ministry of Labor of the U.S. presented data on the American labor market. The number of primary requests for unemployment benefits grew for the week by only 2 thousand, to the level of 304 thousand, whilst analysts were expecting an increase of up to 315 thousand. The average amount of applications for the last 4 weeks, as a result, fell to 312 000, having reached the lowest value since October 2007. Additionally, the index of business activity in the manufacturing industry of the FED of Philadelphia, grew in April to 16,6 points against the forecast of 10,0 points.
As a result, the Dow Jones Industrial Average index lost just 0,1% and finished the trading session at the level of 16408,54 points. In turn, the Nasdaq Composite index grew by 0,23% to the level of 4095,52 points, and the S&P 500 added 0,14% and reached a level of 1864,85 points.
European stock markets were also boosted by positive statistics from the U.S. and decisions taken in relation to Ukraine. From the statistics in the region, it is possible to note the dynamics of the price index of producers of Germany for March, which decreased by 0,3% on a monthly expression, and 0,9% on an yearly expression, whereas analysts predicted zero change in the monthly calculation and a decrease of 0,7% based over a year.
Following the results of the trading session, the British FTSE 100 added 0,62%, the French CAC 40 grew by 0,59%, and the German DAX went to plus on 0,99%. The regional STXE 600 indicator increased, in turn, by 0,5% and was closed on the level of 332,43 points.
Today, activity in the market is going to be lower than usual in connection with the day off in Europe, the USA, Australia, and Hong Kong.
23 April 2014: Results From The Largest American Companies Are Pushing Indices Up
Reports from the largest American companies who demonstrated good quarterly results, are pushing indices up. Due to this, optimism continues in the American stock market. The Dow Jones Industrial Average Index raised 0,4% to the level of 16514,37 points, the index of the wide market, Standard & Poor's 500, increased by 0,41% to the level of 1879,55 points, and the index of high-tech industries, Nasdaq Composite, went to a plus on 0,97% and reached the level of 4161,46 points.
European stock markets also had a rather positive trading session. The British index, FTSE 100, grew by 0,85%, the French CAC 40 added 1,18%, and the German DAX went to a plus on 2,02%. The regional STXE 600 indicator increased, in turn, by 1,4% and was closed on the level of 337,03 points. This morning, indices are bargaining at the previous levels reached, and positive attitudes were also brought on by published macroeconomic data.
The index of business activity in the services sector of the Eurozone, according to the preliminary data, made 53,1 points in April, whilst analysts were only expecting an increase to the level of 52,4 points. The previous value was on the level of 52,2 points. The index of business activity in the industry sector of the Eurozone, according to the preliminary data, made 53,3 points in April, moving up from the level of 53,0 points, recorded last month. Analysts were expecting the level of 53,0 points only.
This morning, a lot of important macroeconomic statistical reports were published. Later, during the course of the day, we are going to see statistics on sales of new houses in the American market. We would like you to note that it seems economists are rather optimistic, predicting an increase of the indicator in March to 0,451 million from 0,440 million the previous month. Also, the weekly data on the dynamics of stocks of oil is going to be presented late in the evening.
24 April 2014: Apple And Facebook Are Surprising Markets With Quarterly Results
As we noted yesterday, the reporting season in the USA passed successfully. The biggest companies are presenting positive results and showing an increase in profit. Yesterday, two of the largest and most popular companies presented their reports, and both showed optimistic development.
Apple continues to show phenomenal numbers, confirming that the net profit of the company is growing, the volume of buy-back was increased to 90 billion dollars, and the size of liquid assets and cash on accounts of the company, makes 156 billion dollars. Facebook also reflected profit growth, but in the stock market, at the current stage, shares of Apple look more interesting to invest in as opposed to Facebook, although both companies’ shares showed growth over the course of yesterday’s trading sessio
Awaited numbers on the sales of new houses in the USA made 0,384 million, while analysts expected the indicator to increase from 0,449 million the month earlier, to 0,450 million in March. The index of business activity in the industry sector also showed a decrease, the indicator made 55,4 points, whereas analysts expected the indicator to be on the level of 56,0 points.
As a result, indices finished the trading session on almost the same levels as the day before. The Dow Jones Industrial Average index lost 0,08% and was closed on the level of 16501,65 points, the index of the wide market, S&P 500, went to minus by 0,22% to the level of 1875,39 points, and the index of hi-tech companies, Nasdaq, decreased 0,83%, reaching the level of the 4126,97 points.
Today in the morning in Europe, we already saw the data on the index of the business climate of Germany, which showed an increase to the level of 110,7 points, even though analysts were waiting for a decrease from the level of 111,2 points to 110,5 points. Later today, attention needs to be paid to the number of durable goods orders and initial jobless claims in the U.S.
25 April 2014: The Markets Drift Due To Disappointing News
Yesterday, the American stock market had another moderate trading session, which helped indices to keep their gained positions, and even show a small increase. The stock market was again supported by good quarterly results of companies such as Apple, Caterpillar and Microsoft. Additionally, data on orders of goods of long use in March showed a growth of 2,6%, whilst analysts predicted a level of only 2,0%.
At the same time, negative news flooded the markets. The number of primary requests for unemployment benefits increased to 329 thousand from 305 thousand the previous month, when analysts were expecting the number to be on the level of 310 thousand. Also, the index of business activity in the industry of the FED of Kansas in April decreased to 12 points from 22 points a month earlier.
Additionally, the situation with the conflict in Ukraine is still influencing the market and brings even more uncertainty, as the situation in the country before the weekend keeps getting worse. This morning, the S&P agency lowered the sovereign rating of the Russian Federation from “BBB” to “BBB-“, which is definitely a very bad signal for the country and will have a bad influence on the opening of the trading session in Rus
The trading session in the stock market in the U.S yesterday finished with the Dow Jones Industrial Average index being unchanged, and closing the day at the level of 16501,65 points. The index of the wide market, S&P 500, grew by 0,17% to the level of 1878,61 points, and the index of the hi-tech companies, Nasdaq, added 0,52% and reached the level of 4148,34 points.
European stock markets already opened the trading day, and are trading in the red zone. Prices of commodities are also bargaining without any significant change. Brent and WTI are losing 0,35% and 0.32% accordingly, traded on levels of $109,95 and $101,62 per barrel. Gold is up by 0,20% and is traded on a level of $1293,14 per troy ounce, silver is losing 0,48% and is on the price of $19,59 per troy ounce.
25 April 2014: FORECAST FOR APRIL 28 – MAY 2, 201
Next week will be filled with macro and microeconomic data from the major world’s economies
Let us revise key events of the week.
Monday, April 28
First day of the working week will not have much news from the major world’s economies. Retail sales from Japan are worth paying attention to, as well as pending home sales in the US
Tuesday, April 29
Traders interested in NZD should pay attention to the trade balance of New Zealand that will be published at 1:45 a.m. (GMT+3).
During the day, traders will pay attention to the Great Britain’s GDP. GBPUSD will be volatile
S&P Case-Shiller Index will be published at 4 p.m. It shows change of the price of housing in 20 regions of the USA.
An hour after that, the US Consumer Confidence index will be announced by the Conference Board.
Wednesday, April 30
Clients interested in JPY should pay attention to the industrial manufacturing numbers that will be published in Japan at 2:50 a.m.
AUD might be volatile at 4:30 a.m., when private sector loans stats will be announced.
Major Eurozone countries will provide their stats in the morning (terminal time), including Consumer Climate from Germany, Consumer Spending from France, GDP from Spain and German unemployment level.
Traders will switch their attention to the USA at 3:15 p.m. ADP will publish information about new jobs that can provide a fist assessment of the situation on the labor market. It is expected that the US economy has created 178 new jobs in April.
US and Canadian GDPs will be published at 3:30 p.m.
The Federal Reserve meeting results will be announced at 9 p.m. The meeting will decide the future of the interest rate and QE3 cuts. Certain trading instruments will be volatile.
Thursday, May 1
Europe is celebrating the Labor Day on May 1st, and all major stock exchanges in Europe will be closed.
China will publish its Manufacturing PMI at 4 a.m., and Britain will do the same at 11:30 a.m.
The USA will be providing a range of economic indices during the day. The list includes consumers’ income and expenditure, a number of applications for unemployment benefits and ISM index
Friday, May 2
A level of unemployment in Japan, Japanese household spending and Australian PPI will be published during the Asian session.
Germany, France and Eurozone will provide their PMIs during the day. Eurozone’s unemployment rate will be announced in the afternoon
Change in Non-farm Payrolls and a number of new jobs will become key events of Friday. According to experts’ expectations, USA should create 181 thousand new jobs and unemployment should drop from 6.7% to 6.5%
US Labor market stats will attract attention of traders all over the world, and volatility will be extremely high.
This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.
28 APRIL 2014: INVESTORS ARE WAITING FOR FED MEETING THIS WEEK
The beginning of the week has again been influenced by the situation in Ukraine, where intensity continues to strengthen. During Friday’s telephone conference leaders of France, the USA, Germany and Italy, discussed the possibility of an introduction of new sanctions against Russia, thus heads of all four countries believe that the Russian Federation, according to the accepted arrangements, have to take action towards the de-escalation of the conflict, and refuse provocative statements. At the same time, the U.S. are easy going when it comes to the introduction of new sanctions, but European countries are not really willing to proceed with the same attitude, as they are going to become safer due to these actions, and are affected by the situation much more than the U.S
On Friday, the Dow Jones Industrial Average index finished the trading session with a loss of 0,75% and was closed on a level of 16378,05 points, the index of the wide market, S&P 500, went to a minus by 0,76% and reached the level of 1864,33 points, and the index of the hi-tech companies, Nasdaq, fell by 1,68% to the level of 4078,79 points.
European indices also finished the trading week rather differently, but mainly in negative territory. The British FTSE 100 lost 0,26%, the French index, CAC 40, added 0,80%, and the German DAX went to a minus by 1,54%. The regional STXE 600 indicator decreased, in turn, by 0,80% and was closed on a level of 333,5 points. This morning, indices opened the trading week at almost the same levels they closed with on Friday. The FTSE 100 adds 0,26%, the DAX index adds 0,27% so far, and the CAC 40 grows by 0,19%.
Today, the economic calendar is rather empty, and there aren't any important macroeconomic reports expected, but special attention should be paid to the results of the meeting of the FED, results which we will be able to see on Wednesday the 30th of April, 2014. On Thursday, the majority of the stock markets will be closed in relation to the celebration of Labour Day.