August 27th, 2009

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Europe: statistics from the United States bears awoke from hibernation

Thursday, August 27th, 2009

 

Thursday, 27 August, virtually all European stock markets have shown negative dynamics due to the fact that the number of problematic banks in the United States reached a maximum of fifteen, and the data on the U.S. labor market were worse than analysts' forecasts.

The key results of the auctions the UK FTSE 100 index dropped by 2.57%, French CAC 40 was closed in a minus on 3,04%, while the German DAX lowered from its asset 3,02%. Regional Dow Stoxx 600 index fell 2.78% and closed at a level of 202.48 points.

Number of primary applications for unemployment benefits fell in the United States last week to 10 thousand people and has reached 570 thousand, while the expected decrease to 565 thousand

number of problem banks in the U.S. grew in the second quarter of this year to 416 in connection with losses incurred in the banking sector. FDIC (Federal Deposit Insurance Corporation) has reported that the increased costs associated with the growth of bad loans and falling asset values, the losses of the banking sector reached $ 3.7 billion

Diageo shares fell 4.4% in trading in London after the world's largest producer of alcoholic drinks reported that the growth of its operating profit in 2010 fiscal year, much slower, because the prospects for reviving the global economy remain murky.

Paper Credit Agricole rose 3.9% due to the fact that the profit of the third by market value in France, the Bank of the second quarter rose more than 2 times. According to the report Credit Agricole, net profit reached 201 million euros ($ 286 million) due to reduction of losses in the investment banking division. For comparison, last year the figure was 76 million euros.


Quotations

its rival Natixis rose by 14% after Citigroup analysts raised their recommendations on the securities the bank to sell to hold. Click to continue »

Futures on the RTS index closed on a mark of 105 800 points, losing 0.5%

Thursday, August 27th, 2009

Substantive session on FORTS ended different direction: no clear-cut leaders rising or falling. Trading volume amounted to $ 1 808 498 906, and the open interest in futures has grown to 3 262 362 contracts for the option of up to 3 697 764 contracts.

Futures on the RTS index closed at a price of 105 800 points, losing 0.47%. The number of open positions in futures on the index was 364 480 contracts.

contract on ordinary shares of Uralsvyazinform above all today, looked the day, typing per session 10,13%. Among the other contracts there was no such recovery, but there was a strong fall. Among the contracts, closed in the red, mostly in shares of Russia's oil and gas companies, where the decline was an average of 0,77% - 1,22%. Has also declined in price contract on ordinary shares of OAO Severstal (-1,75%), a contract on ordinary shares of OAO Novatek (-2,1%).

the plus finished day contract on ordinary shares of OAO Tatneft (2,37%), the contract for shares in OAO Gazprom (0,2%), contracts for the ordinary shares of OAO Sberbank of Russia (0,56 %) and preferred (1,44%), as well as on ordinary shares RusHydro (0.19%).

Among foreign currency contracts rose above all the contract for the euro-ruble (0.6%). And on the commercial section of the contract for Brent crude oil continued to decline and closed at ENE 70.91, losing 0.14%.

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Vladimir Putin: The liberalization of domestic energy markets should be completed by 2030

Thursday, August 27th, 2009

By 2030, work on the liberalization of domestic energy markets should be finalized, said Prime Minister Vladimir Putin at a government meeting on the draft Energy Strategy of Russia until 2030.

By the year 2030 to complete work on the liberalization of domestic energy markets. And on the trading floors should be sold not less than 20% of energy - the prime minister said.

According to him, through the implementation of the state's energy strategy fully ensure long-term needs of the national economy in energy, strengthen the position in the global market.

In this regard, said Vladimir Putin, to create significant spare capacity. The dramatic situation of the accident at the Sayan-Shushenskaya GES has once again shown how it is critically important. The draft strategy states that by 2030, power reserve must be somewhere at 17% of the total installed capacity of power plants in Russia, - said the head of government . Click to continue »

Fitch upgraded the ratings of VTB Georgia and assigned them to forecast Stable

Thursday, August 27th, 2009

Fitch Ratings upgraded the long-term Issuer Default ratings (IDR) in foreign currency ProCredit Bank, Georgia JSC Bank VTB (Georgia) from level B to BB-rating and deleted from the list Rating Watch Negative .

Also, Fitch Ratings affirmed the long-term IDR at TBC Bank B, assigned a Stable outlook and deleted rating from Rating Watch Negative. Long-term IDR of Bank of Georgia is affirmed at B, and the weather changed from negative to Stable.

Past actions follow the increase in the country ceiling of Georgia on August 26 from level B to BB- and an affirmation of the sovereign long-term RDE in foreign and local currency ratings at B from Stable outlook.

Conducted rating actions:

ProCredit Bank:

Long-term foreign currency IDR upgraded to the level B to BB-, excluded from Rating Watch Negative, assigned to Stable outlook. Long-term local currency IDR is affirmed at BB-, excluded from Rating Watch Negative, assigned to Stable outlook. Short-term RDE in foreign and local currency ratings affirmed at B . Support rating upgraded to '4 to 3. Click to continue »

Overview of the oil market for 26.08.09

Thursday, August 27th, 2009

Dynamics

Quotes of the oil market on Wednesday, August 26 closed lower, as data on stocks of petroleum products in the United States continued to grow and strengthen as a result of the U.S. dollar in the foreign exchange market, FOREX.

At the New York Stock Exchange NYMEH the October futures price of U.S. crude fell by 0.62 dollar and its price, thus, amounted to 71.43 dollar per barrel.

The exchange ICE in London, Brent oil price fell 0.17 to 71.65 dollars per barrel.

Causes

On Wednesday, August 26 quotes on the market of black gold have shown downward trend due to increase its reserves in the U.S. over the past week. So, according to U.S. Department of Energy oil reserves have increased by 0,128 million barrels, gasoline inventories fell by 1.7 million barrels, distillate stocks increased by 0,767 million barrels of refining capacity load factor was 84.1%. The U.S. dollar has been supported by the output better than expected, data on the volume of orders for durable goods, as well as increased sales of new homes. Stock quotes have shown a systematic decline, reflecting the continuing uncertainty of investors regarding the medium-term prospects of the economy, thereby providing a negative pressure on the oil sector.

From news worth noting that the OAO Tatneft received the flow of oil at the well of the Libyan deposit. Click to continue »

European stock markets declined on the basis of trading environment on the background of fixed income investors

Thursday, August 27th, 2009

Europe

European stock markets declined on the basis of trading environment on the background of fixed income investors, and despite the encouraging macroeconomic data from Germany and the United States. Pan-European index of blue chip FTSEurofirst 300 dropped to 0.47 per cent to 974.19 points, halting a four-day rally. Sales of new homes in the U.S. in July rose by 9.6 percent in monthly terms and amounted to 0,433 million units. Germany's business climate index calculated by the German economic institute Ifo, rose in August of 2009 to 90.5 points from the revised upward the July values at the level of 87.4 points.

FT-SE 100 -5.97 -0.12%
DAX -7.82 -0.14%
CAC40 0.21 0.01%

U.S.

U.S. stock market as a whole has remained virtually the same positions on Wednesday, as investors remain cautious after rally, despite optimistic about sales of homes and orders for durable goods consumption. After a five-month recovery, which resulted in the SP 500 index rose by 52 per cent with a minimum level of closure in 12 years March 9, members have questioned the sustainability of this rally, despite the fact that economic data show improvement in demand. The Dow Jones rose 0.04 percent to 9.543,52 points. Index of Standard Poor s 500 added 0.01 percent to 1.028,12 points. The Nasdaq Composite Index rose to 0.01 percent to 2.024,43 points. In July new home sales in the U.S. grew fastest in 10 months, showed data from the Ministry trade, but the impact on these statistics, the market was negligible, since, according to some market players, this factor has already been taken into account. However, these data have benefited the housing sector. Building the Dow Jones index jumped 3 percent. The company's shares Home Depot Inc, the largest retailer of products for arrangement of the house, went up by 0.9 per cent.

DJIA 4.23 0.04%
SP 500 0.12 0.01%
NASDAQ COMPOSITE INDEX 0.20 0.01%
NASDAQ 100 -2.90 -0.18%

Click to continue »

Kyivkhlib increased the price of bread Ukrainian and a loaf of 5-6% to 3,16 UAH. and 2,64 UAH. August 31

Thursday, August 27th, 2009

One of the largest manufacturers of Kiev's bread and bakery products company Kyivkhlib raised the price of bread Ukrainian and a loaf of 5-6%, or $ 0.16, and 0.14 hryvnia to 3.16 and 2.64 hryvnia respectively, from 31 August.

this at a press conference, said CEO Vladimir turn.

We are obliged to 31 numbers (August) to revise the price of 2 kinds of bread - bread Ukrainian and bread - he said.

According to him, the bread Ukrainian will rise in price of 16 kopecks., and retail will cost 3,16 UAH. per loaf, and bread, which the company manufactures weighing 500 g, increases of 14 kopecks. and will cost 2,64 UAH.

The succession

stressed that the price of this product after the increase would be consistent with the average across Ukraine.

Top manager noted that Kyivkhlib is the only company that does not revise prices in July 2008, while the cost of all components of the cost for this period has increased significantly.

If we meet the world grain prices, how bread can cost a penny? - Said turn.

He added that the prices of other breads massive company has not reviewed, although their production is unprofitable as well as the types of bread on which it was decided to raise prices.

As an example, the general director led the profitability of bread Ukrainian, which now stands at minus 5.7% in the 1 half-year 2009. Click to continue »

Forex - Asia

Thursday, August 27th, 2009

index of the Tokyo Stock Exchange Nikkei (Nikkei) fell 165.74 points (-1.56%) and closed at 10473.97. Yield of 10-year Japanese government bonds is 1.300 (dropped from the previous closing on 0.005). Index of the Hong Kong Stock Exchange Haeng Seng (Hang Seng) fell 202.72 points (-0.99%) and is located at 20253.60.

Currency

dollar /yen sank to the Asian session, with the level of 94.25 to 93.36. The euro /yen fell 100 points to a mark of 133.11. Rate pound /yen sank to 150 points to level 151.34. Strengthening yen is a consequence of reduced investor interest in risky instruments. Reduction of interest contributes to a drop in prices on stock markets.

The euro /dollar established within 1.4217-1.4267. Activity on the forex market remains quite low.

price index for Nationwide Real Estate company in the UK for August was 1.6% for the month, -2.7% for the year (the forecast was 0.5% for the month, -3.9% for the year, the previous value of 1.3% for the month, -6.2% for the year ).

Consumer Price Index (CPI) of Saxony (Saxony) in Germany for August was 0.1% for the month, -0.1% for the year (the previous value of 0.0% for the month, -0.6% per year).

index of consumer confidence (Consumer confidence) in Italy in August amounted to 111.8 (forecast was 107.8, the previous value of 107.5).

Today is scheduled for release the following data:

at 08:00 GMT - an index of money supply M3 in Europe (16) for July (forecast 3.3% per year, the previous value of 3.5% per year);

at 08:00 GMT - an index of money supply M3 in Europe (16) for three months, including July (forecast 3.5% per year, the previous value of 4.1% per year);

at 10:00 GMT - review of the British Confederation of Industrialists (CBI): the balance of total retail sales (Retail sales volume balance) in the UK for August (the previous value of -15%);

at 12:30 GMT - the number of applications for unemployment benefits (Jobless claims) in the United States for the week to 22.08 (forecast 565K per week, the previous value of 576K per week);

at 12:30 GMT - improved value of the index of gross domestic product (GDP) in the U.S. Click to continue »

In the coming days, investors' attention on Russia's stock market will be focused on the dynamics of oil prices

Thursday, August 27th, 2009

Today we see a neutral opening of trading on Russia's stock market. At the market, on the one hand, has a positive effect of the positive statistics from the states, on the other - indexes pulls down a little cheapened oil.

In the U.S. yesterday published data on new home sales in July, which were significantly better prognosis: 433 thousand against 390 thousand is also of expected increased orders for durable goods in July - 4.9% vs expected 3.0%. This may indicate a revival of consumer demand in the states. However, oil reserves for the week nearly unchanged, although it was expected to decline by about one million barrels. But it may be associated with a significant reduction in their week ago (on 8mln. Barrels), so the trend is to reduce the stocks may still be continued.

Today at 16.30 Moscow time is scheduled for release revised data on U.S. GDP for the second quarter (estimated -1.5%) and the number of applications for unemployment benefits per week (estimated 565 thousand).

At the end of the trading session on Wednesday, the U.S. indices closed near 0, is also being traded and their futures. Oil is just above 71 dollars per barrel., And the price is almost equal Brent Light Sweet. Euro has fallen in price against the dollar and quotes couples fell to 1.4250 marks. Ruble is the relative weakening of American and the single European currency: the dollar is worth 31.50r., Euro - 44.80r.

In the coming days, likely investors' attention on Russia's stock market will no longer attracted to American statistics, but to the dynamics of oil prices. And depending on whether the top or down the price of black gold will come from a range of 68 - $ 74 per barrel. - Will depend on further growth /fall in Russia's stock market - after its release, respectively, from a range 1000ГђВї. - 1100p. the RTS index.

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Russia's lag indices from the western markets like the possibility of a more substantial correction in the coming weeks

Thursday, August 27th, 2009

Russia market opens on Wednesday in a neutral territory: the positive dynamics of quotations of oil futures to offset a sharp decline yesterday. However, as soon as the decline in oil prices resumed, Russia's indexes also made their way down, as a result of the MICEX index in the middle of the session has reached 1 100 points, which moved in a sluggish consolidation. The next wave of decline began after five hours of the day, the MICEX index dropped to 1,085 points. Good statistics on the real estate market, published in the United States, supported the bull, however, rebound limited return to the levels of mid-day, in closure of the MICEX index was 1 099.77 points (-1.44%), the RTS 1 072.05 points (-2.81%).

outsiders against the background of weak commodity markets are oil and gas sector (MICEX OG -1,47%) and metallurgy (MICEX MM -1,45%). Losses incurred shares of oil companies (obychka Tatneft -3.34% -2.09% Lukoil, Rosneft -1,66%). The consolidated statements of Gazprom (-0.96%) for 1 square. 2009 was higher than expectations, failed to provide serious support to the shares of the company - the influence of the external background proved to be stronger. Our position in respect of shares of Gazprom, in spite of good reporting, remains unchanged: a large gap in production and reducing demand for natural gas remain the main factors, which indicates the weak attractiveness of the company. At the general background, the shares of Transneft (5.74%) due to information that earlier period could be completed pipeline BPS-2. In metallurgy strong rehabilitative decrease occurred in the shares of NLMK (-5.08%), worse than the market looked MMC Norilsk Nickel (-2.44%) and Polyus Gold (-2.83%). Better the market looked like the telecommunications sector (MICEX TLC 0,81%), where he continued selective purchases in shares of MRK whereby prefecture Uralsvyazinform soared 9.43%, and the prefecture Sibirtelecom added 8,85%.

Expectations for today: oil prices, although a few batted from the lows yesterday, do not look too optimistic, but the Asian markets dominated by the sale. In these conditions, Russia's indexes in the morning is likely to resume movement toward the lower boundary of steady lateral range for the MICEX index is the nearest support 1 070 points. More distant prospects continue to look not too bright, a marked reluctance of investors to win back any positive news, in sharp contrast to the unbridled optimism of spring, and continues to gradually increase the lag indices from Russia's western markets resemble the possibility of a more substantial correction in the coming weeks.

Today in the United States will be published the revised estimate for U.S. GDP to 2 square. Despite the fact that preliminary results were positive, the change rate may be revised for the worse, so that the risks for the U.S. market at today's auction will certainly be present. Also, come out and data on unemployment and labor market, the report shows the U.S. Federal Reserve, still concerned about the U.S. government. But, nevertheless, bulls still can today to try to persuade the market situation in their favor.

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