American stock market on Friday and the following week as a whole recorded a negative result

Written by admin on October 5th, 2009

U.S. stock market (SP 500 -0.45%) following Friday and the week as a whole recorded a negative result. Inadequate data on the reduction of jobs outside the agricultural sector and production orders, which are again reminded that economic recovery will not be stable, such a predetermined outcome. After opening with a negative price gap at the closure of shorts and raised expectations that the Fed will maintain a very liberal monetary policy for a longer period than previously expected, the market recovered some losses, then went into the volatile sideways trend.

Regarding the situation on the labor market at the weekend his point of view gave the former Fed Chairman Alan Greenspan. The unemployment rate, in his opinion in the coming months will reach 10% and only after a certain period of time begins to return to their previous values. The fact that the rising unemployment poses a serious threat, understands and U.S. Treasury Secretary Timothy Geithner, who is part of the ongoing summit of finance ministers and heads of central banks G7, said that despite the apparent improvement in the economy, to rush with the winding down of incentives has not worth. This statement got into the final communiqué of the summit. Also in Istanbul, touched the theme of exchange rates. Lack of passage that the G7 concerned about the weak U.S. dollar, forex on Monday was interpreted in favor of opening it for short positions. In relation to the Japanese yen the dollar, by contrast, is growing, owing to the Finance Minister of this country Hirohisy Fujii, who did not rule for intervention.

However, the Asian stock market (Nikkei 225 -0.6%, Hang Seng -0.17%, China's share platforms are closed due to national holidays), the weakening yen has attracted less attention than the close of trading on Wall Street and last published statistics from the U.S.. Moderately pessimistic tone, the mood of investors gave the professor of economics at New York University's Nouriel Roubini, who said that markets in the IV quarter of this year or next quarter, I will negotiate a restoration of a U-shaped scenario that reflect the correction.

Futures on the U.S. indices (SP 500 0.32%) are in the black. Quotes commodity contracts are on the same marks, as well as at the closing of Russia's stock market the previous week. Prices for WTI crude oil grades are consolidated below the slats in $ 70/barr.

Russia will not allow bilateral loan to Belarus and Ukraine
National Bank has received a positive result
Greek Premier Karamanlis resigned
Speculative recommendation on shares of Polyus Gold , Gazprom, Lukoil, Sberbank and VTB
In the case of retaining the level of 1130 points on the MICEX index, the new boundaries of local resistance could be 1230-1130 points
It is possible that in the course of Russia's trading, investors will return to purchase, considering last Friday's drop excessive
UK Finam Management has summed up results of the third quarter
The dollar on Friday was unable to realize the advantages of the traditional safe currencies
Markets offer some hope for the statements of official representatives of the U.S. monetary authorities

 

Leave a Comment