It is likely that further strengthening of the dollar will constrain the growth of equity markets and adversely affect the oil

Written by admin on March 3rd, 2010

Strong statistics on U.S. GDP had a positive impact on the markets. In IV quarter, according to preliminary data, GDP grew by 5.7%, expected 4.7%. Growing stock markets and oil, the reaction is very positive, the players do not pay attention to the rising dollar. But do not forget that in the III quarter of a preliminary assessment showed an increase of 3.6%, and final figures were at 2.2%. European markets added about 1.5%, U.S. futures rise nearly 1% in Europe to leaders of growth stocks of banks and mining companies. Russia has been buying during the day lost about 1%, data from the U.S. allowed reverse the decline and get a plus. At 17:20 the MICEX index rising by 0.3%, RTS index at 0.44%. Trading volumes at the secondary level, 38 billion rubles. Better the market looks the most liquid securities, Gazprom increased by 1.4%, Sberbank by 1.3%. Also better than the market shares of Lukoil 0.7% and VTB 1.1%. Steel sector completely ignores the dynamics of the stocks of the largest mining company, yesterday, against a background of 3% reduction of the sector in London, we grew up today in front of declining, despite the growth in Europe. -1% NLMK, Severstal -0.9%, MMC Norilsk Nickel -0.9%. In the near future is very important, as will behave couple dollar /euro. It is likely that further strengthening of the dollar will constrain the growth of equity markets and adversely affect the oil. In this case, we see a further decline, including in our market.

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The rebound in Russia contributed to the market expectation of positive data on U.S. GDP, resulting in closed "shorts"
When oil and the U.S. stock market return in the January highs, we can see the long-awaited 1750 points on the RTS
If the remaining statistic data did not spoil the mood on the markets, you can expect a continuing positive trend until the end of the session

 

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