The euro / US presses on the position of commodity contracts on the stock exchange in London, it increases the number of sales in the stock market

Written by admin on February 12th, 2010

uncertainty reduced force "bulls"

On Wednesday, only a short time had a positive place in our markets. MICEX index has once again updated the annual maximum (§ 1491.26). Moreover, this growth was due to strengthening of the position of our oil market (0.9% Lukoil and Surgutneftegaz 0,4%). A slight cooling of temperatures in the European markets, sluggish trading on currency, led to the fact that from 12 o"clock our stock indicators moved in the regime of "stand by", waiting for release day reporting from Bank of America and Wells Fargo.

The weakening of the euro against the dollar (1.4155) presses on the position of commodity contracts on the stock exchange in London: copper -1,6% -1,8% nickel, oil, Brent -1,3%; gold -0, 8%. And this, in turn, increases all sellers in the stock market.

In general we can say that no positive today, but grew up on the eve of the U.S. indices, not observed. According to today"s speaking notes ECB board member Juergen Stark, the European banks have signs of deterioration in credit quality, which may indicate a new wave of write-offs, and the euro zone"s economic recovery is likely to be gradual, uneven, and the economic outlook remains highly uncertain. If we add to this potential increase in outstanding loans to China by the end of the year at 16-18%, the situation on the markets by the summer has already s1000een not as rosy as in January.

To complete the picture we lack only the negative in the States, which investors have long ignored: a downturn in the housing market, tightening requirements for borrowers and raising the rates. By the way, today in the U.S. went 16-30 in the December data on the number of new buildings (estimate: 574 thousand) and construction permits (estimate: 0,580 million). I think they will please the stock bull. In other words, the market is maturing a good correction, needed only bright news.

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