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Forex · News · USMarket

NEWS / USMarket

USmarket Key share indexes keep up

11:47 01/10/2006

After powerful pick-up of key indexes on a background of probability of the end of a cycle of the US FRS rate increase, investors are still optimistical.

Thus investors have not reacted to yesterday publication of the consumer credit data in the USA for November. We shall remind that value of the indicator made -0.6 billion dollars, the forecast +4.8 billion dollars.

Thus the previous value is revised from -7.2 up to-8.4 billion dollars.

Today investors will most likely pay attention to the publication of wholesale trade data in the USA for November. The forecast is equal to +0.5 %, and the previous value +0.2 %.

But a situation in the oil market is still one of the major factors for the stock market. So, on a background of warming in northeast of the USA, the oil price has dropped on a background of falling of fuel consumption.

Analysts of the fuel market predict reduction in demand for mineral oil on 36 % below an average indicator this week.

As a result on NYMEX on January, 9th cost of oil futures with delivery in February dipped on 1.1 %, or on $0.71 - up to $63.50 per a barrel.

And on today morning at the electronic tenders oil is in area of $63.20 for barrel.

Thus yesterday International Monetary Fund Head Rodrigo Rato expressed his concern of a situation in the oil market. He has said that today oil prices represent threat to world economic development and consequences of a hike of price for "black oil" will show fully in future.

At the end of the meeting of Central Banks Heads of G10 Rodrigo Rato said: "We will feel influence of the oil prices. Naturally, we consider the oil prices as a threat. There is a difficult situation on the oil market".

"In medium-term term prospect we see a precise necessity for the largest economic powers to arrange actions concerning global imbalances. I mean the USA, Europe and China, and also the countries-exporters of oil with big proficiencies", - Rato told.

"I think that the struggle with imbalances should be made together", - Rodrigo Rato summed up.

As a result the American shares continued growth at the tenders on Monday. For the first time for 4.5 years Dow index has risen above a level of 11000 points. It is a psychological level, trade above which can raise investors’ optimism considerably.

Among Dow components, having become leaders of growth, are papers of automobile conglomerate General Motors, which have grown on 7.7 % to 22.41 after Goldman Sachs increased its rating estimation.

Prudential has raised a rating for JPMorgan Chase shares and Merrill Lynch papers up to a level "above the market". As a result JPMorgan share have risen in price on 1.6 % to 40.67, and Merrill Lynch shares have grown on 1.4 % to 69.68, also supporting Dow index.

And the leader of losses among blue markers are International Business Machines Corp. shares which have fallen on 1.4 % to 83.73 after JPMorgan lowered its rating from a level "above the market" up to a “neutral” level.

As a result Dow-Jones index of New York stock exchange has grown on 52.59 points and was closed at a level 11011.90. NASDAQ index has come up on 13.07 points and is at a level 2318.69. S&P 500 index has risen on 4.70 points and is at a level 1290.15.

Profitability of the US state obligations for 30 years has not changed in comparison with the previous closing and makes up 4.565.

As a result, share indexes will most likely, remain steady till the publication of the US trade balance data, planned on Thursday, and being a major publication of current week.

While, on a background of gamble about probability of end of a cycle of toughening FRS monetary policy, key indexes remain stable.

We recommend keeping opened before purchase of Dow-Jones index futures. All the purposes, mentioned earlier, also hold good.

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