USmarket Under pressure of last events on energy carriers’ market indexes down
11:47 01/13/2006

Strong deterrent for the further growth of key stock indexes are still increasing oil quotations and investors’ concern that the growing oil prices can lead to the further rates slowdown of profit rises of the American companies.

Let's remind that in spite of the fact that oil quotations have gone down a little today, experts wait for oil will rise in price expecting reduction of raw material supply from Iran and Nigeria.

The price is close to the maximal values of three last months. The market’s players are afraid of escalation of intensity concerning Iran. 5 % of a world oil production fall to its [ Iran’s]  share.

Besides Royal Dutch Shell has reduced on 10 % oil extracting in Nigeria because of destabilization of a situation in the country.

On NYMEX on January, 12th cost of oil futures with delivery in February remained at a level of the previous tenders - $63.94 per a barrel. And today oil has traded in area of $63.70 per a barrel.

"It seems that Iran does not pay attention to pressure of the world community and goes to conflict with the West. It can lead potentially to a high rise in oil prices", - Phill Flynn from Alaron Trading has noted.

As a result on a background of these alarms, shares in the USA opened in a minus on Thursday.

Thus the other factor of pressure became reduction of ratings of shares by the broker companies of such components of Dow index as Coca-Cola Co and JPMorgan Chase & Co at the electronic tenders Inet.

 

And warnings of profit of the third in size American electronics seller RadioShack Corp and the investment company American Home Mortgage Inc., specializing in the real estate investments, can cause even more anxiety about corporate profits.

It is necessary to remind that in January rally of a current year Dow index has already grown on 3 %, NASDAQ on 5.7 %, and S&P 500 index has risen on 3.7%.

Indexes have been sustained by the data published on Thursday. So, the US trade deficit balance reduced up to $64.2 billion in November and experts predicted reduction of trade balance red ink only up to $66.1 billion.

As a result the indicator has been not only noticeably better than the expected level, but also its previous value has been revised to improvement.

Experts assume that, despite November import cutting after the oil prices fell from peaks, on results of 2005 the foreign trade deficiency will most likely achieve a historical top, making up more than $700 billion.

And, according to analysts’ forecasts and the American consumers’ great demand of goods from such countries as China and Mexico, deficiency growth can proceed in 2006.

Thus import price index to the USA made -0.2 % for December, the previous value -1.8 %. The export price index to the USA made +0.1 % for December, the previous value -0.7 %.

 

Among the reasons of deficiency growth Global Insight Inc. experts say that "the US economy develops more quickly than in Europe or Japan, and it is the main driver of deficiency growth".

 

As a result Dow-Jones index of New York stock exchange has fallen on 82.12 points and is at a level 10961.32. NASDAQ index has dropped on 14.24 points and is at a level 2317.12. S&P 500 index has dipped 8.16 points and is at a level 1286.02.

Profitability of the US state obligations for 30 years has fallen on 0.048 in comparison with the previous closing and makes up 4.591.

We recommend keeping purchases of Dow-Jones index futures, opened from 10690 level.


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