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Forex · News · USMarket

NEWS / USMarket

USmarket Before long days off key indexes have remained in a range

11:47 01/16/2006

Today is the day off in the USA, the financial markets do not work. On Friday, on a background of the publication of the last statistic data about volume of retail sales and inflation in industrial sector in the USA in December and on results of year, the shares on Wall Street opened with little growth.

 

Tyco International and Lucent Technologies Inc. shares decreased more significantly than the others after these companies have lowered forecasts of profits.

"It will be more difficult for companies to improve profits, - the analyst at Insight Investment Management Phillip Barleggs believes. - The forecast on the market is quite uncertain".

 

Let's notice that investors are still worried about inflation, and this concern strengthening was promoted by Friday PPI data in the USA.

Let's remind that the producer price index in the USA grew0.9 % m/m in December. And experts forecasted increase on 0.4 %. In November the producer prices fell on 0.7 % that was the promptest dip since April, 2003.

The gain of the producer prices made 5.4 % in December in comparison with the same month of the last year against 4.9 % expected by experts.

The main cause of inflation in industrial sector became increase of the fuel prices; expenses except for cost of energy carriers and foodstuffs have grown less considerably than it was expected.

Thus Core PPI has come up only on 0.1 %, against the analysts’ forecast of  +0.2 %. A month earlier the given indicator also rose on 0.1 %. On results of 2005 the increase of the indicator made 1.7 % that is below 2.3 % recorded in 2004.

Let's also remind that experts supposed a gain of the prices on 1.9 %, thus, gold became less correlated with the American currency rate in comparison with the previous years.

 

Besides the oil prices keep being the deterrent for the share market. We shall remind that because of fears of reduction of raw material supply from Nigeria, oil quotations have again opened with growth from the beginning of week trade.

The reason was the information that Royal Dutch Shell evacuated its all personnel from this country because of the armed conflicts.

The other factor, pushing growth of the fuel price, became the anxiety concerning a situation around Iran. Some experts do not exclude force influence from the USA on the country - the fourth in “black gold” supply.

 

The price for the February future for WTI oil on Friday decreased on $0.23. And today trade on NYMEX is closed because of a holiday in the USA.

And today at the tenders in London Brent oil has traded in area of $62.45.

 

As a result Dow-Jones index of New York stock exchange has fallen on 2.49 points and is at a level 10959.87. NASDAQ index has grown on 0.35 point and is at a level 2317.04. S&P 500 index has risen on 1.55 points and is at a level 1287.61.

Profitability of the US state obligations for 30 years has dropped on 0.066 in comparison with the previous closing and makes up 4.525.

 

As a result we suggest keeping purchases of Dow-Jones index futures, opened at 10690 level. The purposes, mentioned earlier by us, also hold good.

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