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Forex · News · USMarket

NEWS / USMarket

USmarket Key stock indexes are steady, but probability of correction is not excluded

11:47 02/23/2006

After the publication of data on consumer inflation, which were above economists’ forecasts, shares on Wall Street opened varied on Wednesday.

We shall remind that, according to yesterday's data, the consumer price index in the USA in January was up 0.7 % in monthly calculation, thus a core CPI - excluding the prices for food and energy – was up 0.2 % m/m in January.

Experts forecast that CPI in January would be up 0.5 % in monthly calculation, and core CPI - up 0.2 %.

And year over year in January prices in the USA were up 4.0 %, and except for the prices for energy and food - up 2.1 %.

Thus seasonably adjusted real incomes of the US population were down 0.2 % m/m in January as well as the economists expected.

 

Though these data have confirmed expectations of continuation of a cycle of the US FRS monetary policy firming, however the market’s reaction was insignificant. So, after some attempts stock indexes could not overcome key resistance, and returned to old trading ranges after a short struggle.

 

Key stock indexes were supported by the data of drop in oil prices, which becomes cheaper expecting rise of oil stocks in the USA. We shall remind that oil quotations decreased on Wednesday after hike the last days on a background of expectations of rise of oil stocks in the USA by investors.

The volume of stocks is high, last week these data led to falling of the prices. The report will be published today at 18.30 Moscow time., it was transferred because of the day off in the USA.

April futures for oil WTI were down $1.73, or 2.8 % to $61.01 for barrel. Yesterday the prices reached bottoms at $60.52 for barrel, and today oil has traded in area of $60.65.

FOMC "minutes" together with today's data say about the further increase of rates that is unfavorable for the market", - Mike O’Hear from Lehman Brothers told. However drop in oil prices on after powerful growth yesterday was estimated by investors positively.

As a result Dow-Jones index of New York stock exchange was up 62.91 points and is at a level 11131.97. NASDAQ index was up 19.40 points and is at a level 2282.36. S&P 500 index was up 8.64 points and is at a level 1291.68.

Profitability of the US state obligations for 30 years was down 0.046 in comparison with the previous closing and makes 4.481.

 

As a result we suggest keeping remained opened purchases of Dow-Jones index futures after yesterday's closing at a level of 11122. The purposes of growth of the index are former.

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