| USmarket Last data on US economy support investors’ optimism |
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11:47 03/02/2006 |
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On a background of optimistical comments of General Motors Head that the automobile giant is going to improve a situation of sales in Europe shares on Wall Street opened with growth. And at opening Google Inc. shares grew. The company informed that it had an opportunity for growth in a sphere of advertising sale.
Later ISM data were published, which became the main positive yesterday. We shall remind that value of ISM index of industrial activity, which at experts’ forecasts of growth up to 55.6 points, rose up to 56.7 points in February, 2006 from 54.8 in January. Thus the new orders index climbed up to 61.9 points in February from 58.0 points in January. The price index dipped to 62.5 points from 65.0 points. The employment index raised up to 55.0 points from 51.3 points. It is remarkable that growth of the index of industrial activity is noted for the first time since October of the last year. Experts assume that raising profits of the companies allow them to increase capital investments and to fill up inventories, increasing productivity to supply a great demand. These data assume the further economic growth, and also strengthen expectation that for inflation restraint the US FRS will proceed with a cycle of monetary policy firming. Let's remind that value of the index above 50 points means expansion in sector, below - turndown.
Another positive became data on incomes and expenses. So, the population incomes in the USA were up 0.7 % m/m in January, at the forecast of growth on 0.6 % m/m. And in December incomes were up 0.5 % m/m. Thus expenses were up 0.9 % in monthly calculation, at forecasts of growth on1 %, whereas a month earlier growth made 0.7 %. And the price index, reflecting personal consumption, was up 0.5 % in January after a zero growth in December. And the index, except for food and energy prices, was up 0.2 % m/m in January after growth on 0.1 % m/m in December. Let's remind that Core PCE is the main indicator of determination of FRS price pressure in the US economy.
However the situation in the energy market continues to contain the further growth of key stock indexes. We shall remind that oil quotations rose on Wednesday because of escalation of geopolitical intensity. Growth happened even despite good data on oil stocks in the USA which were up 1.6 million barrels to 328.3 million. And growth is the third straight month. Petroleum stocks were up 0.3 million barrels to 225.9 million. The reason of growth became new threats of Nigerian militant who are going to capture oil objects in the country. On Wednesday April futures for oil WTI were up 49 cents to $61.90 for barrel. And on today morning oil traded in area $62.30 for barrel. Yesterday Oil stocks in the USA were issued.
As a result Dow-Jones index of New York stock exchange was up 61.80 points and is at a level 11055.21. NASDAQ index was up 32.12 points and is at a level 2313.51. S&P 500 index was up10.63 points and is at a level 1291.29. And US 30-years state bond yield rose on 0.058 in comparison with the previous closing and makes 4.561.
We recommend keeping purchases of Dow-Jones index futures opened from a level 10690. The purposes of growth of the index hold good.
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