USmarket Despite oil quotations’ growth key indexes remain steady
11:47 03/14/2006

Supported by statements of San Francisco FRB Head Janet L. Yellen shares on Wall Street opened with growth on Monday. We shall remind that Yellen was for FRS to accept an official target level of long-term inflation for increase of efficiency of a monetary policy.

 

Besides she has warned that decisions on the further interest rates increase in the USA should be made extremely accurately as too high level of rates can affect negatively economic growth.

This fact has given investors’ optimism in estimation of a situation.

 

The market has also been maintained by news about new bargains in sphere of mergers and acquisitions. So, McClatchy declared on Monday about its intention to purchase Knight-Ridder for $4.5 billion, and Capital One Financial company declared about purchase of North Fork Bancorp for $14.6 billion.

 

And Apple Computer Inc. papers rose in the price on 4 % after Citigroup raised the estimation of the technological company.

 

The expert Tom Shrader from Stifel Nicolaus Capital Markets notices " M&A are always positive, as the market consider it as the factor of the companies’ underestimation".

 

And the factor of pressure upon key stock indexes became renewal of growth of oil quotations. We shall remind that the reason were fears of breaks in oil deliveries.

Thus permanent influences on the oil market keeps rendering the uncertainty of a situation around Iran, and also the criminatory statement of the US president Bush that Iran plays its game in Iraq.

After that statement April futures for oil WTI hiked on 3 % up to $61.77 for barrel, and April futures for petroleum were up 3.3 % at once to $1.7433 for gallon.

 

As a result the stock exchange of the USA was closed on Monday with little change of the basic indexes. Expectations of possible increase of rates and new growth of oil quotations continue to put pressure upon the market.

As a result Dow-Jones index of New York stock exchange was down 0.32 point and was closed at a level 11076.02. NASDAQ index was up 4.99 points and is at a level 2267.03. S&P 500 index was up 2.55 points and is at a level 1284.13.

And the US 30-years state bonds yield rose on 0.026 in comparison with the previous closing and makes 4.768.

 

Despite the pressure of the energy market we recommend to keep purchases of Dow Jones index futures. The purposes of growth of the index hold good.


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