| US market Situation in energy market puts pressure on key indexes |
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11:47 03/24/2006 |
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Despite Adobe Systems Inc. pressure upon the technological sector shares on Wall Street opened with growth.
Positive labor market data supported key stock indexes. We shall remind that jobless claims in the USA made 302000 for a week by March, 18th, at the forecast 295000. And previous value was revised from 309000 up to 313000.
On the other hand, the market was also supported by increase of Yahoo Inc. investment level UBS. existing home sales in the USA were also unexpectedly positive and made 6.91 million for February, at the forecast of 6.40 million. And the previous value has been revised from 6.56 up to 6.57 million. As a result the sales volume was not only considerably above than the expected level, but also growth of the indicator is observed for the first time since September of the last year.
The market is under permanent pressure of a situation in energy market. So, on Thursday oil price hiked, having reached a maximum for the last one and a half month that was caused by fears of events in Nigeria and new signs of growth of fuel demand in the USA before summer. We shall remind that yesterday Italian oil company ENI informed that there were obstacles for deliveries of 200.000 barrels a day from a field in Nigeria. Experts notice that the rise in prices was also caused by a rise in petroleum price. As a result May futures for oil WTI rose up to $64.08 for barrel at the electronic tenders today at night. On results of the tenders on Thursday the quotation were closed at a level $63.91 for barrel.
As a result on anxiety of growth in oil market and practically absolute confidence of the next increase of rates at FED meeting on Tuesday that is confirmed by Interest-rate futures quotations, key stock indexes finished trade downwardly. Let's remind that futures show that the probability of rates rise up to 5 % in meeting on May, 10th makes 90 %.
As a result Dow-Jones index of New York stock exchange was down 47.14 points and was closed at a level 11270.29. NASDAQ index was down 3.20 points and is at a level 2300.15. S&P 500 index was down 3.37 points and is at a level 1301.67. And the US 30-years state bonds’ yield grew 0.029 in comparison with the previous closing and makes 4.755.
We recommend keeping purchases of Dow-Jones index futures. The purposes of growth of the index, mentioned earlier, hold good.
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