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Forex · News · USMarket

NEWS / USMarket

USmarket Key stock indexes still trade in a range…

11:47 04/07/2006

Before data of the US labor market survey in March shares on Wall Street opened with the moderate growth. Another focus of investors’ attention was a situation with retail sales.

Let's remind that experts at Jefferies and Co. 3M Co. raised yesterday the forecast of sales and profit in the first quarter on a background of improvement of a business situation.

So, sales in American shops Wal-Mart Stores Inc. were up 1.4 % in March. Thus economists forecast growth of sales on 1.6 %, experts forecast growth on 1.3 %.

 

Another factor of pressure upon the stock exchange of the USA still is a situation in oil market. So, oil prices decreased a little after an establishment of 2 monthly maximum on a background of downturn of petroleum stocks in the USA. The main reason of decrease, in opinion of experts, is falling of petroleum prices.

Cost of May oil futures for oil WTI on NYMEX on April, 6th was up $0.87 - up to $67.94 for barrel, and on today morning at the electronic tenders oil is at a level of $67.60.

 

Besides growth of precious metals, increase of a rate of raw currencies against the dollar influence negatively on key stock indexes.

So, the gold rate has grown from a level 587.10 up to 596.40 dollars for ounce, maximal one for last 25 years, and the silver rate has risen from a mark 11.68 to 12.12, the top since 1984.

 

Thus the indexes have been supported by data on jobless claims in the USA for a week by April, 1st, which were equal to 299 thousand at the forecast 305 thousand, thus previous value has been revised from 302000 to 304000.

As a result the indicator was not only better than the forecast, but also hit a low since February, 18th. Economists notice that drop in jobless claims is observed the third week successively.

 

The market is nervous because of rumors that U.S. Treasury Secretary John Snow will leave his post in 1-2 months. We shall remind that Snow has headed the Department since 2002, having replaced Paul O’Neil in this post.

Undisclosed sources from the White House have declared that Bush's administration would like the new Treasury Secretary to be more active in voters’ opinion before congressional elections in November. New Treasury Secretary can strengthen positions of the Republican party.

 

As a result Dow-Jones index of New York stock exchange fell 23.05 points and was closed at a level 11216.50. NASDAQ index was up 1.42 points and is at a level 2361.17. S&P 500 index was down 2.52 points and is at a level 1309.04.

And 30-years U.S. Treasury notes’ yield was up 0.067 in comparison with the previous closing and makes 4.960.

 

We recommend while remaining outside of the market. In the given situation it is impossible to exclude realizations of descending correction of key stock indexes.

 

 

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19/12 21.15
TickerBidAsk
USD/CHF1.15601.1562
GBP/USD1.99541.9956
USD/JPY113.4100113.4300
EUR/USD1.43521.4354
AUD/USD0.85770.8581
USD/CAD1.00521.0056
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EUR/CHF1.65951.6599
EUR/JPY162.7900162.8300
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GBP/CHF2.30702.3080
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