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Forex · News · USMarket

NEWS / USMarket

USmarket Key indexes began trading week in a narrow range

11:47 05/09/2006

Before FRS meeting on Wednesday investors are cautious very much, therefore the tenders on Wall Street on Monday opened with some decrease in the basic indexes.

Experts believe that moods in the market will most likely be equal expecting that FRS will raise the interest rate up to 5 % from 4.75 % on Wednesday.

Let's remind that the market’s participants hope that statements of FOMC members will help to throw light on the further monetary policy.

 

Many investors keep positive expectations that upon termination of FRS Head meeting opportunity of the end of the period of interest rates increase can be said about  that as a result will support the share market.

In economists’ opinion smooth devaluation of a rate of the American currency is simply necessary for correction of a situation with deficits (trade and budgetary). So, the weak dollar increases import prices that in its turn tends to increase foreign demand for American production and strengthens expansion of a national economy.

Therefore, taking into account that as the further weakness of the American currency is necessary for correction of a situation with structural disbalances in a national economy a hint that Fed is going to take a pause in a cycle of interest rates increase, can be kept.

However, at the same time experts suppose that Federal Open Market Committee will prefer more peaceful expressions concerning rates to avoid agiotage dollar sales.

 

Except for this indexes were also supported by growing papers Apple Computer Inc.,  which grew 1.6 % up to $73.05 after the High court of London decided that the company is not responsible for violation of trademark against company Apple Corps, which belongs to the Beatles group.

 

It is necessary to notice that consolidation of key share indexes happens on a background proceeding ascending rally of "a yellow metal". We shall remind that on Monday at the European tenders the gold price updated its 25-years maximum on a background of dollar easing at active purchases of the Japanese investors. So, spot cost of troy ounce of gold in London rose up to $684.70. Silver fell in price to $13.82 for ounce against $13.91 in New York.

Experts forecast that before the further growth gold can reach a following record level of $700 for ounce. And the platinum price on a background of growth of the bull moods in this market, has reached a new record level, having risen up to a level of $1.189 for ounce from $1.178 in New York, and the palladium grew up to $377 for ounce before falling to $375 against $370 in the American market on Friday.

 

As a result Dow-Jones index of New York stock exchange was up 6.80 points and was closed at a level 11584.54. NASDAQ index was up 2.42 points and is at a level 2344.99. S&P 500 index was down 1.10 point and is at a level 1324.66.

And 30-year US Treasury notes’ yield dipped 0.009 in comparison with the previous closing and makes 5.186.

 

As a result we still recommend to wait for descending correction of key indexes. Only after that there are possible new purchases of futures for Dow-Jones and S&P 500 indexes.

 

 

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