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Forex · News · USMarket

NEWS / USMarket

USmarket On Friday key stock indexes continued trade in a range

11:47 08/28/2006

On a background of uncertainty around FOMC following steps and the statistical data confirming sharper delay of economic growth than it was expected earlier, key stock indexes continued trade in ranges on Friday, on August, 25th.

 

Having started trading session from sharp decrease, then indexes again directed upward, and finished session within the limits of earlier planned ranges.

 

The factor of pressure upon the market was the situation in energy market. We shall remind that on a background of information about a tropical storm in the Caribbean Sea, which is a potential threat to oil production in Gulf of Mexico, oil futures were closed with increase.

As a result October contract in NYMEX was closed at a mark $71,51 for barrel, having rolled away from a maximum of trading session of $73,75.

The contract added 15 cents as a result of exchange session and 41 cents above closing of the last weeks, made $72,10.

 

On Friday drop in hares} of "blue chips" became especially appreciable. So, General Motors papers lost $0.55, having closed at a mark $29.33, and Boeing shares fell in price $1.31 up to a level $73.93.

McDonald's papers also showed decline, having decreased $0.65, and having finished the day at a level $35.23.

 

Indexes were supported by growing Intel shares, added $0.34 up to a level $18.90. Alcoa papers also added in the price and rose $0.26 up to $28.93. Besides Merck shares raised, having grown $0.38 up to $40.44.

 

However the main event on Friday became statement of FRS Head Ben Bernanke, in whose speech investors expected to hear hints that after last statistics, the key rate remains without change. But, despite these expectations, Bernanke kept to the subject of global integration, and told nothing essential to the market concerning a monetary policy.

Besides Bernanke noted in his speech that unprecedented rates of globalization of economic can lead to increase in vital standards and reduce a level of poverty, but geopolitical intensity and protectionism can bring these results to nothing.

 

As a result Dow-Jones index of New York stock exchange was down 7.76 points and is at a level 11296.70. NASDAQ index was up 5.70 points and is at a level 2142.81. S&P 500 index rose 0.50 point and is at a level 1296.56.

And 30-years US Treasury notes’ yield fell 0.009 in comparison with the previous closing and makes 4.930.

 

Our last recommendations still hold good: after the end of descending correction it is necessary to buy futures for Dow-Jones and S&P 500 indexes from the mentioned levels.

 

 

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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
EUR/GBP0.71920.7194
EUR/CHF1.65951.6599
EUR/JPY162.7900162.8300
GBP/JPY226.3000226.3600
GBP/CHF2.30702.3080
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