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Forex · News · USMarket

NEWS / USMarket

USmarket Drop in oil quotations supports growth of stock indexes

18:21 09/06/2006

After long days off in the USA the stock market opened with decrease on Tuesday. We shall remind that yesterday in the USA and in Canada there was a day off therefore the financial markets in these countries did not work.

The market was under pressure of decrease in Microsoft shares, which lost 17 cents, having decreased up to $25,68. The reason of falling of papers became the statement of Japanese Sony about reduction of the prices on PlayStation 2, which competed with the similar device Xbox by Microsoft.

Also, after news that the largest world producer of semiconductors Intel prepares for reduction of 10 000 employees, the company’s shares started to decrease.

Besides on a background of decrease in oil quotations, Exxon Mobil papers lose in the price, which, on results of trading session, were down 37 cents up to $67.73.

And the main event for oil traders yesterday became news that Chevron Corp. could find out a significant oil field in Gulf of Mexico.

Let's remind that Chevron company informed yesterday that made successfully chisel works in a gulf, and assumed that in Gulf of Mexico there are probably oil stocks equal to a quarter of production in the USA.

This information was especially positively apprehended by those investors who worry about strong dependence of the US economy on foreign oil.

Besides in experts’ opinion falling of oil prices will promote delay of cycles of monetary policy firming from FRS, and others world Central Banks.

So, Bear Stearns economists, specifying that oil quotations pressed through a mark of $70 for barrel, point out that reduction of oil prices will reduce pressure upon economic growth, and than the prices will fall more strongly, it will affect especially positively inflationary expectations.

As a result Dow-Jones index of New York stock exchange was up 3.68 points and is at a level 11467.83. NASDAQ index grew 11.44 points and is at a level 2204.60. S&P 500 index rose 2.41 points and is at a level 1313.42.

And 30-years US Treasury notes’ yield grew 0.057 in comparison with the previous closing and makes 4.930.

We recommend, being outside the market to wait for descending correction of key indexes. After its end there are possible long-term purchases of indexes.

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TickerBidAsk
USD/CHF1.15601.1562
GBP/USD1.99541.9956
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EUR/USD1.43521.4354
AUD/USD0.85770.8581
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