Statistics did not help

Morning background for the Russian Market today turned out to be extremely negative. Thus, the U.S. stock markets on Thursday continued negative dynamics, major stock indexes declined on average by 3%. S P500 index closed lower by 3,1%. It is better to market the shares of technology companies, worse than the market - paper commodity and financial companies. The negative economic situation spread to Asian markets, where the average reduction of key indices in the morning is more than 2%. On commodity markets, Brent futures fell and traded near $ 72 a barrel, prices of basic metals groups show mixed dynamics.

As expected, the domestic site opened sufficiently serious decline. During the day the market tried to rebound, but after the release of statistics and the opening of overseas sites fall continued. In general it can be noted that the published statistics proved to be better than expected. For example, the U.S. unemployment rate in January fell to 9.7% from 10%, while analysts expected a small increase. Despite the positive job market U.S. markets opened lower, outright breaking the key milestone in the 10000 index DowJ. In general, in my opinion, at the moment investors should prepare for a prolonged correction of the market as a whole, 10-15% from current levels. The impetus for such a correction could be consolidating overseas indices below the key index and a possible drop in oil below $ 60 a barrel mark Brent.

One of the notable events of the outgoing week was the publication of “Severstal production results for the 4th quarter. Thus, the total steel output in October-December increased by 2%, output of rolled stock rose by 1%. Most business segments of the company recorded a moderate growth in production and a gradual shift towards the production of products with high added value. Also note the steady growth in sales prices on average by 10-20% Confident growth both in output and sales prices recorded the mining division of Severstal. Especially marked 16% rise in gold production and 41%-s” off the production of coking coal in the fourth quarter. We estimate published operational results of Severstal as a positive, the company continues to restore capacity utilization, and the main effect of this recovery, we expect to see in 2010. Another positive factor was the growth in sales prices of virtually all products Severstal. We expect that the market will respond positively to the operating statements of the company. Our fair valuation of shares of Severstal at $ 14.3, growth potential - 23%.

NBU: Negotiations between the shareholders of the bank “Forum” to increase the share capital are close to completion
Advertisement week was very volatile, and Russian stock indexes have shown reductions in its follow-up
Many market participants long awaited correction and embraced the movement of world indices as a sell signal
The unemployment rate could support the market, but the positive impact of statistics has been short-lived
Ukraine state debt grew by 59%
Greece to change laws in order to reduce the budget deficit
Russian indices finished volatile trading week of sharp decline, but a chance to rebound in the coming session is saved
Vice President of Marketing and Sales AvtoVAZ announced that the company plans to sell 100 thousand cars on the recycling program
In the medium term, the RTS index was stuck in the hallway 1300 -1500 points, today”s value as a 1412 pukto not encouraging