May 4th, 2010
The Russian stock market on Friday, quickly retreated down and the RTS index lost 3.55%, falling to 1,411.14, while the MICEX index lost 2.88% to 1,355.64. The situation on foreign markets is haunted by the Russian players. Problems of the European powers (Spain, Greece, Portugal and Italy) signal that the world economy is far from recovery. Besides macroeconomic data provide indirect confirmation of this, as in Germany, industrial production unexpectedly dropped, and the U.S. labor market remains difficult situation, because the unemployment rate fell against the backdrop of declining employment outside of agriculture. The dollar continues to exert pressure as the stock and commodity platforms. As a result of serious sales were observed in the papers of steel and oil companies. In general, the negative trend was observed in all sectors, in pursuit of the other Friday off VTB, which in the previous session, rose against the general trend. Nevertheless, and this time turned out to be paper, heading into the top, so the shares of Rostelecom was demand after reports that the paper company to be placed in the western areas after the consolidation of the assets on the basis of Svyazinvest Rostelecom. European stocks Friday continued the site to lose weight. In the foreground are still difficulties associated with the state debt and budget deficits in countries like Italy, Portugal, Spain and Greece which make a major contribution (about a quarter) in the value of the euro area GDP. In addition, statistics are not provided grounds for optimism that has added to the sales markets. Reports of companies and their predictions were largely negative, adding more negative emotions. Desheveyuschee raw materials has led to the collapse of securities of mining and energy companies.
U.S. stock markets managed during the bidding to break the negative opening, closing is not a big increase. The situation with the debts of European states and by statistical data indicated the negative start to the day, but after the data on consumer credit, which have demonstrated positive dynamics, shopping has increased, allowing the index to move in the positive zone. On the positive side also became known that the number of people employed on temporary employment contracts has increased as the average workweek, which points to some recovery in the labor market.
Asian stock exchanges today, mostly falling, playing the events of Friday trading in the U.S. and Europe. Part of the market is trying to get into the positive zone thanks batted prices for raw materials.
Russian shares open slightly decrease, while the MICEX index back down to 1345/1340. Now attention is focused on the bidders to events in Europe, news from there can play a decisive role. The dollar continues to strengthen, which will overshadow sites. Market support may have made at the meeting of G7 statements in support of the economy of European countries, as well as new anti-crisis measures. Perhaps that is against this background market will bounce a bit but the growth prospects look dim yet. In the case of rebound goal at the top of the MICEX index - 1370.
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