Financial News and Economical Crisis

Inertia selling, which originated in frustration Thursday at the optimistic market participants on Friday morning, have been developed. The reason for this was the negative closing trades in the U.S., as well as the decision of the Reserve Bank of India to follow the example of its northeastern neighbor, and to raise the allowance reserve for banks. A negative reaction to the fact that instead of the expected increase of 50 basis points, lights stayed on 75 b. subsection, prompting fears of a sharp deceleration of the third Asian economy than in the past been discounted in current prices. The newly emerged, and echoes the tense situation with sovereign debt in the euro zone - the bidders had to take into account the increased CDS in Greece, as well as preventing the agency Moody”s, that Portugal could lose its Aa2 rating to the case in 2011 did not mend their affairs with public finance. On the negative mood disposed by increased attraction to risk-aversion, which has resulted in the strengthening of months until the new maximum dollar against the euro, which threatened to disrupt the well-established stability on the key for Russia”s stock market the oil market.

Nonetheless, most market participants to keep in mind the technical picture of the U.S. stock market, where stock indexes have fallen on key support, from which there is a continuing until very favorable liquidity conditions, we can expect one more hike up at least The technical rebound. Trigger for this could serve as optimistic data on the dynamics of the American economy in the IV quarter of 2009, according to forecasts that few doubted. For this reason, the continuation of the morning selling the most liquid securities not been enthusiastic supporters that helped to stabilize the market above the minimum, which formed in the first hour of trading, and reducing volatility to the output statistics.

The publication of these data showed the validity of such hopes. U.S. GDP in the IV quarter grew by 5.7% (maximum of 2003), substantially exceeding the average forecast of the market (4.7%). The main contribution (3.4 PP) has made this achievement statistics for stocks in the beginning of a cycle of replenishment deserted warehouses. Pleasant impression stimulated an increase in investment, mainly in equipment and software. After completion of the program “cash for avtohlam” contribution of consumer spending, dropped to 2%, however, it also was higher than forecasts of experts.

To the fact that such strong data, together with an increase in the index of personal consumption expenditure (1.4% y /y) above progozov (1.3% y /y) can bring the moment of tightening monetary policy the Fed, market participants have not been given a some attention. As a result, in all markets and Russia”s stock also returned the enthusiasm to buy. Thereafter, it increased the excellent data on business activity index of purchasing managers in Chicago (61.5 against expectations of 58.7), as well as more optimistic than the consensus forecast of 73 p. index of consumer confidence from the University of Michigan P. 74.4

Analytics - the outcome of the day

Energy, World Stock Market, Currency, Weather …

Opening of the American stock indexes are now expected to top
Lose in a price rally metallurgical companies: NLMK (-3.9%), Severstal (-2.9%), MMC Norilsk Nickel (-1.6%)
At 16.00 Moscow time the price index value RGBI was 130.71, compared with the closing of Friday, it rose by 0.031%
Annual general meeting of shareholders “Tatneft” will be held June 25 in Almetyevsk
In 2010, TNK-BP will focus on the Yamal, Uvat and Verkhnechonsk projects
Proceeds of the KLA in 2009 grew 18% to 114 billion rubles
On Monday morning prices on the London Metal Exchange are stable
Euro still falling