Financial News and Economical Crisis

Stock Exchange failed to hold on to peak, and late last week, under pressure from disappointing statistics on consumer confidence, as well as the growing credit risk, market swept corrective wave. Once again the focus of investors got problems with the duty of Greece, which today will be discussed in Europe, becoming the reason for the growth of demand for protective assets and the dollar. Commodity markets remain under pressure as because of doubts about the fundamental justification for current quotes of raw materials (especially in the context of the report EIA), and the strengthening U.S. currency. Oil in the morning was worth only $ 76.7 per barrel. Negative external background and the lack of meaningful statistic data in the coming days, likely will keep investors away from risky investments that will lead to profit-taking on the stock markets. The domestic market in the beginning of the new week may well fall back to the levels of 1430/40 forth on MICEX. However, if a positive resolution of the Greek problem, the growth of short-term growth could resume.

U.S. indexes lost about 1% in Friday trading, amid intensified capital flowing into defensive assets. The Dow lost 0.94%, falling to 10,609.65 subsection, SP - 1,08%, falling to 1,136.03 p. Since the beginning of trades under pressure proved to the banking sector. Despite the fact that reporting JP Morgan for the last quarter was better than expected, the head of Bank James Dimon noted that the return on capital, as well as the bank”s profit would be higher. Moreover, against the financial sector as a whole played a discussion of a new tax on banks receiving state aid, which was proposed by U.S. President Barack Obama.

The improvement in the industry, recorded in January, the New York Fed (the index Empire State Manufacturing), as well as statistics on inflation (0.1%) had no significant effect on the market. Meanwhile, the slowdown in the growth index of consumer sentiment, caused concern among the players for the further recovery of consumption in the country, which has become one of the reasons for the correction on today”s Asian trading.

With the beginning of the week for stock indices continued to remain under pressure as a result a series of weak makrostatistiki, published late last week, and jumped on the background of the Greek theme of credit risks. In addition to all this morning with worsening economic expectations contributed words of the South Korean finance minister, who said that it is too early to be optimistic with regard to economic recovery. As a result, capital continued to flow into the protective assets, contributing to the strengthening dollar and a further depreciation of commodity assets. MSCI Asia Pacific Index lost this morning with 0,6%.

We believe that the negative external background, domestic indexes can lose about 1-1,5% in the first half of the day. In the absence of The data are important, as well as in connection with a public holiday in the U.S. (Martin Luther King Day), today”s auction will be held under the dictation of Europe. We do not exclude that after a weak opening appeared in Asia, signs of recovery in metals will be developed that combined with the resolution of problems of the Greek market can provide support for short-term growth, limiting the potential loss indices.

Total current week to poor macroeconomic publications, the focus is likely to be given to corporate accountability, among which is to provide Citigroup (January 19); ConocoPhillips, IBM and Bank of America (January 20); Google (21 January), GE (January 22).

Bank “Union” out of the readjustment procedure and returns to Oleg Deripaska
Alexey Kudrin: Program efficiency of budgetary expenditure will be approved before April 1, 2010
Forex: euro is under pressure from investors again worried the Greek question
America closed lower, Asia traded mostly down
Today in the U.S. holiday
Analytical review of the Forex market a week from 11 to 15 January
Kommersant: The National Bank introduced a new classification of credit institutions
Oil and gas today will remain under pressure, in less liquid securities are not excluded selective growth of quotations
Possibility of the outcome devaluation of the ruble in the coming weeks remains