Financial News and Economical Crisis

review the oil market for 29.01.10

Dynamics
Quotes of the oil market on Friday 29 January to results of the auctions closed with a decrease in value against the background of strengthening U.S. dollar on the foreign exchange market, FOREX, and also because of the negative dynamics of equity markets and adjacent areas.

At the New York Stock Exchange NYMEH the March futures price of U.S. crude fell by 0.75, or 1.0%, and its price was 72.89 dollars per barrel.

The exchange ICE in London, Brent crude futures price fell 0.67, or 0.1%, to 71.46 dollars per barrel.

Causes
On Friday, Jan. 29 quotes on the market of “black gold” closed with a decrease in price under the following factors: 1 - strengthening of the dollar in the FOREX market against the backdrop of economic output makrostatistiki and news (GDP growth in the U.S. for 4 — First quarter was 5.7% while the forecast 4.6%), 2 - negative dynamics of the stock sites, where the major U.S. stock indices closed in the red zone (Dow Jones industrial average - 10067.33 (-53.13, or -0.52%), Nasdaq Composite - 2147.35 (-31.65 or -1.45%), SP 500 - 1073.87 (-10.66, or -0.98%)), 3 - reduction in adjacent markets, namely the drop in market prices of precious metals, 4 - on the eve of holidays, many investors chose to lock in profits some open positions that negatively impact on the oil quotations.

From the news it is worth noting that the “Transneft” has summed up results of the tender for selection of contractors for the construction of the second stage of the pipeline “Eastern Siberia - Pacific Ocean (ESPO-2): the winners of the four lots have become the company Stroitransgaz, Stroynovatsiya “,” Mezhregiontruboprovodstroy and Stroygazkonsalting. “Stroygazkonsalting will undertake work on site, which will be held in the same corridor with the gas pipeline from Khabarovsk to Vladivostok, which is now building Gazprom. As a result of tenders Transneft was able to save over one billion rubles. Contractors, in particular, have provided additional discounts.

What to expect?
Many analysts point to the fact that oil prices are still within the trading range of 70-80 dollars per barrel and may have potential for further growth. The close relationship between oil prices and U.S. dollar is expected to continue to set the tone for trading on the oil market.

Why worry?
The main negative factors in the oil market are U.S. dollar and the technical picture, namely, the psychological and technical level of $ 80 per barrel, which does not allow to pass higher oil prices, thereby encouraging market participants to lock in profits on the open long positions.

Overview of precious metals market for 29.01.10

Dynamics
On Friday, Jan. 29 quotes for gold and silver closed with a decrease in value against the background of strengthening U.S. dollar on the foreign exchange market, FOREX, and also because of the negative dynamics of neighboring markets and equity grounds, but later quotes almost completely restored the lost ground due to purchases on technical factors.

As a result of trading on the COMEX, division of the New York Mercantile Exchange (NYMEX), quotes gold futures dropped to 1.00 to U.S. $ 1083.80 per troy ounce, quotes, silver futures fell 2 cents to 16.19 dollars per ounce.

Causes
On Friday 29 January futures on precious metals have completed trades with a decrease in price under the following factors: 1 - strengthening of the dollar in the FOREX market against the backdrop of economic makrostatistiki and news (the U.S. government reported that U.S. GDP in the 4 — quarter grew by 5.7% - the data is much higher than forecast, the projected growth of 4.8%, while PMI (PMI) and Chicago”s Consumer Sentiment Index University of Michigan, published later, also turned out to be better than forecasts), 2 — negative dynamics of the stock sites, where shares of the major U.S. stock indexes closed in negative zone (Dow Jones industrial average - 10067.33 (-53.13, or -0.52%), Nasdaq Composite - 2147.35 (-31.65, or -1.45%), SP 500 - 1073.87 (-10.66 or -0.98%)), 3 - reduction in adjacent markets, namely the falling price of oil market; 4 - technical reasons - the sale of gold could be partly due to the fact that futures failed to hold above U.S. $ 1100.00 in recent attempts growth, while every time quotes fall into the lower part of the district in 1080 dollars, a relatively good demand, which prevents further decline.

During the session, platinum futures followed gold futures, but it is better they bargained. Thus, when futures for gold has risen from lows, platinum has risen in price too. Moreover, the continuing demand associated with stock-market index funds, continues to have a positive impact on platinum. The new index funds on platinum and palladium to start trading in the U.S. this month. These funds create a physical demand as the metals themselves are placed on deposit as security for their shares that are traded like a stock market instruments, but follow the price of the relevant raw materials. Some support might also have reported that Toyota, may have found a solution to the problem that caused the delay in sales of several models of cars of this company in the United States.

From news can note that the international (gold) reserves of Russia for the period from 15 to 22 January 2010. decreased by 5.8 billion dollars and in percentage terms approximately on 1,3% - to 441,4 billion dollars to 435.6 billion dollars. Thus, international reserves are at a level first reached in October 2007. Record-breaking - 598.1 billion dollars - the international reserves reached 8 August 2008. Compared with 1 January 2010. When the volume of international reserves of Russia amounted to 440.6 billion dollars, this figure decreased by 1.1%.

What to expect?
Traditional purchase of precious metals in the early years of the funds, the overall improvement in investor sentiment, as well as decrease the U.S. dollar will provide sustained support to the quotations of gold and silver. However, the situation could change dramatically if the dollar will resume its strengthening, as the inverse correlation between the dollar and the prices of precious metals continues.

Why worry?
volatile changes in the currency market may be reflected in the sharp fluctuations of prices for precious metals.

non-ferrous metals market review for 29.01.10

Dynamics
On Friday 29 January the price of nonferrous metals on the London stock exchange finished the trading session with a decrease in value against the background of strengthening U.S. dollar on the foreign exchange market, FOREX, and also due to the fall of neighboring markets and the negative dynamics of the stock pads.

At the London Metal Exchange LME aluminum price closed at 2,061 dollars per tonne.

Copper at the close of the exchange was worth 6853 dollars per ton.

Nickel bidding up the price of 18725 dollars per tonne.

London Metal Exchange index, tracking the dynamics of six metals (index of metals, consists of fixing LME base metals aluminum, copper, nickel, lead, tin, zinc) amounted to 3125.4

Causes
On Friday 29 January the price of nonferrous metals on the London stock exchange finished the trading session with a decrease in price under the following factors: 1 - strengthening of the dollar in the FOREX market against the backdrop of economic makrostatistiki and news (the U.S. GDP in the 4-m quarter rose by 5.7% while the forecast of 4,8%, PMI (PMI) Chicago was 61.5 while the forecast 57.2, the index of consumer sentiment at Michigan State University - 74,4 while the forecast 73,0) 2 - decrease in adjacent markets, namely the drop in oil prices and precious metals, 3 - negative dynamics of the stock sites, where the major U.S. stock indices closed in the redzone (Dow Jones industrial average - 10067.33 (-53.13, or -0.52%) Nasdaq Composite - 2147.35 (-31.65, or -1.45%), SP 500 - 1073.87 (-10.66, or -0.98%)).

From news worth noting that, according to the head of Chile”s Codelco Jose Pablo Arellano, Chilean copper giant, expects that China will remain in 2010. its largest market, which will grow further, and will remain the major consumer products company. In 2009. Codelco, China exported 750 thousand tons of copper - about 44% of its total production. China is the largest in terms of market: the company sold him last year of copper by 3,8 billion dollars, while it is worth noting that the total Chilean copper exports to China reached in 2009. 1,6 million tons (8 billion).

What to expect?
Many analysts say that the policy of financial incentives and a very low interest rates encouraged the purchase of non-ferrous metals. Changes in both factors is not yet in sight, so you can confidently speak about a continuing rise in prices for nonferrous metals.

Why worry?
negative factor in the market of nonferrous metals, according to analysts appear fluctuations in the currency market and economic news, which carry a greater chance of increasing desire to profit-taking by market participants and the development of a deep downward correction.

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