18 September 2013: FED Meeting Results To Be Announced Today
DAILY MARKET REVIEWS
By Kristina Leonova: Analyst in Portfolio Asset Management Department.
Following the results of yesterday's trading session, the world stock markets showed multidirectional dynamics. The American indexes grew within 0.4% and the index of the wide market Standard & Poor's 500 remained less than in 5 points from the maximum recorded on August 2, closing the trading day at level of 1704.76 points. In turn, the European platforms showed negative dynamics. The London FTSE index declined the most, having decreased by 0.8%.
The statistics presented during the day had positive character overall. Consumer Price Index in Great Britain grew in August for 0.4%, a 0.5% forecast had been predicted. The German ZEW Economic Sentiment increased in September to 49.6 points, from 42 points the month before.The index reached the maximum level for the last 4 years, having been affected by raised levels of optimistic expectations concerning prospects of the European economy. In addition Consumer Price Index in the USA in August grew by 0.1%, analysts expected an increase of the indicator to 0.2%.
As for the commodity market, prices for Oil are continuing to decrease, Brent is traded this morning on a level of 108.03$ per barrel losing 0.14%, Light is on the price of 104.87$ per barrel. Gold dipped below the level of 1300.00 and is traded on the price 1298.11$ per troy ounce, losing 0.86%. Silver is down to 0.95% on the price of 21.57$.
The main event of the day is going to be the announcement of the results of the FED’s meeting, which investors were waiting for, for the last few weeks. Mainly analytics are convinced that the decision on turning off stimulating programs will be the most likely scenario. The American Central Bank will most probably start reducing volumes of the repayment of bonds gradually, no more than $15 billion a month, and will also publish forecasts which will allow the estimation of long-term prospects of the economy of the USA.
As for the other statistics today, it is worth paying attention to data on the housing market in the USA, and on stocks of Oil and Oil products in the USA.
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