18 October 2013: Attention Of Investors Switched To Macroeconomic Statistics
DAILY MARKET REVIEWS
By Kristina Leonova: Analyst in Portfolio Asset Management Department.
Following the results of the trading session, the indicator of blue chips Dow Jones Industrial Average went down by 0.01% to the level of 15371.65 points. The index of the wide market Standard & Poor's 500 increased by 0.67% to the level of 1733.15 points, and the index of high-tech industries, Nasdaq Composite increased by 0.62% and reached the level of 3863.15 points.
Data on industrial production and the number of constructions that had begun weren't published yesterday, but the weekly statistics on the number of primary requests for unemployment benefits showed a small decrease, from the reconsidered 373 thousand to 358 thousand, but nevertheless this decrease was weaker than the expected 335 thousand.
Yesterday, we had an opportunity to observe in the market a classical scheme "buy on hearings – sell on the facts". As soon as the US declared the decision, the markets ceased to support the American currency. As a result, the EUR/USD finished the trading day around the level of 1.3670, and GBP/USD – around 1.6150.
EUR/USD got good support, not only due to technical correction, but also in connection with news that the Chinese rating agency lowered the status of sovereign debt of the US from A to -A. The pair reached a minimum at 1.3515 then the announcement of the restoration of work of the American government was made, and thereafter the pair started to grow. As a result, the currency reached its maximum at 1.3675.
One more interesting development was observed in the Gold and Silver market. The most interesting point was that prices of Gold punched upward, a bearish corridor from 28th of August 2013. Considering that the cease government activity caused the US economic damage, the FRS, at the meeting at the end of the month, won't decide on a reduction of the program of monetary easing. In November, there will be discussions regarding Janet Yellen taking her post as the head of FED, madam Yellen will defend for certain adaptive monetary policy that will give support to Gold. This morning Gold is decreasing by 0.41%, having traded on the price of 1317.47$ per troy ounce.
Copyright: MAYZUS Investment Company Ltd