04 November 2013: The Markets Open The Month Having Made A Good Start
DAILY MARKET REVIEWS
By Kristina Leonova: Analyst in Portfolio Asset Management Department.
The Dow Jones index raised by 0.45% to 15615.55 points, the gain in a week being 0.3%. The Standard & Poor's 500 index raised by 0.29%, having closed at the level of 1761.64 points, and having gained in a week only 0.1%. The Nasdaq Composite index raised by 0.06% to value of 3922.04 points, having lowered within a week by 0.5%.
On Friday, there was only one important macroeconomic news published across the USA, the assessment of industrial activity in country scales for the last month. The index of economic conditions in the production sphere ISM, counted by the Institute of management of deliveries of the USA in October, grew to the maximum value since April 2011, having reached the level of 56.4 points, when analytics were predicting a decrease to 55.0 points from 56.2 points, the month before. This result became a pleasant surprise, considering the situation we observed in October in connection with the threat of a default. It should be noted that this index, for the 5th month in a row, stays on a level above 50 points, which testifies the increase in the sectors activity. The positive wave of American industrial data was supported by higher than expected growth rates of industrial activity in China, in October.
The commodity market is stagnating and major commodities are showing a down going trend. The price of futures of Gold on Friday fell by 10.50 Dollars or 0.9%, to a value of 1313.20 Dollars per troy ounce. This morning, Gold is traded on a price of 1312.28$. Gold lost in price, due to essential strengthening of positions of the Dollar throughout a basket of world currencies, mainly at the expense of the EUR/USD currency pair. Factor in that the FED, in the final document of the last meeting, didn't exclude the possibility of a reduction of volumes of buying up of assets in the current year, has also been a significant influence in pushing Gold down. In total, Gold for the week lost 2.9%. Due to the decrease in the price of Gold, the world's largest gold-mining company, the Canadian Barrick Gold lost 7.1%, and the leader in the USA, and only a part of S&P 500 index, Newmont Mining, receded by 4.7%.
The price of Brent is on the level of 106.30$ per barrel this morning, Light is on the price of 95.11$. Oil fell in price to the minimum level since June the 21st, due to the strengthening of the Dollar, and continuous growth of its stocks within the last 6 weeks, according to data of the Ministry of Energy of the USA. Following the results of the 4th in a row unprofitable week, "black gold" suffered losses of 3.3%.
The upcoming week is the first week of the new month, and therefore will be saturated with the key macroeconomic releases, capable to have considerable impact on the development in the stock markets and dynamics of the currencies.
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