19 November 2013: Investors Started To Doubt Correctness Of Growth Of Stock Indices
DAILY MARKET REVIEWS
By Kristina Leonova: Analyst in Portfolio Asset Management Department.
Yesterday, the stock market of the United States finished the trading session with a moderate decrease in the main indices, and the index of blue chips Dow Jones Industrial Average exceeded for the first time to a level of 16 000 points. The Standard & Poor's 500 index, in turn, during the session, exceeded a level of 1800 points for the first time. Investors started to have concerns related to the ability of the markets to continue its rally up.
Following the results of the trading session, the indicator of blue chips Dow Jones Industrial Average raised by 0.09% to the level of 15976.02 points, the index of the wide market Standard & Poor's 500 decreased by 0.37% to a level of 1791.53 points, and the index of high-tech industries of Nasdaq Composite went to a minus on 0.93% and reached a level of 3949.07 points. Nasdaq lost much more than the other indices, because the IT sector has been under strong pressure. In particular, Facebook and Twitter lost more than 6% of capitalization.
The Asian markets, following the American session, bargained without essential dynamics. The index of the industrial companies of continental China in Hong Kong, again showed an increase over 1.00%, and for three trading sessions already grew by 10.00%. Meanwhile, statistics were published which showed that growth of volume of direct foreign investments in China slowed down to 5.77% in October, from 6.2% in September. In Japan, on the contrary, the market appeared under pressure because of strengthening of the Yen, which is more expensive again and is on a level over 100 Yen per Dollar. Nikkei 225 closed the trading session with a decrease of 0.25% at a level of 15126.56 points, and Chinese Shanghai Composite lost 0.18% reaching a level of 2193.13 points.
The commodity market in many respects ignored the Chinese positive because of a proceeding rise in prices for real estate in the country. Growth in October on average made 8.78% in annual expression which could become a reason for the next drastic measures in monetary policies. Gold again decreased in price, this morning winning a bit back, adding 0.13% and traded on a price of 1273.91$ per troy ounce. Reserves of SPDR Gold Trust decreased by 4.2 tons to 864.51 ton. This is the lowest value of reserves of fund since February 2009, when incentives of FRS only were expected. However, the price for the metal at that time was much lower, in the range of 900.00$ - 950.00$ for troy ounce. Brent was down by 0.38% at the price of 108.06$ per barrel, WTI is down by 0.15% at level of 93.54$ per barrel.
Today current conditions and economic expectations of ZEW of Germany, and Employment Cost Index in the USA are going to be published.
Copyright: MAYZUS Investment Company Ltd