Analytics on 30/10/2010

In the last trading day of the previous week, the stock indices showed a strong rise in single dynamics. Dow Jones increased by 0.14% (23434.19), S&P 500 added 0.81% (2581.07), the Nasdaq jumped by 2.20% (6701.26). European markets also showed growth in the unified dynamics and closed in the green zone. The German DAX index increased by 0.64% (13217.54), British FTSE 100 rose 0.25% (7505.03).

Today it is expected a few publications of the macroeconomic data and the speeches of the monetary authorities that could affect investors' decisions during the trading sessions.

At 02:50 MSK the Volume of retail sales in Japan in September
At 10:00 MSK retail sales in Germany in September
At 11:00 MSK the Index of leading economic indicators KOF for October
At 15:30 MSK Base price index of personal consumption expenditures in the US in September
At 15:30 MSK the Cost of individuals in the US in September
At 16:00 MSK the consumer price Index for Germany in October

There is a new development of the conflict with Catalonia in Spain. In the Parliament it was discussed the question of direct control over the area that tried to declare its independence. This remains the main factor of pressure on European markets. But they were able to rise due to a reaction to the weak Euro, which will increase exports from the region. Also the quarterly in average performance of leading companies of the Old World was on top. The Swedish company Electrolux announced an increase in net profit by 12%, which was more than expected. French oil company Total reported a growth in quarterly earnings by 40% due to higher oil prices and lower costs. Only Volkswagen has reported a more than twofold decrease in profit in the third quarter due to the "diesel" scandal.

On Friday an important driver for the US markets was macrostatistic. The U.S. GDP growth in the third quarter was 3.0% according to preliminary estimates. Although this tells a reduction in the growth tempo after the raise for the previous quarter of 3.1%, but it could be much worse after a series of storms swept through Texas and Florida, which led to massive infrastructure damage and the suspension of activities of many businesses. While consumer spending, which is two-thirds of business activity in the U.S. increased in the third quarter compared to the previous year by 2.4% against an expected 2.1%. This result, coupled with recent comments from the fed confirms the ongoing recovery of the US economy after a hitch in the beginning of this year. Also the consumer confidence index from the University of Michigan jumped in October to 100.7 points, the highest level since January 2004.

On Friday besides the statistics the positive mood of investors was due to a number of strong quarterly results of major companies of high-tech sector. This caused a significant increase of the Nasdaq and contributed to the overall rise in the stock market. Alphabet holding company, parent company Google has added 4.3%, after reporting better than the preliminary estimates due to a sharp increase in revenue from advertising.

On Friday gold added a bit in price due to uncertainty with the choice of the new head of the fed. In spite of this, at the end of previous week the loss of the precious metal amounted to 0.2%.
Strong growth was shown by December futures on WTI. By results of trades the growth was 1.26 dollars or 2.4% up to $ 53.90 per barrel, there is a strong resistance at this level. This is the maximum since February of this year. The main reason of that is the pending renewal of the agreement OPEC+ on the reduction of oil production until the end of 2018. For the week the price of oil increased by 4%.