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  • Market News
  • 05 December 2013 :: The End Of The Year In The Markets Promises To Be hot!
05 December 2013

The End Of The Year In The Markets Promises To Be hot!

By Kristina Leonova: Chief Analyst in the Investment Research Department

The End Of The Year In The Markets Promises To Be hot!
On Wednesday, the American stock markets closed the trading session in a minus against speculation over the QE3 program turning already in December. The main sign and, probably, the only reason for renewal of conversations on repayment of bonds, was the indicator of employment of ADP for the November, which considerably exceeded forecasts of experts of 173 thousand and made 215 thousand. In case of high data on the labor market of the USA, which will be published on Friday, most likely, we are going to see a fascinating ending to the year, thus in November hearings about reduction of volume of repayment of bonds practically weren't conducted.

Meanwhile, some other important statistical indicators appeared to be worse than market forecasts, which also had its influence and did not allow indices to lose much more in value. First of all, we will pay attention to the index of economic conditions of ISM in the non-productive sphere for November, which fell from 55.4 in October, to 53.9, whilst analytics were predicting 55. Deficiency of trade balance of the country, in turn, appeared above expectations of economists of $40 billion, and made $40.64 billion. The statistics on sales of new houses in the USA, published the previous day for 2 months, due to closure of government offices in October, also did not bring anything positive to the markets. For October, the indicator slightly exceeded forecasts of analysts, and in September, it was much lower than expectations.

As a result, the indicator of "blue chips", the Dow Jones Industrial Average index, decreased by 0.16% and was closed on a level of 15 889.8 points. The index of the wide market S&P 500 went to a minus by 0.13% to the level of 1 792.81 points, and the index of the hi-tech companies, Nasdaq, grew by 0.02% to a level of 4 038 points.

Oil isn't ready to lose the positions and tries to keep at levels reached at the beginning of the week. Light this morning is adding 0.05%, and is traded on a level of 97.48$. Brent is slightly down on 0.27% on a level of 111.13$ per barrel. Precious metals oppositely are losing in price, Gold is decreasing by 0.67% at a price of 1238.80$ per troy ounce, Silver is down by 0.88% at price of 19.66$ per troy ounce.

After yesterday's block of statistics in the USA, all attention gradually switches over to actions of the Central Banks. The Bank of England and the European Central Bank are going to have meetings today. If the English regulator can keep the status quo, everybody is waiting for continuation on monetary policy mitigation from the European Central Bank.
About the author
Kristina Leonova
Kristina Leonova
Chief Analyst in the Investment Research Department

Kristina Leonova is an up and coming market specialist - currently in the process of obtaining The Chartered Financial Analyst Degree in CFA Institute.

She began her career at Liteforex (ex. Mayzus) at only 20 years old, holding the position of the Assistant of the Chief Financial Officer.

She has since become invaluable to the Company, holding the position of Chief Analyst in the Investment Research Department, and now is also responsible for our world renowned market reviews.

She has a keen eye and a good gut instinct when it comes to analyzing the markets, always staying at the top of her game, with her work often being published on other websites and news vendors.

Mayzus is excited to welcome her as our new, top financial analyst.

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