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  • Market News
  • 20 December 2013 :: The Statistics Didn't Confirm That The Decision Of FED Was Justified
20 December 2013

The Statistics Didn't Confirm That The Decision Of FED Was Justified

By Kristina Leonova: Chief Analyst in the Investment Research Department

The Statistics Didn't Confirm That The Decision Of FED Was Justified
On Thursday, the American market finished the trading session with a small decrease due to the published macroeconomic statistical data. Deterioration of data on numbers of new houses and requests for unemployment benefits cast a shadow on the recent improvement of the economic forecasts of the FED, and provoked derogation of the S&P 500 index from historical maxima.

The number of primary requests for unemployment benefits unexpectedly jumped to a maximum for the last 9 months to the level of 379 thousand, from 369 thousand previously, and sales of houses in the secondary market decreased by 4.3% to 4.90 million, which was much worse than average forecasts.

As a result, following the results of the trading session, the indicator of "blue chips" the Dow Jones Industrial Average index, was closed with an increase of 0.07% at the level of 16179.08 points, the index of the wide market S&P 500 went down by 0.06% to the level of 1809.60 points, and the index of the hi-tech companies, Nasdaq, receded by 0.29% to the level of 4058.13 points.

The trading session in Asia is also not developing in a positive direction. Indices of the region bargain mainly in negative territory. The main negative continues to arrive from China, and the situation in the liquidity market remains. Yesterday, the national Bank of China carried out dot injections of liquidity on the market, however, it practically had no affect on interbank rates.

The cost of Gold fell to the minimum level for the last three years, due to the decision of the FED to reduce the program of repayment of bonds in January next year. Analysts of Goldman Sachs Group estimate that further depreciation of this precious metal should not be excluded. They believe that by the end of next year, the cost of Gold will fall to 1050.00$ per troy ounce. It should be noted that experts submitted these forecasts a month ago.

Yesterday, Gold reached the minimum level since the 3rd of August 2013, at 1188.68$ per troy ounce. This morning, the metal is adding just 0.09%, and is traded on the price of 1194.61$. Silver is up by 0.16% at the price of 19.22$ per troy ounce.

Oil prices are also down, Brent is losing 0.33% traded at the level of 109.93$ per barrel. WTI is down by 0.25% on a level of 98.79$ per barrel.
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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