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  • Market News
  • 17 December 2013 :: The Stock Market Began The Week On A Positive Note
17 December 2013

The Stock Market Began The Week On A Positive Note

By Kristina Leonova: Chief Analyst in the Investment Research Department

The Stock Market Began The Week On A Positive Note
On Monday, the stock market of the United States finished the trading session with moderate growth of the main indices after the largest weeks loss since August. Since the beginning of the week, traders are concentrating on the upcoming meeting of the FED and trying to find in published macroeconomic statistics the key to the outcome of this meeting, and making their mind up if volumes of QE will actually be reduced or will be kept on the present levels. Be reminded that the beginning of cutting off the program of quantitative easing at Decembers meeting is expected by about a third of all economists, the others are still leaning towards the March meeting.

As for the macroeconomic statistical data published yesterday, it became known that industrial production in November increased by 1.1% against average forecasts of growth of 0.5%. October growth rates of industrial production were reconsidered from -0.1% to 0.1%. Labor productivity increased in the third quarter by 3%, whereas an increase by 2.8% was expected.

Following the results of the trading session, the indicator of blue chips of Dow Jones Industrial Average raised by 0.82% to the level of 15884.83 points, the index of the wide market Standard & Poor's 500 increased by 0.63% to a level of 1786.54 points, and the index of high-tech industries of Nasdaq Composite went to a plus on 0.71% and reached the level of 4029.52 points.

Leading stock indices of Europe on Monday also grew against favorable corporate news and macroeconomic statistics. One of the leaders of growth was the German DAX index which added 1.7% in the context of strong indicators of business activity in the industrial sector of Germany which were recently published. The corresponding PMI index of the production sector of Germany grew in December to maximum levels for the last 2.5 years, which says volumes about the essential increase of activity in the German industry, which could pull the entire European economy out of where it is, and into the positive zone, despite the worsening situation in France. The summary, the index of business activity of the Eurozone, characterizing the situation in the industry, and in the service sector, grew to 52.1 points from 51.7 points a month earlier, which testifies to proceeding towards the recovery of the European economy as a whole.

In the commodity market, prices for Oil are slightly down and prices for precious metals are adding in value slightly. Brent is traded on a level of 109.32$ per barrel, and losing 0.08%, WTI is decreasing by 0.16%to the level of 97.61$ per barrel. Gold and Silver are up by 0.03% and 0.16% accordingly, bargaining next to the levels of 1244.76$ and 20.13$ per troy ounce.
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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