Market Buzz: Growth at week’s end
Russian floors started off Friday with gains and investors expect the upward movement to continue throughout the day on positive international outlook
Thursday’s session ended slightly lower for the Russian floors,
despite international optimism, as investors fear to increase the
volumes of purchasing cautious that the downgrade trend has not
yet reversed.
The MICEX ended lower 0.54 percent at 1313.15, while the RTS
closed down 0.1 percent at 1262.77. Sales of Gazprom and VTB
shares could have also contributed to the downscale movement of
the Russian indices.
European stock markets have climbed for a third day on news of an
unforeseen drop in German unemployment and strong US data
released earlier.
London's FTSE 100 index of leading shares rose 1.26 percent to
6,243.4 on Thursday. Frankfurt's DAX 30 added 0.63 percent to end
at 7,990.75 points and in Paris the CAC 40 advanced 0.97 percent
to close at 3,762.19.
Madrid ended up 0.27 percent and Milan gained 0.44 percent.
Stocks in the US rallied on Thursday closing with strong gains
for a third straight day digesting positive economic data and
encouraged by comments from a top Federal Reserve official that
the US monetary authority would not rush to end its bond
purchasing program.
The Dow Jones rose 0.77 percent to 15,024.49. The S&P 500
added 0.62 percent to 1,613.20, while the tech-rich NASDAQ gained
0.76 percent to 3,401.86.
Markets in Asia were mostly higher on Friday, pushed up by good
economic news from Japan, and continuing to react to positive
data from the United States.
Japan's Nikkei 225 index surged 3.6 percent to 13,684.37 as the
industrial production in the country climbed up another 2 percent
in May, demonstrating a steady increase for the fourth straight
month. Also the closely watched consumer price index stopped
falling for the first time in seven months.
Hong Kong’s Hang Seng advanced 1.2 percent, while the Shanghai
Composite in Mainland China rose 0.8 percent. Elsewhere in Asia
South Korea's Kospi added 1.3 percent, and Australia's
S&P/ASX 200 gained 0.5 percent.
On Friday investors will be eyeing the EU leaders’ second day of
a two-day economic summit in Brussels. Also Germany is expected
to give its preliminary data on consumer price inflation, which
accounts for a majority of overall inflation. France will release
data on consumer spending.
Canada is to publish its monthly GDP report and the US is to
release a report on manufacturing activity in Chicago and revised
data from the University of Michigan on consumer sentiment.
Brent oil is currently trading at $103 up 0.18 percent, while WTI
is trading at $97.70 up 0.28 percent.