Market Buzz: Oil rises, markets start in black on Chavez death

6 Mar, 2013 06:44 / Updated 12 years ago

Climbing oil prices, partly prompted by the death of Venezuelan President Hugo Chavez, bring a positive mood to Russian markets. Local floors are expected to open with steady growth.

Russian floors closed up on Tuesday. The MICEX added 1.35%, while the RTS gained 1.64%. Aeroflot, E.On Russi, TGK-14, IDGC of Center and Volga Region, Surgutneftegaz and TMK dipped.

European markets also ended their session in the black. London’s FTSE100 was up 1.36%, Germany’s DAX added 2.32%, while the French CAC40 rose 2.09%.

US bourses demonstrated positive moods on Tuesday. By the end of the session the Dow had risen 0.89%, the S&P added 0.96% and the NASDAQ was up 1.32%.

On March 6 investors will be expecting a couple of big economic reports that could move markets tomorrow. Among the major ones is the eurozone gross domestic product report. Analysts expect that the eurozone economy will have contracted by 0.6% in the fourth quarter.

And it’s jobs week in America, meaning the US will release the ADP unemployment change report with a preview released on Wednesday. This data will reveal how many jobs in the private sector were added to the American economy in February. Analysts expect around 170,000 jobs will have been added in February, which is slightly fewer than in January (192,000 jobs.)

By the time Russian floors have closed, the US will release factory orders updates for January. It is expected this indicator will have fallen by 2.2% in January. In December, factory orders rose by 1.8%.

Before markets open, American Eagle Outfitters Inc (AEO) will release its earnings report.

Brent oil rose a second day, as Venezuela, OPEC’s fourth-biggest crude producer, reported the death of President Hugo Chavez. US crude stockpiles rose 5.6 million barrels last week, data from the American Petroleum Institute showed.

Oil quotations are still positive. Brent adding 0.33%, Light adding 0.27%.

Some news will also come from the Russian business on Wednesday. STS Media will present its financial statement for the 4Q2012. Experts expect the company’s proceeds to have grown by 2.1% over the past 12 months and will have made US$766.4 million.

Asian stocks are still stronger. The Hang Seng is up 0.86%, while the Nikkei has added 1.69%, and the Shanghai Composite 0.35%.