Market Buzz: Slight recovery to kick off week
Rising oil and a poor macroeconomic news background will give Russian stocks field for a slight recovery after the last week’s fall.
Russian floors ended Friday’s session in the red. The MICEX lost 0.71%, while the RTS dropped 0.59%.
Shares of FSK EES, Inter RAO, Vozrozhdenie bank, MTS, Belon, Raspadskaya and Mechel looked worst of all on Friday. TGK-14, Magnit, Aeroflot, OGK-2, Surgutneftegaz equity shares and preferred shares of Tatneft were in the black.
Global outlook is quite positive on Monday. Oil prices are up on a lack of news after a massive slump last week. Brent is up by 0.4%, WTI is up by 0.17%. Industrial metals are also up. Nickel is adding 0.5%, copper in up by 07%.
The European floors ended last week in the red, having dropped the most since October. The Stoxx Europe 600 index dropped by 1.6% to close at 287.13, the lowest level in more than a month. During the week the index lost 2.3%. The British FTSE100 lost 1.49%, German DAX slid by 2.03%, and French CAC40 was down by 1.68%.
This week will bring news from the US, as the States kicks off another earnings season. The outlook for earnings looks poor and investors are waiting for surprises. These reports will be moving Wall Street this week after US stocks’ major drop last week on growing evidence the economic recovery has slowed down.
Alcoa Inc. will open the series of updates and report results for the first three months of 2013 after markets close on Monday. Reports from some major banks including JP Morgan Chase and Wells Fargo will follow later in the week.
Wall Street wrapped last week with a fall of major indicators. The Dow was down by 0.28%. S&P 500 lost 0.43%, NASDAQ was down by 0.65%.
Asian stock markets were mixed Monday as investors are still worried by the situation on the Korean Peninsula, bird flu in China and a disappointing US jobs report.
Japan’s Nikkei is growing by 2.5% as the country’s central bank adopted a daring aggressive stimulus plan on Thursday last week and is now dropping the yen in order to boost Japan’s powerhouse export sector.
