Daily Market Reviews by MAYZUS.com

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14 February 2014: Markets Are Consolidating At The Levels Reached

DAILY MARKET REVIEWS
By Kristina Leonova: Analyst in Portfolio Asset Management Department.

On Thursday, indices of the United States managed to finish the trading session on a positive note, and closed the day with a moderate increase. Following the results of the trading session, the indicator of blue chips, the Dow Jones Industrial Average, raised by 0.40% to the level of 16027.59 points, the index of the wide market, Standard & Poor's 500, increased by 0.58% to the level of 1829.83 points, and the index of high-tech industries, Nasdaq Composite, went to plus on 0.94% reaching the level of 4240.67 points.

As for the statistics published yesterday, the number of primary requests for unemployment benefits contrary to expectations, increased from 331 thousand to 339 thousand, and at the same time, retails in January were reduced by 0.4%, though zero change was expected. At the same time, December retails were reconsidered towards a fall from 0.2% to minus 0.1%, and production stocks in the last month of 2013 accelerated growth rate to 0.5%, reflecting activity which wasn't too high of retailers and consumers.

In the meantime, the Asian markets are traded ambiguously this morning . The Chinese market received incentive in the form of inflation at the level of 2.5% in January, and also because of the price index of the producers, which has fallen during this period by 1.6%. Japanese Nikkei 225 increases by 2.17%, Shanghai Composite is adding 0.83%, Futsee-100 loses 0.24%.

The situation in the commodities market remains stable and is developing positively. Prices of gold managed to go over the level of 1300.00$ per troy ounce, and are adding 0.63% this morning, traded on a level of 1308.24$. Silver jumped by 2.07% reaching a price of 20.82$ per troy ounce. Prices of oil are stable, with Brent traded on a price of 108.45$ per barrel and losing just 0.07%. WTI is down by 0.21% traded on a level of 99.84$ per barrel.

This morning data on gross domestic product of Germany for the 4th quarter of 2013 has been published, which made 0.4% against the expected 0.3%. Later throughout the day, data on preliminary gross domestic product of the Eurozone for the 4th quarter of 2013 and trade balance for December, are going to be presented. Also, data on industrial production in the USA for January will be published in the evening.

Copyright: MAYZUS Investment Company Ltd

 

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17 February 2014: Statistics Support The Markets

DAILY MARKET REVIEWS
By Kristina Leonova: Analyst in Portfolio Asset Management Department.

The last trading day of the previous week was rather full with publications of macroeconomic statistical data, which had an influence on developments in the markets, and increased volatility. Analysts were predicting an increase of the industrial production in January by 0.2%, but actual numbers were reduced by up to 0.3%, which is the maximum value since April, 2013. Even more disappointing was data from the manufacturing industry, who's volume of production decreased in January by 0.8%, which is the greatest fall since May, 2009. Analysts were predicting an increase of 0.1%.

In spite of the fact that in the process of the publication of various reports, indices were moving up and down, they managed to close the trading session in positive territory. Dow Jones industrial average Index raised by 0.79% up to 16154.39 points, the Standard & Poor's 500 index raised by 0.48%, having closed at the level of 1838.63 points, and the Nasdaq Composite index raised by 0.08% to the value of 4244.03 points.

As for the commodities platforms, gold continues to grow due to the weaker dollar, increasing by 0.53% and bargaining next to the level of 1325.56$ per troy ounce. Silver is also up, adding 1.53% and bargaining next to the level of 21.75$.

Prices of oil are also stable and are developing in a positive direction. An interesting fact to pay attention to is that spread between Brent and WTI is decreasing, and WTI managed to go through the level of 100.00$ per barrel. This morning, Brent is traded on a level of 109.10$ per barrel, and is adding just 0.02%, while WTI is up by 0.42% and is traded on a level of 100.55$ per barrel.

Copyright: MAYZUS Investment Company Ltd

 

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18 February 2014: News From Japan Is Boosting The Market

DAILY MARKET REVIEWS
By Kristina Leonova: Analyst in Portfolio Asset Management Department.

The First trading day of the week was affected by lowered activity on the stock platforms due to the bank holiday in the United States.

This morning, interesting news came from the Bank of Japan, reporting its intention to continue soft monetary policy until the time the rate of inflation will reach 2%. The regulator plans to continue an annual increase in monetary base in the range of 60 trillion to 70 trillion yen. This decision was made unanimously and coincided with average forecasts of analysts. In addition, the Bank of Japan confirmed the volume of repayment of state bonds on the level of 50 trillion yen a year. It should also be noted that the central bank of the country also made the decision to prolong three programs of crediting for a year, which were expiring in March.

This news immediately had an effect on the Japanese yen and Japanese stock market. The Japanese yen fell sharply in price against the dollar, and is traded this morning on a level of 102.59. The weakening yen pushed up prices of the Japanese companies focused on export, and as a result, the Nikkei grew by 3.18%.

The situation in the commodities market remains the same, Brent is losing around 0.10% and is traded on the level of 109.07$ per barrel. WTI is slightly better, growing by 0.22% on the level of 100.35$ per barrel. Gold is stable and is losing just 0.02%, traded on a level of 1318.30$ per troy ounce. Silver remains strong at the price of 21.56$ and adds 0.65%.

Today will be saturated with publications of statistics - these being data on balance of current accounts of the Eurozone, inflation of Britain, the German index of economic expectations of ZEW, the index of activity of FED of New York, and volume of inflow of the capitals in treasury securities of the USA. All this statistical data could increase volatility in the markets and change further development in the short-term.

Copyright: MAYZUS Investment Company Ltd

 

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19 February 2014: The Situation In The Markets Looks Very Shaky

DAILY MARKET REVIEWS
By Kristina Leonova: Analyst in Portfolio Asset Management Department.

As expected, the trading session on Tuesday was very volatile. Additionally, presented macroeconomic data shook the optimism in the markets.

European stock platforms finished the trading session without significant change. Attention should be paid to the fact that the index of economic expectations in the business environment in Germany, counted by ZEW institute, decreased from 61.7 to 55.7 points in February. In the meantime, the assessment of the current situation was better than the forecasts at 50.0 points, having declared a maximum level since the 3rd quarter of 2011.

Following the results of the trading session, the key index of Great Britain, FTSE 100, increased by 0.9%, French CAC 40 lost 0.1%, and German DAX grew by 0.03%. The regional STXE 600 indicator increased by 0.01%, having closed on a level of 334.6 points.

In the USA, the macroeconomic statistics were again quite weak, the index of production activity in New York in February decreased further than expectations, from 12.5 to 4.5 points. As a result, the Dow Jones Industrial Average Index lost 0.15%, and reached the level of 16130.40 points, S&P 500 and Nasdaq were slightly better. S&P 500 increased by 0.12% reaching the level of 1840.76 points, and Nasdaq Composite added 0.68% traded on a level of 4272.78.

Oil prices are staying up, with Brent on 110.20$ per barrel, losing just 0.23%. WTI is still strong, reaching the level of 102.14$ per barrel and adding just 0.04% this morning. Gold and silver are down by 0.48% and 0.77% accordingly, traded on a level of 1318.11$ and 21.73$ per troy ounce.

In the evening, the attention of the participants of the markets will be focused on the minutes of the last meeting of the FED, which took place on the 28th and 29th of January. No surprises are expected from these documents, but in the meantime though the latest economic reports are not supporting statements that the American economy started to stabilize, and any signal that the FED is ready to change their decisions regarding the further decrease of the QE3, depending on the current situation, could return encouragement in the markets.

Copyright: MAYZUS Investment Company Ltd

 

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20 February 2014: Markets Seem To Be Unable To Decide On The Direction

DAILY MARKET REVIEWS
By Kristina Leonova: Analyst in Portfolio Asset Management Department.

Yesterday, the stock market of the United States finished the trading session with a moderate decrease. The American indices were not strong enough to beat historical maximum levels, even though a day earlier the S&P 500 stopped literally 1 point from the record.

Another disappointing factor was the macroeconomic statistical data published yesterday. The number of new constructions of houses in January, from the reconsidered 1.048 million, unexpectedly dropped to 0.88 million, and in general, all the published data in relation to new constructions has been rather weak. It should be noted that for the last few weeks in the US, almost every presented report has been rather disappointing, but mostly it was written off for weather, or in general was ignored by the market.

Also yesterday, investors finally got the chance to see the minutes of the last meeting of the FED, where it was stated that members of the committee on the open markets consider that the program of quantitative mitigation could be continued to be deducted, in the situation the committee will not begin to see any notable changes. In general, the minutes did not bring anything unexpected or new.

As a result, the Dow Jones Industrial Average went down by 0.56% to the level of 16040.56 points, the index of the wide market S&P 500 decreased by 0.65% to the level of 1828.75 points, and the Nasdaq Composite went to a minus by 0.82% and reached the level of 4237.95 points.

Commodities this morning are slightly down, but the situation remains stable. WTI managed to increase in price yesterday by 0.9%, to the level of 103.31$ per barrel but this morning has fallen slightly, bargaining next to the level of 102.61$ per barrel. Gold and silver are losing 0.53% and 1.33% accordingly, traded on levels of 1313.42$ and 21.56$ per troy ounce.

Today market will be oversaturated in respect of economic statistics, as both Europe, and States will publish many interesting reports. From Europe we will see data on PMI in Germany and in Eurozone; the USA will publish data on Consumer Price Index, jobless claims and PMI in manufacturing sector. Special attention should be paid to the Manufacturing Index of Philadelphia.

Copyright: MAYZUS Investment Company Ltd

 

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10 April 2014:FOMC Protocols Inspired Investors

Yesterday, we emphasized that special attention should be paid to the publication of protocols of the last meeting of the FOMC, which, as a result, helped the American stock market to finish the trading day with an increase.

The Dow Jones Industrial Average index increased by 1,11% to the level of 16437,18 points, the S&P 500 added 1,09% and was closed at the level of 1872,18 points, and the index of high-tech companies, Nasdaq Composite, moved up on 1,72% and reached the level of 4183,90 points.

Minutes from the last FED meeting showed that the majority of the members changed their attitude towards the situation in the U.S. According to the protocols, most of the members revised the GDP growth forecast downwards, and expressed concerns about achieving the inflation target. In addition, the regulator took the decision to abolish the unemployment rate at 6,5%, as one of the signals to higher interest rates.

The European trading session was also rather positive and the majority of the stock indices were able to recoup losses of the previous days. The British, FTSE 100 rose by 0,70%, the French CAC 40 increased by 0,40%, and Germany's DAX added 0,20% . The Regional indicator STXE 600, in turn, increased by 0,40% and was closed on the level of 335,16 points. Among the published statistical data in the region, Germany's trade surplus in February can be noted, which was at the level of 15,7 billion euros, while analysts were expecting a surplus of 17,8 billion euros.

Today is expected to be quite a quiet day in relation to the publication of macroeconomic statistical data, so the participants of the markets are going to look for external information, which could influence the movements in the markets. As previously mentioned, the U.S. started its corporate reporting season, and despite the controversial start with Alcoa, so far the results are rather good.

 

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MAYZUS Daily Technical Levels

EUR/USD - during the day there is a risk of a technical correction
Our turning point is the level of 1.38700
Our preference: Sell the EUR/USD below the level of 1.38400 with the key targets being: 1.38200 and 1.38000.
Alternative scenario: If the resistance level of 1.38700 is breached up with success, then the pair could rise to 1.38900 and 1.39200.
Analysis: The technical indicators point that the EUR/USD pair is overbought and will give a signal to sell soon.

This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.



MAYZUS Daily Technical Levels

GBP/USD – during the day there is a risk of a technical correction
Our turning point is the level of 1.68170
Our preference: Sell the GBP/USD pair below the level of 1.67500, with the nearest targets being 1.67000, and 1.66600.
Alternative scenario: If the level of 1.68170 is breached up with success, then the pair could rise to 1.68400, and 1.68800.
Analysis: The technical indicators are in the overbought area and will give a signal to sell soon.

This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.




MAYZUS Daily Technical Levels

USD/JPY – growth is possible
Our turning point is the level of 101.500
Our preference: Buy the USD/JPY pair above the level of 102.100, with the nearest targets being 102.500, 102.800 and 103.200.
Alternative scenario: If the support level of 101.500 is breached down with success, then the pair could drop to 101.000, and 100.700.
Analysis: The technical indicators point that the USD/JPY pair is oversold.

This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.



MAYZUS Daily Technical Levels

AUD/USD – during the day there is a risk of a technical correction
Our turning point is the level of 0.94400
Our preference: Sell the pair below the level of 0.93850, with the nearest targets being 0.93400, 0.93000 and 0.92600.
Alternative scenario: If the resistance level of 0.94400 is breached up with success, then the pair could rise to the following levels: 0.94600 and 0.95000.
Analysis: The technical indicators point that the AUD/USD pair is overbought.

This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.



MAYZUS Daily Technical Levels

XAU/USD – during the day there is a risk of a technical correction
Our turning point is the level of $1320
Our preference: Sell Gold below the level of $1313, with the nearest targets being $1307 and $1300.
Alternative scenario: If the resistance level of $1320 is breached up with success, then Gold could rise to $1330 and $1340.
Analysis: The technical indicators are in the overbought area and will give a signal to sell soon.

This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.


MAYZUS Daily Technical Levels

XAG/USD – during the day there is a risk of a technical correction
Our turning point is the level of $20.15
Our preference: Sell Silver below the level of $19.95, with the nearest levels being $19.80 and $19.65.
Alternative scenario: If the resistance level of $20.15 is breached up with success, then Silver could rise to $20.30 and $20.60.
Analysis: The stochastic indicator is in the overbought area and will give a signal to sell soon.

This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.

 

[MAYZUS_rep]

MAYZUS Daily Technical Levels

EUR/USD - during the day there is a risk of a technical correction
Our turning point is the level of 1.39215
Our preference: Sell the EUR/USD below the level of 1.38700 with the key targets being: 1.38400 and 1.37900.
Alternative scenario: If the resistance level of 1.39215 is breached up with success, then the pair could rise to 1.39430 and 1.39700.
Analysis: The stochastic indicator gave a signal to sell the EUR/USD pair.
This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.


GBP/USD – during the day there is a risk of a technical correction
Our turning point is the level of 1.68170
Our preference: Sell the GBP/USD pair below the level of 1.67500, with the nearest targets being 1.67000, and 1.66600.
Alternative scenario: If the level of 1.68170 is breached up with success, then the pair could rise to 1.68400, and 1.68800.
Analysis: The technical indicators point that the GBPUSD pair is overbought.
This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.


USD/JPY – growth is possible
Our turning point is the level of 101.300
Our preference: Buy the USD/JPY pair above the level of 102.100, with the nearest targets being 102.500, 102.800 and 103.200.
Alternative scenario: If the support level of 101.300 is breached down with success, then the pair could drop to 101.000, and 100.500.
Analysis: The technical indicators point that the USD/JPY pair is oversold.
This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.


AUD/USD – growth is possible
Our turning point is the level of 0.93400
Our preference: Buy the pair above the level of 0.93850, with the nearest targets being 0.94500 and 0.95000.
Alternative scenario: If the support level of 0.93400 is breached down with success, then the pair could drop to the following levels: 0.93000 and 0.92600.
Analysis: The stochastic indicator gave a signal to buy the AUDUSD pair.
This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.


XAU/USD – during the day there is a risk of a technical correction
Our turning point is the level of $1325
Our preference: Sell Gold below the level of $1315, with the nearest targets being $1308 and $1300.
Alternative scenario: If the resistance level of $1325 is breached up with success, then Gold could rise to $1340 and $1350.
Analysis: The technical indicators are in the overbought area and gave a signal to sell.
This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.


XAG/USD – during the day there is a risk of a technical correction
Our turning point is the level of $20.15
Our preference: Sell Silver below the level of $19.95, with the nearest levels being $19.80 and $19.65.
Alternative scenario: If the resistance level of $20.15 is breached up with success, then Silver could rise to $20.30, $20.50 and $20.65.
Analysis: The stochastic indicator is in the overbought area and gave a signal to sell.
This information is an analytical review of Capital and FX markets. The material presented, and the information contained, is investment research and should in no way be considered as the provision of investment advice for the purposes of Investment Firms Law 144(I)/2007 of the Republic of Cyprus, or any other form of personal advice, which relates to certain types of transactions, with certain types of financial instruments.

 

[MAYZUS_rep]

11 April 2014: The Stock Market Of The U.S. Outlined The Correction
By Kristina Leonova: Chief Analyst in Investment Research Department

There is an impression that the markets are moving up and down, without having the opportunity to decide on a further direction. One day, indices are growing, another day, they are decreasing, thereby leveling all growth of the previous sessions.

Yesterday, the European indices finished the trading day in different directions. At the beginning of the trading session, investors won due to positive news from the USA. After that, some of the indices began to fall, due to the fact that there was not a lot of macroeconomic statistical data published. As a result, the index of the London stock exchange, the FTSE 100, grew by 0,1%, the index of the Parisian stock exchange, the CAC 40, lost 0,66%, and the index of the Frankfurt stock exchange, DAX, decreased by 0,55%.

A pessimistic mood began in Europe and was followed by American indices. We saw a substantial increase in the price of indices on Wednesday, but it seems that after that, stock markets decided to have a correction. A push factor was the statistical data on export and import in China, which appeared to be extremely lower than the predictions of analysts. Import of the country made a number of minus 11,3%, at an expected growth of 2,4%. Export appeared to be minus 6,6% at the expected 4,0%.

However, the statistical data coming from the U.S. was of a positive character, but indices could not find strength to move up. The number of primary requests for unemployment benefits in a week, appeared to be slightly less than expectations on 320 thousand, and made a number of 300 thousand. As a result, the Dow Jones Industrial Average index fell by 1,62% to the level of 16170,22 points, the S&P 500 lost 2,09% and reached a level of 1833,08 points, and the Nasdaq Composite had the biggest loss of the day and decreased by 3,1% to the level of 4054,11 points.

Prices of commodities are stable. Brent and WTI are losing 0,26% and 0,30%, traded on levels of $107,24 and $102,07 per barrel. Gold is flat, traded on a price of $1320,86 per troy ounce. Silver is down by 0,24% at $20,04 per troy ounce.