Market Analysis

 

Tuesday, December 22, the major European indexes finished the auctions with the growth against the backdrop of rumors about the continuation of the rally in equity markets in 2010. Thus, according to most analysts, the shares of companies in the next 12 months will increase by 10-20%.

With such an optimistic forecasts, investors did not pay attention to the published macro-economic indicators, according to which GDP growth United States and Britain in the third quarter were below forecasts. Not pleased and German index of consumer confidence GfK, depleted in January from 3.7 points to 3.3 points with the expected fall to 3.5 points. Only sales of homes on the secondary market in the U.S. in November, exceeding the projected growth from 6.10 million to 6.25 million, rising to 6.54 million

Positively affect the mood of bidders and the news from Greece. Thus, the rating agency Moody"s downgraded the country"s credit rating one level from A1 to A2, which, nevertheless, remained on the 5 steps above the level considered to be no investment and at 2 levels higher than similar ratings assigned to the country specialists Standard Poor"s and Fitch Ratings.

As a result of trades regional index Dow Jones Stoxx 600 added 0.69%. The British FTSE 100 gained strength at 0,65%, German DAX Index rose 0.26%, the Austrian ATX rose to 0,08%, while the French CAC 40 advanced to 0.68%. Leader of growth was the Swiss SMI, an increase of 1,21%.

Equity National Bank of Greece, Greece"s largest lender, jumped 7.4%, and paper bank EFG Eurobank Ergasias added 8.84% after ratings agency Moody"s downgraded the country"s credit rating to A2 level, which in 2 steps higher than those Standard Poor"s ratings, and Fitch Ratings.

Quotations Swiss bank Julius Baer Group climbed 3.49%. Analysts Goldman Sachs Group shares added to the list of securities recommended for purchase.

British builders also managed in the course of trading to increase market capitalization. For example, shares of Barratt Developments "recovered" at 1,67%, and quotes Taylor Wimpey added 3,96%. Specialists Goldman Sachs raised their recommendations on the securities of those companies with a "hold" to "buy".

Shares in Infineon Technologies strengthened 3.63%. The second largest European producer of semiconductors increased earnings forecast for the first quarter of 2009/10 financial year. Papers STMicroelectronics have moved to 2,96%.

Market capitalization automaker Renault, which owns 44% stake in th Nissan Motor, increased by 2,82%. Toyota Motor and Nissan took the leading position in the volume of production in November on the market in Japan because of government incentive programs, contributed to an increase in demand.

Values of the basic indexes on closing are resulted in the table:

Latin America: Brazil, waiting to improve, rally returns
United States: the clouds dissipate, investors are set up on the Christmas weekend
Week on the world stage: New Year"s oil fluctuations
Technical analysis for gold index fund SPDR Gold Trust
Asia: cheaper yen encouraged by Japan, China introduced its poison in the honey
Latin America: mixed dynamics with a neutral background newsletter
United States: in the absence of market news bidders listened to expert advice
Europe: the beginning of the week in green
Asia: depressing news background is not made of the rally

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