Market Analysis

 

Tuesday, January 5, most of the world"s stock markets finished the session in the green zone. The mood of optimism were associated with higher costs for oil and copper, as well as a number of positive news from individual companies.

Europe

European indexes have shown mixed dynamics with a predominance of positive component, however, the regional indicator Dow Jones Stoxx 600 fell 0.1% to a mark of 257.59 points. The key index of the UK FTSE 100 advanced by 0,4%, while the German DAX went to minus on 0,3%. Trade became the favorites desperation offinancial companies, but the paper food and health care industry is not in demand by investors.

Quotations world"s largest food manufacturer Nestle fell 2.4% after it agreed to buy illiquid unit for the production of pizza, owned by Kraft Foods, for $ 3.7 billion Papers Cadbury, in turn, sank a background of such stories on maximum over the past eight months, the value of 3,2%.

Due to the French Government that it intends to reduce orders for vaccine for swine flu, the regional pharmacists Sanofi-Aventis, GlaxoSmithKline and Novartis abated from its asset 1,3%, 2,4% and 1,7% respectively.

 Successfully formed session for the shares of the banking sector - Allied Irish earned 12% of market capitalization, and paper Barclays and Royal Bank of Scotland strengthened by 6,3% and 10% respectively.

U.S.

Due to rise in price of shares of financial institutions, as well as the increase in the value of securities of energy companies because of the increase in prices for "black gold", the U.S. stock market, similar to that in Europe, has shown mixed dynamics with a predominance of positive dimension. As a result of trading indicator of blue chips Dow Jones Industrial Average fell by 0.11% to a level of 10,572.02 points, the index of wide market SP 500 added 0.31% to a mark at 1,136.52 points, as an indicator of high-tech sector Nasdaq Composite became heavier at 0,01% and reached a level of 2308.71 points.

Hartford Financial Services Group has moved during the session on 7,7%. It is expected that the life insurance company will need fewer funds to cover losses from mortgage-backed securities, residential real estate than predicted earlier.

Against the backdrop of increasing the value of "black gold" quotes oil companies Exxon Mobil and Chevron rose by 0,4% and 0,7% respectively.

The U.S. food processing giant Kraft Foods has added to its asset 4,9%, after its main shareholder of Berkshire Hathaway voted against the sale of 370 million shares in order to further the acquisition of British confectioner Cadbury.

Latin America

Stock markets in Latin America with a few exceptions have completed the session, Jan. 5, in the green zone. Positive dynamics not supported markets of Mexico and Venezuela. The Brazilian Bovespa index rose 0.28% to 70 239.82 points, the Mexican Bolsa indicator became easier to 0,08%, while Chile"s Ipsa gained strength at 0,09%.

Due to the increasing industrial orders in the U.S. shares of the largest in Latin America Gerdau steel worker went up by 1,7%, but rates iron ore producer Vale rose in trading in Brazil at 1.4%.

Paper Tim Participacoes, the third largest cellular company in Brazil, which is a unit of Telecom Italia, jumped 7.2% - the maximum for the last two months amount. According to the information is not confirmed officially, the Spanish telephone company Telefonica may submit a proposal for the acquisition of voting shares of Tim Participacoes.

At the auctions in Mexico, Latin America"s leading retailer Wal-Mart de Mexico earned 2% of market capitalization and the largest cement maker Cemex has added to its asset 0,3%.

Asia

On Wednesday, January 6, the vast majority of Asian markets demonstrates the bullisf7fh momentum against the backdrop of increasing cost of copper at the auctions in London, the increased cost of oil and reduce the risk of defaults in the region. As leaders of growth are securities of the commodity, as well as high-tech sectors.

Japanese Nikkei 225 index added 0,46%, Hong Kong"s Hang Seng was harder to 0,62%, and the Chinese CSI 300 fell by 0,63%.

Among the favorites of trades can be distinguished Japanese car manufacturer Toyota Motor, whose shares are left in plus on 2,5%. Sales of Toyota in the U.S. market grew in December by 32%. Against the background of statements by Nintendo that the Wii game console sales in the U.S. market last month exceeded 3 million units of its securities advanced at the auctions in Tokyo on 6,9%. Quotes Hynix Semiconductor rose, in turn, on 5,1%, after it was reported that in November last year the UAE government has offered to buy a stake in the company.

Outsider trading has become the leading airline in Japan, Japan Airlines, subtracted from its assets 6,7%.

USA: the market finished the week by a wave of euphoria
World stock markets: News from China was the main reason for the reduction indices
World stock markets: the bulls have tempered his enthusiasm, but maintain a presence
World stock markets: in 2010 started with a bullish note
USA /Europe /Latin America /Asia: encouraging annual results helped to start the new year with optimism
Asia: finishing segment performed
ETF international markets: the crisis has brought incredible profits
Latin America: the Chilean market does not become a leader for the year
United States: a slight increase before the last in this year"s trading session

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