Market Analysis

European stocks decline on Monday on fears that the six-month rally in the stock market is not justified by the prospects of corporate profits and economic growth, reported Bloomberg.

Index Dow Jones Stoxx 600 with the opening of markets has decreased by 0,5%. Prior to this indicator increased in the past seven trading sessions in a row, resulting in peaked at 11 months. Since March the minimum rate added 52% due to the appearance of signs of abating recession and improve financial performance of European companies.

The world economy is still very vulnerable - the analyst in London Barclays Wealth Michael Dix. - There is still much to be done. Shares back to fair value, and to ensure that they are again on the rise, the economy also will continue to rise.

Pessimistic investor sentiment fueled by analysts who believe that the U.S. economy will recover very slowly. In particular, the chief economist at Moody s Economy.com, Mark Zandi believes that a full recovery may take up to 5 years.

Even if the optimistic forecasts of analysts are correct, and the GDP growth next year will average 3.5% per quarter, it is not enough that has been pre-crisis level of $ 13.42 trillion, believes chief economist JPMorgan Chase Co. Bruce Kasman.

Nobel laureate Joseph Stiglitz, believes that U.S. authorities have not yet managed to solve the problems that lie at the origins of the current crisis. In the United States and in many other countries, banks that were considered too big to go bankrupt, become even more, - believes Stiglitz. Problems are more serious than in 2007, before the crisis, - he said.

In this regard, management companies Rothschild Cie Gestion, BlackRock Inc. and OppenheimerFunds Inc. remit funds to the protective actions, ie, in securities of companies in the least degree connected with the cyclical nature of economic development.

Paper's second-largest French bank Societe Generale SA have fallen in price on Monday at 2,7%, after Nomura analysts downgraded them to sell from neutral.

same investment bank, has changed the outlook for shares of Deutsche Bank to sell from buy. As a result, the market value of the leading bank in Germany decreased by 1.5%.

Quotes BHP Billiton shares fell by 1.3% and Rio Tinto - by 1% following the collapse of prices for nonferrous metals.

Experts Credit Suisse Group downgraded to market the second largest European automaker PSA Peugeot Citroen to below market with above market, referring to fears that growth in the value of securities of that company may not be justified by the level of sales that are likely to decrease with the downsizing of government support the industry. This has resulted in reducing the cost of the shares Citroen on 3,4%.

Papers

Deutsche Telekom lost in the price of 1,4%. Europe's largest telecommunications company, turned to specialists Deutsche Bank to assess the possible purchase of U.S. mobile operator Sprint Nextel Corp., CO Sunday Telegraph reported citing sources. Deutsche Bank, may require the support of shareholders, including the Government of Germany, to obtain financing for the acquisition of Sprint Nextel, the newspaper said.

HeidelbergCement shares fell 4.9% after the cement company announced plans during the additional issue of two shares for every existing is to raise funds for debt reduction.

index of the largest enterprises in Europe Dow Jones Euro Stoxx 50 to 19:20 has decreased by 0.82 points (0.03%) - up to 2,830.55 points.

French CAC 40 index lost 3.97 points (0.11%) - up to 3,730.92 points.

Deutsch DAX with the opening of the market decreased by 3.69 points (0.07%) and amounted to 5,620.33 points.

At the same time, the British FTSE 100 rose to the 19:20 on 6.67 points (0.13%), amounting to 5,018.14 points.

Kommersant: The sale of electricity for export is proposed to gradually
Umansky: The Government has laid the draft state budget-2010 the price of imported gas $ 260 per 1000 cubic meters. m
Kommersant: The auditors found violations of the budget by more than 350 million hryvnia
Futures on the S P500 decreased by 0,3%, contracts for WTI show no pronounced dynamics, bargaining at $ 68,8
RTS Index futures have risen in price on the session on 0,5% to 1190 40 points
There is a possibility that the volatility in the markets in the near future will increase
The highest volatility in the markets is expected today in the evening, when the block will be released statistics from the U.S.
When the negative dynamics of futures for the opening of trading in the U.S. and world oil prices, the most liquid stocks of Russia may begin to decline
The situation on the equity market would be today as ambiguous as the external news background

Scenario and forecasts