Market Analysis

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

Dow Jones Stoxx 600 fell during trading on 1,1%. This indicator increased by 53% compared with the minimum recorded on March 9.

We have seen massive rally. It seems that the action now looks too expensive. That is why the market took a pause and waiting for the October data on income, - said the chief investment officer at Octopus Investments Ltd. London Lothar Mentel.

value of shares of the world's leading mining group BHP Billiton Ltd. declined during the session at 3%. Copper, lead, nickel and tin fell in London trading on Monday.

price securities KS AG, Europe's largest potash producer, fell 4.5% after the leader of the sector - Canada's Potash Corp. of Saskatchewan - downgraded its profit forecast. Net profit Potash Corp. on the basis of the current year will be $ 3,25-3,75 per share, compared with the previous forecast of $ 4-5 per share, reported the company. Analysts polled by Bloomberg, on average expected $ 4.03.

Shares Royal Bank of Scotland have fallen in price by 5,6% on the information that the bank is in talks with shareholders regarding the scope of possible offerings. According to the source, Royal Bank of Scotland can draw from 3 billion pounds ($ 4.9 billion) to 5 billion pounds through placement of securities among its shareholders.

value of the UK oil and gas company Tullow Oil Plc fell on Monday on 2,3%, as the Italian Eni SpA considered Tullow Oil is too expensive acquisition, despite belonging to the company's promising oil fields in Africa.

Citigroup analyst downgraded the shares to Tullow Oil to hold from buy.

price securities ArcelorMittal sank during trading on 3,5% after lowering guidance for the largest shares of world staleproizvoditelya experts BNP Paribas to neutral from above market. According to analysts, potential growth in steel prices, is limited.

Representatives of major steel companies, as well as industry analysts believe that the prognosis of head of ArcelorMittal, Lakshmi Mittal, that the world steel production in 2010 will grow at least 10% is too optimistic, the newspaper reported Financial Times.

Paper staleproizvoditelya Austrian Voestalpine lost in the price of 2%, the Finnish Outokumpu - 2,8%.

Cost

Endesa shares fell during trading on 5,5% after lowering guidance for experts UBS Securities Spanish power company to sell from neutral.

index of the largest enterprises in Europe Dow Jones Euro Stoxx 50 to 19:30 IST on Monday fell by 14.22 points (0.49%) - up to 2,873.02 points.

British FTSE 100 sank to 33.63 points (0.65%) - up to 5,139.26 points.

French CAC 40 index at this time decreased by 12.42 points (0.32%), amounting to 3,815.42 points.

Deutsch DAX lost 35.2 points (0.62%), amounting to 5,668.63 points.

17 of 18 major European stock indexes falling on Monday.

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From the attained levels of the market tries to recover today, returning to the zone of 1193-1202 points on the MICEX
At the evening session of the Middle FORTS futures for RTS index rose by 0,6%, to close the evening session at the 1198 20 points
Before the Fed meeting and the biggest listings on the market for U.S. Treasuries and the dollar on oil will experience increased volatility
Morning increase on domestic exchanges can be offset by reduced daytime
The immediate support for the MICEX index is in the range of 1130-1150 points, and resistance - 1190 points
Investors continue to win back some ideas, many of which are concentrated in the electricity segment

Scenario and forecasts