FUNDAMENTAL REVIEW 08.11.12

 

Obama was chosen, the problem remains ...

 

Obama's victory was quickly played for investors and markets tumbled yesterday amid expectations due to the unresolved political contradictions of Democrats and Republicans, the problem of "tax break." These concerns relate to the fact that the majority of Republicans in Congress will do anything to spite Obama. The apparent continuation of the status quo in politics and economics upsets markets as they continue to fail to see the output to resolve political differences between Republicans and Democrats. Investors continue to doubt the capabilities of the new administration to make a difference. Against the background of these issues 10-year government bonds yields fell to 1.675%, the lowest level since July.

 

In this connection may be positive news of Obama's decision to meet next week with the Senate to agree on measures to prevent the "fiscal collapse".

 

An additional negative factor in the markets is another battle in Greece around the adoption of decisions by the Parliament of austerity measures to get the next tranche of financial aid. But as it became known, albeit by a slim margin, but it's still a decision was made, which is a positive point.

 

Today investors will be focused on the news out of Europe. It is expected that interest rates in Britain and the euro zone will remain the same. Interesting will be a press conference by the ECB, as well as data on applications for unemployment benefits in the U.S., which will be published later.

 

In general we can say that the period of uncertainty in the markets will not end with searches the U.S. election season.

 

Statistics today:

Moscow time

13.30 UK trade balance in September n / a; -9,1 billion pounds -9.3 billion pounds

16.00 UK asset purchase program in November n / a; 375 billion pounds, 375 billion pounds

16.00 UK decision of the Bank of England's interest rate in November n / a; 0,50%; 0,50%

16.45 Eurozone ECB's decision on interest rates in November n / a; 0,75%; 0,75%

17.15 Canada Construction October n / a; 215,000; 225,000

17.30 Canada September trade balance n / a; -1,4 billion; -1.1 billion

17.30 Canada price index on the primary market in September n / a; 0,2% m / m and 0.2% m / m

17.30 Eurozone ECB press conference

17:30 U.S. September trade balance n / a; -44,9 billion; -44.2 billion

17.30 U.S. The number of applications for unemployment benefits for the week 28.10-03.11 n / a; 373,000; 363,000

19.30 U.S. natural gas reserves for the week 28.10-03.11 n / a; n / a; 65 Bcf.

22.10 Presentation of the Bank of Canada Canada's Carney