European premarket from Sergei Kostenko

 

ECB inspired markets 

 

European stock markets were closed on Thursday with a strong growth due to the decision of the ECB to conduct unlimited redemption at par in cooperation with private investors of short-term government bonds of troubled eurozone countries. The top gainers were the stocks of banking companies.

Index DJ EURO STOXX BANK up to previous trading closed at 104.37 (+5.93%). Shares of Deutsche Bank, Societe Generale and UniCredit soared from 7.06% to 8.14%.

 

Major European indexes at the close of the previous trading session: FTSE 100 - 5,777.34 (+2.11%); DAX 30 - 7,167.33 (+2.91%); CAC 40 - 3,509.88 (+3.06%). Futures on the DJ STOXX 50 in the morning  before the opening of trading in Europe is 2,539.00 (+0.79%). Trading in Europe will open growth of the major stock indexes.

 

European index of "blue chips" FTSEurofirst 300, closed on Thursday at 1,104.76 (+2.36%).

 

Before the opening of the European session US yield on 10-year T-Note is 1.69% (+0.009 NCP), the 10-year German Government Bonds is 1.57% (+0.004 NCP), and the 10-year UK Government Bonds is 1.71% (+0.070 NCP), the 10-year Spanish Government Bonds 6.01 (-0.103 NCP), 10-year-old Italy Government Bonds 5.27 (-0.058 NCP). The sharp decline in yields of Spanish and Italian government bonds due to the ECB's decision to actively and in unlimited quantities to buy their debt securities. This action is designed to create a stabilization of the European debt market.

 

Oil futures in London on the morning prior to the opening of the European trading session, moving in different directions after yesterday's growth against the decision of the ECB to actively participate in the purchase of short-term government bonds of troubled European countries.

Brent Oil (ICE) in morning electronic trading before the opening of Europe at 113.57 (+0.07%), and U.S. crude oil WTI (ICE) 95.37 (-0.17%).

Gold futures morning at 1,695.60 (-0.59%), quotes copper at 353.70 (+0.58%).

Commodity Index CRB Index for the previous trading day was 308.89 (+0.20%).

 

In the currency markets great support having the commoditys due to the strong growth in the Chinese stock market. European currencies and the yen are moving in a different directions in anticipation of employment data in the U.S., which will be published later.

Futures on the dollar index, which reflects the value of the U.S. currency against a trade-weighted basket of currencies, is 81.04 (+0.02%).

 

Prediction of the day:

If current data on employment in the non-agricultural sector of the U.S. will be worse than expected, it will be a good signal for the market to launch the Fed QE 3 this year, but it will undoubtedly have a negative pressure on the U.S. dollar. We are waiting for the release of statistics from the U.S..

 

Events today:

Moscow time

11.00 Switzerland foreign exchange reserves in August n / a; n / a; 408,6 billion francs

Volume 12.30 UK manufacturing output in July n / a; 2,1% m / m, -2.9% m / m

12.30 UK Producer Price Index in August n / a; 1,6% m / m, 1.3% y / y

12.30 UK expected consumer inflation n / a; n / a; 3,7%

12.30 UK industrial output in July n / a; 1,7% m / m, -2.5% m / m

12.30 UK Producer Price Index in August n / a; 0,3% m / m and 0.0% m / m

14.00 Germany's industrial production in July n / a; 0,1% m / m, -0.9% m / m

Canada 16.30 Number of building permits in July n / a; -1,5% m / m, -2.5% m / m

16.30 Canada Changing the number of employed in August n / a; 9.900; -30.400

16.30 Canada unemployment rate in August n / a; 7,3%; 7,3%

16.30 Canada Productivity Q2. 2012 n / a; 0,2% q / q and 0.1% q / q

16:30 U.S. Change in number of employees (excluding agriculture) August n / a; 121.000; 163.000

16.30 U.S. unemployment rate in August n / a; 8,3%; 8,3%

16:30 U.S. Change in average hourly wages in August n / a; 0,2% m / m and 0.1% m / m

18.00 Canada Business Index from August Ivey n / a; 64,5; 62,8

18.00 Assessment of changes in UK NIESR GDP from June-August, n / a; n / a; -0,2%

 

Sergei Kostenko