European premarket from Sergei Kostenko

 

The market expects the plan of salvation of Spain will be announced soon

 

European shares ended trading on Tuesday with a slight increase because of hopes that Spain will accept the financial assistance and because of the positive data from the U.S. consumer confidence, which came out better than expected. Overall, the picture in the market is still not unequivocal and unstable, causing a sharp rise of optimism and the same sharp drop him.

Index DJ EURO STOXX BANK up to previous trading closed at 108.64 (+0.97%). Shares of UniCredit, Societe Generale and Intesa Sanpaolo fell from 1.98% to 2.64%.

Major European indexes at the close of the previous trading session: FTSE 100 - 5,859.71 (+0.36%); DAX 30 - 3,513.81 (+0.47%); CAC 40 - 7,425.11 (+0.16%). Futures on the DJ STOXX 50 in the morning prior to the opening of trading in Europe is 2,535.00 (+ -1.02%). Trading in Europe will open the fall of the major stock indexes.

 

European index of "blue chips" FTSEurofirst 300, closed on Tuesday at 1,119.79 (+0.36%).

Before the opening of the European session US yield on 10-year T-Note is 1.67% (-0.001 NCP), the 10-year German Government Bonds is 1.58% (-0.057 NCP), and the 10-year UK Government Bonds is 1.82% (+0.005 NCP).

Oil futures in the morning before the opening of the European trading session down against yesterday's correction in the U.S. stock market and the fall in Asian markets. The main reason for the increased volatility in the market is the end of the fiscal year, which lead to chaos in the markets.

Brent Oil (ICE) in morning electronic trading before the opening of Europe at 109.77 (-0.62%), and U.S. crude oil WTI (ICE) 90.67 (-0.77%).

Gold futures morning at 1,765.30 (-0.06%), quotes of copper at

373.95 (-0.51%).

Commodity Index CRB Index for the previous trading day was 306.71 (+0.25%).

 

In the currency market continues withdrawal of investors from risk. The U.S. dollar is supported because of persistence of Spain in adopting financial assistance. Tomorrow will be presented with a plan for Madrid to get out of the crisis. But in spite of this market has no faith in its success.

Futures on the dollar index, which reflects the value of the U.S. currency against a trade-weighted basket of currencies, is 79.88 (+0.33%).

 

Prediction of the day:

EURUSD pair may continue to decline to the level of 1.2800.

 

Events today:

Moscow time

during the day Germany Preliminary CPI September n / a; 0,0% m / m, 0.4% y / y

12.30 Review of UK credit conditions of the Bank of England

14.00 UK Realized sales according to CBI September n / a; 6, -3

18.00 U.S. sales in the primary market in August n / a; 381,000; 372,000

18.30 U.S. Crude Oil Stocks for the week September 16-22, n / a; n / a; 8,5 million barrels.

 

Sergei Kostenko