World stock markets: News from China was the main reason for the reduction indices

 

Thursday, January 7, world stock markets showed mixed dynamics against the background of news from China and published macroeconomic statistics. Thus, the Chinese government declared that take measures to limit the pace of credit growth, which negatively affected the propensity of investors to buy.

Europe

European stock markets on Thursday"s outcome did not come to an agreement and ended the trading session with multidirectional dynamics. Thus, the regional indicator Dow Jones Stoxx 600 added less than 0.1%, French CAC 40 has grown on 0,2%, while the German DAX dropped to 0,3%.

Intra macroeconomic statistics wore a rather mixed. For example, retail sales in Germany in November decreased by 1.1%, while expected to grow by 0,2%, the index of consumer prices in Switzerland in December fell to 0.2% with a projected increase of 0.1% and retail sales in the euro area in November decreased by 1.2%, with the anticipated growth of 0,1%. Pleased investors, the European index of business climate, which in December increased from -1.56 to -1.22 points points. But industrial orders in Germany in November rose by 0.2%, whereas the previous month value of the index declined by 2,1%. Nevertheless, analysts were expecting a more significant increase in the reporting of the indicator.

Bank of England has kept a key interest rate at a record low of 0.5%, and also announced his intention to adhere to previously announced program to repurchase bonds.

 Shares of representatives of the telecommunications sector suffered the heaviest losses among the 19 different industries represented in the Stoxx 600 index. The reason for that was the statement of the fall of Verizon Communications profit up in 2009, as well as lowering of the rating industry analysts Citigroup to "worse than the market."

German retailers have also completed trades in the "red zone" after the release of data on retail sales in Germany in November. Thus, the paper Metro "thinner" at 4%, and Praktiker"s market capitalization decreased by 8,3%.

Quotes of the second-largest auto parts manufacturer Continental Europe jumped 13% after the banks, which included Deutsche Bank, Goldman Sachs Group and JPMorgan Chase, agreed to underwrite 31 million newly issued shares at a price of 35 euros each.

U.S.

U.S. stock index Dow Jones Industrial Average and SP 500 have demonstrated positive dynamics on the background of increasing retail sales and slower-than-expected growth in applications for unemployment benefits last week. Thus, the index of ICSC, which characterizes the chain stores sales in December rose by 2.8%, whereas the previous month value of the index fell by 0.3% and the number of applications for unemployment benefits in the past week increased from 432 thousand to 434 thousand when projected to increase to 447 thousand high-tech industries Index Nasdaq Composite failed to complete trades in the black following a statement by Google on a price increase proposed for a controlling stake in On2 Technologies, which has led to an increase in total transaction value by 20%.

As a result of trading indicator of blue chips Dow Jones Industrial Average added 0,314% to a level at 10 606.86 points, the index of wide market SP 500 rose by 0,400% to a mark at 1 141.69 points and the index of high-technology Nasdaq Composite fell by 0,045% to 2 300.05 points.

Shares of the largest U.S. operator of shopping centers Sears Holding were the leaders of growth, grew strong at 10.5%, after the company representatives said that they expect to increase profits for the fourth quarter.

Pleased investors and representatives of the financial sector, shares of which advanced to an average of 1.8% after Credit Suisse analyst upgraded the rating of securities Bank of America to "better market."

The greatest losses among the companies included in the index Dow Jones, stocks suffered a diversified manufacturer of products 3M, have lost about 1% after JPMorgan lowered the rating specialists securities of the company to "neutral".

Latin America

Stock markets in Latin America have demonstrated mixed dynamics due to the fact that limiting the rate of credit growth in China could adversely affect the prices of Commodities.

The Brazilian Bovespa index fell 0,39%, Venezuelan IBC has dropped to 0.57%, and the Colombian IGBC fell by 0,27%. Managed to close in the green zone only stock markets of Mexico, Argentina, Chile and Peru.

Papers Brazilian oilman Petroleo Brasileiro "thinner" at 0,9% against the background of cheaper oil.

Shares Cosan SA Industria Comercio fallen by 5,3%. The inclusion of the world"s largest producer of sugar in the list of companies with slave-like conditions of labor may cause a reduction of its customer base and reduce the amount of funding.

Asia

At the auctions in Asia on Friday, January 8, dominated by bullish sentiment against growth of the December retail sales in the United States.

Japanese Nikkei 225 index rose 1,09%, Hong Kong"s Hang Seng added 0.12%, while Australia"s SP /ASX 200 and the Chinese CSI 300 has been strengthened at 0,26% and 0,25% respectively.

Shares Li Fung, supplier of clothing to the stores Wal-Mart Stores, added 1.8% of the cost of rising retail sales in the United Statebe5s.

Market capitalization automaker Honda Motor, 44% of sales which accounted for markets in North America increased by 3,1%, but rates the biggest rival Toyota Motor rose by 2,9%. Analysts expect growth in demand for vehicles in the United States.

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