European pre-market...
European Stocks Rose Despite on Debt Troubles in
Europe…
European shares hit their highest closing level in nearly
for last six weeks on Friday, with nuclear crisis in Japan
and intensity growth in the Middle East. The quantitative
easing (QE2) continues to support the world markets. Stock
markets worldwide have benefitted from monetary stimulus.
But markets may lose momentum in the run-up to the end of
the Federal Reserve's second round of quantitative
easing in June.
Financial stocks mostly have appeared under pressure. The
Bank index DJ EURO STOXX BANK was closed at level 180.09,
falling 0.47 percent. The Deutsche Bank shares have fallen
on 0.47 percent, BNP Paribas on 0.56 percent, Commerzbank
on 1.37 percent and Banco Santander on 0.93 percent.
The main European indexes rose. FTSE 100 gained 0.34
percent, to close at 5,900.76, DAX 30 rose 0.18 percent,
to close at 6,946.36, CAC 40 added 3.54 points, or 0.09
percent, to close at 3,972.38. Futures DJ STOXX 50 before
opening of the Europe at level 2,830.00 (-0.17 %). The
European stock markets will open weak decrease.
The FTSEurofirst 300 index of top shares rose 0.1 percent
at level 1124.65. Last week, the index added 3.4 percent,
the biggest gain since September.
Before opening of the European stocks market U.S. 10-year
T-Note at level 3.44% (+0.035), 10-year German Government
Bonds at level 3.28% (+0.035%), and 10-year U.K.
Government Bonds at level 3.61% (+0.031).
Oil prices were seen taking a breather on Friday following
the previous session's strong gains, with a military
campaign continued against Libya and news that Syrian
troops fired on protesters.
U.S. WTI crude (WTI) $105.16 (-0.23%) a barrel, while
London Brent crude (BRN) $115.46 (-0.11) a barrel.
Spot gold was last at $1,426.19 an ounce, down slightly
from Friday. It is now traded at level $1426.10 (-0.11) an
ounce.
In the Forex the dollar grows up. The euro has appeared
under pressure after German Chancellor Angela Merkel's
conservatives were routed in elections in a key state. But
as a whole pair EURUSD is above level 1.4000 because of
expectation of elevating of interest rates ECB in April.
The Forex slipped as problems in the Middle East and
Japan's nuclear crisis left investors with little
appetite for riskier assets.
US Dollar Index grows and is at level 76.61
(+0.16%).
Our forecast:
For euro this week the data on inflation (CPI) will be
important. If this data grows, it will convince
investors, that ECB will increase the interest rate in
April. We think that the euro remains under pressure.
On Events Next Week:
MONDAY: Personal income and spending, pending home sales,
two-year Treasury note auction; Lockhart speaks, Evans
speaks.
TUESDAY: S&P Case-Shiller home price index, consumer
confidence, five-year Treasury note auction, FDIC meeting
on mortgage rules; Earnings from Lennar before-the-bell;
Bullard
speaks.
WEDNESDAY: Mortgage applications, Challenger job-cut
report, ADP employment report, oil inventories, seven-year
Tresaury note auction, farm prices, Wal-Mart international
investor conference; Earnings from Family Dollar
before-the-bell and Mosaic after-the-bell; Bullard and
Hoenig speak.
THURSDAY: Weekly jobless claims, Chicago PMI, factory
orders, money supply; Lacker speaks, Tarullo speaks.
FRIDAY: Auto sales, nonfarm payroll report, ISM
manufacturing index, construction spending; Plosser
speaks.
By Sergey Kostenko, chief of analysis department Grand
Capital
kostenko@grandcapital.net
