S&P500 refreshed its historic high again | IFCM UAE
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S&P500 refreshed its historic high again - 20.6.2014

The world stock markets saw a slight increase in prices yesterday. American S&P 500 refreshed its historical maximum once again. However, its growth was only 0.13% in daily total.

The trading volume on the U.S. exchanges was 7.4% above the monthly average and totaled 5.8 billion shares. The economic data on Thursday were good. Average number of new unemployed people within weeks is still near the 7-year low. The PMI calculated by the Philadelphia Fed was the highest for nine months and totaled 17.8 points in June. Today the U.S. is not going to hit the market with any significant economic news.

The U.S. futures indexes are significantly down now. Perhaps investors are scared about the U.S. plans to send the troops to Iraq. In this regard, we do not exclude significant decline in European stock indices that are traded neutrally for now. We expect the Consumer Confidence in the EZ for June to come out at 14-00 СЕТ. The preliminary forecast is positive, which probably supports European equities. We should note the powerful lowering in volatility, not only in the U.S., but also in the EU markets. The Volatility Index (Vstoxx), calculated on the basis of the Euro Stoxx 50 fluctuations, closed yesterday at the lowest level since November 2006 (12.7 points). Technically, the lower volatility may precede the trend change.

Japanese Nikkei updated its 5-month high. This was due to positive global trends as well as internal events in Japan. This morning, there was the Bank of Japan Head statement, where he noted a good economic tendency. There was a new act established in concern to the real estate restoration rules, stocks rose thanks to the Japanese real estate companies. Note that on Monday, there will still be the economic data coming out from Japan. In the morning, we will see the PMI manufacturing for June at 1-35 CET. We believe that it can support the Nikkei, if it exceeds 50 points.

As it was expected, there was a massive increase in the Gold and Silver prices yesterday. The daily increase in the Gold prices was the highest since November 2012. Besides the day fixing cancellation, this contributed to the U.S. plans to send the military advisers to Iraq, as well as the worsening of the political situation in Ukraine. The Fed's decision to have the U.S. interest rates, stuck virtually at zero until the end of this year, had an impact. Recall that the UK regulators and the U.S. suspected the current participants fixing to manipulate the Gold and Silver prices. It is assumed that the new system will make the precious metals market more transparent .

нефть - Brent

Note that the European Brent also keeps growing due to the war in Iraq. The NATGAS rose slightly today. After two years of discussions, the U.S. government allowed the Sempra Energy company its exports from the country.

медь - Copper

Along with precious metals, the Copper has also risen, which is used as collateral for commercial loans in China. Thus, it is also a part of the reserves. Another positive factor for the Copper was the suspended exports from Indonesia. The government of this country is going to increase taxes. Note that the production and export of copper in Indonesia carried out by American companies such as Freeport-McMoRan Copper & Gold and Newmont Mining. The government is struggling with them for the right to export non-ferrous metals beginning from 2017.

какао бобы - Cocoa

Besides Copper, Indonesia plans to increase export duties on Cocoa beans (the third largest producer) to reduce supplies to the world market. It supports the quotes. Indonesia increased the capacity of the processing the Cocoa beans for the year by 85% to 600 thousand tons, and wants to make its own chocolate instead of exporting raw materials. According to the International Cocoa Organization forecast, the cocoa crop in the country will be only 410 tons this season and it is the lowest level since 2002.

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