02.12.2013- All quiet on the Western Front
European stocks have finished the last trading session of the week with mixed dynamics. Labor market statistics in the 17 Euro area countries have pleased investors. According to preliminary data, the number of unemployed in October decreased by 0.1% to 12.1%. Analysts had expected no change. Furthermore, good inflation data was released on Friday. The consumer price index increased in November to 0.9%, the forecast was 0.8%. Another signal of economic recovery is that the international rating agency Standard & Poor's upgraded the outlook on Spain's debt from «negative» to «stable». At the same time long-term and short-term ratings of the country in foreign and local currency affirmed at «BBB-/A-3». It was quiet on the U.S. stock markets on Friday. Short working day after Thanksgiving, as well as sales of "Black Friday", led investors to defer decisions until later. Now broad index S&P 500 consolidates above 1800. Further movement of the market will depend on the data on the U.S. labor market, as well as from the publication of the Beige book on Wednesday at 19:00 GMT. Among the events that may affect the course of trading today, we should pay attention to Ben Bernanke's speech (13:30 GMT) and the index of business activity in the manufacturing sector in the U.S. (09:00 GMT) and Euro zone (14:00 GMT). China was in the focus on Asian markets. News about resuming IPOs in January, made China markets to decline. Investors fear that new issuers will take away capital from shares and instruments that are already traded on markets. The Japanese market is consolidating on the strengthening of the yen. Quotes USD/JPY are in the local lateral channel. We maintain a bullish outlook for the pair. The nearest support is at around 101.90. Australian dollar continues to correct. On this background the stock market the country decreases. Investors are disappointed because of the index of business activity in the manufacturing sector in Australia, which came out at 47.7 compared to 53.2 in October. The nearest resistance level is 0.92. The target of the further decline is 0.89. The British pound continues an upward movement. Strong growth on Friday was caused by the publication of the report on the housing market. The number of mortgage approvals in the UK rose in October to the highest monthly value since the beginning of the recession in 2008. The data came a day after the Bank of England said they would cut the mortgage lending support program to protect from possible overheating in the housing market. 67.7 thousands of new mortgage loans, have been approved in October against 66.9 in September. Price of a pound is at the upper limit of the upward channel. Correction is possible within the channel. We see the nearest support level at 1.6315. After a steady decline in recent weeks the oil prices are correcting on concerns that unrest in Libya will lead to a reduction in oil production of the country. At the same time, there are some factors that continue to put pressure on the quotations of oil. They are: increase of crude oil inventories in the U.S. on 35.8 million barrels, or 10%, over the past 10 weeks, lifting of sanctions against Iran and the possibility cutting down the quantitative easing program. We retain bearish outlook for oil in the long run. The nearest support level for Light sweet crude oil is at 92.00 dollars per barrel. Decline in gold prices has stopped. The price is outside the local descending channel. Growth is limited by the level of 1265. In case of further decline the target levels are at 1220 and 1200. Now the price of gold is pinched into a triangle. A strong movement is possible after exiting from this triangle. This morning, the mood on the world’s stock markets is neutral.