Market reviews and recommendations of "Brokerage house "Jazz Capital" JCS (Kazakhstan) analysts for July 12, 2011

/IRBIS, July 12, 2011/ -"Jazz Capital" Brokerage house JCS (Almaty, Real Invest Group) has provided IRBIS with a survey of main events, market reviews and investment ideas for July 12, 2011. - Bidding for major U.S. and European markets culminated in a sharp decrease of the indices. Debt problems of European countries on Monday once again came to the fore, but this time the source of anxiety were not long ago, "making a slip" PIGS countries, but large and seemingly having a stable economy the euro zone member - Italy. In particular, during the session strongly fueled speculation that the next stress test Italian banks with high probability of failure, in fact, some analysts suggest that as soon as Italy to fully adhere to Greece, Portugal, Spain and Ireland to form a new term PIGSI. Under the influence of such negative prospects, the market on Monday actively fixed income, which also contributed to the publication of weak economic data from Greece and Portugal. Thus, the first recorded in May 10% decrease in industrial production and a negative trade balance exceeded the second in May, all the most negative forecasts of the specialists and made 4.84 billion euros. Finally, as another negative factor, to put pressure on the players came over the weekend released statistics from China, this turned out much worse than the forecasts of specialists. American players, in the absence of significant macroeconomic statistics focused on the moods of their overseas counterparts, which resulted in a significant drop in key indexes. Following the session, the European sites have decreased in the range from 1.03% - up to 2.71%, reaching two-week lows, the U.S. Dow Jones and S & P 500 finished the session with fall by 1.2% and 1.81% respectively. Today, the players' attention will be entirely owned by "Federal Reserve minute", which resulted in market participants' hope to hear from the head of U.S. Central comforting speeches on the prospects of American and world economy restoration. - Venues of BRIC countries on the basis of the previous trading day significantly decreased in capitalization. Players from developing areas, intensively fixing profit, again on Monday have shown solidarity with their Western counterparts. It should be noted that, despite the common factors that influenced the attitudes and actions of market participants, the focus of regional players was somewhat shifted to left on the weekend of economic data from China. Statistics published in China as a whole was only slightly worse than analysts' expectations, but the key point is that the data showed mainly the situation of inflationary pressures in the country. Thus, the consumer price index in the second economy in the world in June rose to 6.4%, which was the significant increase of the past few months. In monthly terms, prices of consumer goods increased by 0.3%, which also surpassed the already negative analysts' forecasts at the level of 0.2%. Market participants, who feared such a development, against the publication of such economic data, focused on sales. An additional factor, putting pressure on the players on Monday, was the price of oil. - The cost of the next contract for the supply of oil barrel of North Sea Brent crude on the basis of past trade fell by 1.35% to $ 115.62. The negative general economic background that prevailed at the auction on Monday in most parts of the Earth, led to another correction of quotes of "black gold". Aggravation and even the formation of a new round of debt issue in several European countries, certainly made the contribution in their mood of the market traders of oil futures, but the key role on the opinion of the JSC "Brokerage House "Jazz Capital" as the factor that negatively impacted on the dynamics of quotations of the noble metal on Monday took the statistics from China, one of the key importers of energy. In addition, players in the last session were likely to continue to win back the publication of weak data from the U.S. labor market last Friday. Analysts of JSC "Brokerage House "Jazz Capital", indicate that prices for oil are down for second consecutive session, and up to two days of correction, the relative maximum discount of the week is already more than 2.5%. - The cost of an ounce of gold, at the end of last session rose by 0.46% to $ 1,552.1. Quotes of "precious metal" were perhaps the only representative of the most actively traded assets that were not affected by negative sentiments sweeping the players on Monday. However, it is possible that it is this very negative attitude of market participants in relation to the majority of the world's stock and commodity platforms, has led to increasing the attractiveness of "defensive asset", which is the ounce of gold. One way or another, but market players to "gold" futures managed to achieve long desired goals, in particular, the quotations of the "noble metals" were able to gain a foothold above the important psychological level of $ 1,550 per troy ounce. Analysts of JSC "Brokerage House "Jazz Capital" note that current prices for gold require a discount relative to the historical peak in the range of all-half, which under certain circumstances can be reduced to none in the very near future. Nevertheless, analysts of JSC "Brokerage House "Jazz Capital" recommend to refrain from opening long positions in gold, until the trigger for quotes of precious metal to their historic highs. - Currency pair EUR/USD on the basis of past trade fell by 1.61% to 1.3971. The cost of a regional European currency on the basis of the last session fell to the lowest in the last 3 months the values at the same time, probably was the determining penetration of "bears" a major psychological level at around 1.40. Another aggravation of the debt problems of the euro area, coupled with increasing uncertainty about market participants' perspectives of global economic recovery, led to the simultaneous decline of the euro, and increase the attractiveness of the dollar, along with a troy ounce of gold, which has the title of "defensive asset." Delivery of "bulls" of such important positions, which is the mark of 1.40 in view of JSC "Brokerage House "Jazz Capital" predetermines the further decline of the currency pair, however, given that the outcome of the last six sessions, the euro has declined by about 4%, it's possible that in the very near future we can expect a slight correction. - Currency pair GBP/USD up to the last session adjusted by 0.87% to 1.588. The British pound, along with his other European colleagues, on Monday declined in value against the U.S. dollar, and even managed to exceed the negative record of the pair EUR/USD, reaching the semi-annual lows. In the short term, analysts of JSC "Brokerage House "Jazz Capital" expect the decline of the British currency to continue, particularly this will be supported by the recent breakout of a strong support level, which is located at around 1.60. This material has exclusively information character and is not the offer or recommendation to make any transactions with the stocks. IRBIS Agency doesn't take responsibility for the opinions which are in this material. [2011-07-12]