Market reviews and recommendations of "Brokerage house "Jazz Capital" JCS (Kazakhstan) analysts for November 17, 2011

/IRBIS, November 17, 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 November 17, 2011. "Jazz Capital" Brokerage House notes the following significant events on international markets: - On Wednesday, the stock market in the United States ended the trading session significantly reducing the indices, while Europe was closed in the "outset". Since the beginning of trading in the U.S. market over hanging clouds sailed from Europe - the Bank of England Governor Mervyn King noted a significant deterioration in the economic outlook in relation to the European crisis, German Chancellor Angela Merkel has expressed willingness to give up a certain percentage of sovereignty in favor of strengthening economic and political EU relations, which in itself is an indication of the extremes to which the situation has reached with the European debt. Retreat of the stock market also contributed to the rating agency Fitch comments that the U.S. banks are directly exposed to potential losses relating to Greece, Italy, Spain, Ireland and Portugal, and that further turmoil in these markets represent a serious threat to the U.S. banking sector. Against the background of such news in the financial sector has left a profound disadvantage. Published in the bidding macroeconomic statistics in general was favorable, but the market has left it unattended. Industrial production in October increased by 0.7% compared with the forecast of 0.4%, 0.2% growth in the September, consumer price index seasonally adjusted last month retreated by 0.1%, which demonstrates the decline in inflation pressure and the possibility of further monetary easing. The index of blue chips ended the session in negative territory by the full, including lost more than 2% Alcoa, AIG, Boeing, Citigroup, JPMorgan, Walt Disney, etc. The financial sector in the broad market index against the comments of Fitch looked worse than ever. In particular, shares of Morgan Stanley and Citigroup have lost 8% and 4.1% respectively. The third-largest computer maker Dell dipped 3.2% after it reported quarterly sales weaker than Wall Street expectations, but profit excluding some items was higher than forecast. Stock trading in Europe were closed lateral movement in the leading index, as investors do not dare to make active steps against the backdrop of worries about the prospects of overcoming the fiscal and debt crisis in the eurozone. Market participants fear that the negative trend will increasingly impact on Italy and then spread to France and Spain. Yield of government bonds of the three countries show growth. In addition, there were reports from the central bank of Great Britain on a possible deterioration in world economic growth forecasts in the event of further development of the crisis in the eurozone. Shares of German Infineon Technologies, the second largest European manufacturer of semiconductors, fell 4.78% after the company reduced its forecast for sales in 2012. Paper German automakers Bayerische Motoren Werke and Daimler have gone into the "red" zone by 3.8% and 2.1% respectively against the background of general decline in productivity in the industry. The value of shares of French media conglomerate Vivendi rose to 5.56%, adjusted net profit for Vivendi in the first 9 months of 2011 increased by 13.8% year on year and amounted to 2.519 billion euros. - Major stock indicators emerging markets have shown negative trend. Investors do not cease to worry about the fate of Italy, because bonds of one of the largest economies in the eurozone again traded at a yield above the critical level of 7%, while on the stock exchange there is no clear assurance that the new prime minister, Mario Monti is able to successfully cope with leaning on his problems. Negative impact on the outcome of trading, in particular on the Stock Exchange of Hong Kong, had news that the IMF stated that "fast" growth in lending in Hong Kong increases the risk of increasing the amount of 'bad' debt in banks. - Gold. The price of gold at end of trading on COMEX has fallen by 7.90 dollars or 0.4% to a value of 1,774.30 dollars per troy ounce. Short-term investment attractiveness of gold as a zone of anti-inflation investment decreased as a result of strengthening of the dollar in the basket of world currencies. - Oil. Prices of oil futures of Light Sweet and Brent at auction on Wednesday declined. Negative dynamics of prices is largely due to the situation on the international currency market Forex. Dollar since the beginning of the day has grown considerably against the euro and other currencies, creating an unattractive environment for purchases of oil and other commodity assets whose prices are set in U.S. currency. The dollar index for the six major world currencies has increased since the early days by 0.7%. - Currency. The main outsider, of course, is the euro, which is losing ground to the dollar, the pound and the Japanese yen: the problems in the euro area continue to keep investors on their toes. Now, the euro/dollar is trading near 1.35, but may be adjusted slightly by the end of the week due to the closure of speculative positions. Resistance levels are at 1.3650 and 1.3850 marks. If the couple lingers below 1.35, then the first support level is at 1.3370, the second - about 1.3230. This material has exclusively informational 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. [2011-11-17]