Market Review

On Friday, the continued growth of quotations on the world stock markets. From its local minimum October 15, S P 500vyros by 8.4%, the biggest increase since December 2011. As expected, the US economic data on Friday were mixed. Personal income and spending fell and indexes of business activity in Chicago and consumer confidence from the University of Michigan - have grown.

We believe that the overall growth of quotations on US exchanges could contribute to the good quarterly reporting of large companies Exxon Mobil (shares went up by 2.4%) and Chevron (+ 2,3%). the volume of trading on Friday was 7% higher than the average for the month and amounted to 8.3 bln. shares. To date, we reported already about 70% of US corporations. In general, their income is greater than the preliminary forecasts. Through this index S P 500 and the Dow Jones industrial historical highs last week. The US dollar index also rose markedly. Meanwhile, in our opinion, the strengthening of the US currency may reduce the financial performance of corporations. We do not rule out that the dollar and US stocks will move "in opposition" and the plan to create a PCI for the practical use of such assumptions. Today in the US in 14-45 CET will be released PMI index of manufacturing activity for October, calculated Markit agency. A 15-00 SETH official ISM Manufacturing Index will be announced well in October and construction spending in September. Besides performances by two regional Fed. In general, in our opinion, the preliminary forecasts are slightly negative, and do these indexes are not so important that market participants would continue to actively buy shares at all-time highs.

FTSE100, Weekly

Last week, the pan-European stock FTS Eurofirst 300 index showed a maximum growth since December 2013, gaining 3%. Significant macroeconomic data has not yet been, the ECB also did not say anything significant. Increase in prices occurred in line with the global trend. It should be noted that the Bank of England increased leverage for the Scottish banks. Quotes Barclays Bank increased by 8% and the Royal Bank of Scotland - by 7%. Today, European stock indexes slightly adjusted downwards. corporate reports look weaker than in the US. Reported 67% of European companies. Indicators 58% of them matched or exceeded preliminary forecasts. In the US, such companies 75.8%. Today in the 12-00 and 14-00 CET are expected to address the members of the ECB's board of directors.

Japan's Nikkei index rose strongly on Friday. For more on this we have written in the previous review. Today, most financial institutions in Japan, does not work because of the holiday - the Day of Culture.

commodity futures reacted to falling slightly negative macroeconomic data from China. Reduced manufacturing activity index in October exceeded forecasts (51.2) and in reality, it was 50.8 points. Note that at its value above 50 the general tendency to growth.

Wheat, Daily

grain futures are adjusted downwards after a strong growth in October. Thus, the increase in maize prices in the past month by 18% turned out to be the highest since July 2012. In addition to the economic slowdown in China, the correction grains contribute to meteorological forecasts of warming in the United States, as well the forecast growth of the crop from the International Grains Council (IGC). At the end of October in the United States it was removed only 46% of the area under grain, which is considerably less than the average for the five years of 65%. IGC expects that the global corn crop in the current year will amount to 979.7 million tons, and wheat -. 717.6 million tons.. Compared with the previous forecast, the yield of corn increased by 6 million tons of wheat -. 1 mln. Tons. However, we note that in spite of this, according to CFTC data for the week, hedge funds have increased the number of items to purchase (net long) of maize and reduce the amount of net short positions (net short) wheat and soya. Also reduced net positions (net long) for the purchase of cocoa and coffee.