The Dow Jones Industrial reached a record high

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Again yesterday we saw two new high – one of the Dow Jones Industrial Average, which literally sought to exceed 27 000 points, but he failed, and closed it on level 26 828,39 points. In parallel with it grew and the Index of wide market S&P 500, which, true to the closing of the trading day, remained in the “zero”, that is, at the level of 2 925,51 points. But the Index high-tech NASDAQ companies hit the “sweet spot” between them, and increased at the end of trading on wall Street by 0.32% to reach 8 025,08 points.
However, this growth was accompanied by rising yields in U.S. debt obligations, growing their profitability as increased sales of American sovereign debt, which, incidentally, exceeded the extreme levels this year and this morning we see on 10-year treasuries yields at 3.20%, we Can say that the sovereign debt markets of the developed markets are on the verge of hysteria – the yield of ten-year us treasuries soared to the level of 3.21%, hitting a new high this year, but reaching its highest since 2011.
I think the process is just beginning and indigenous debt markets are still only at the beginning of the panic. The fact is that if the summer was dominated by sales in emerging markets, it is now the turn of developed and basic.
Apparently, the global players believe in the inviolability of the policy of the fed and their desire to further increase the cost of funds in the U.S. economy and financial system, which is not surprising on the background of yesterday’s strong macroeconomic data on employment and confidence indicators in the manufacturing sector. In the end, as already written, all the economic publication of the Dow Jones Industrial Average has at the end of trading the historical record 15th time in the current calendar year.
Plus positive news from Italy calmed the fears of investors, and they were euphoric demand for us assets by swapping them with debt obligations of the United States on shares of U.S. corporations. Oil behind the optimism in the stock market marched to new heights and resulting in morning trading we find with marks 76.25 oil WTI and 86,25 mark BRENT.
Despite the holidays in China foreign exchange Chinese currency market never sleeps as wall Street, hard work, global investors who don’t wait in China over the weekend and the markets outside of Beijing work, most notably that offshore yuan continues to trade and rapidly depreciates against the U.S. dollar.
On the Russian stock market yesterday was also a day of records. Shares of “ROSNEFT” for the first time in its history reached the level of 500 rubles per one share and the Index of the Moscow Exchange at yesterday’s auction showed investors a level 2 0501,78 points, which is a new absolute maximum. However the closure of the Russian market was slightly lower on level 2 493,91 points, which is also the maximum daily closure of the Russian market. Leaders of growth of the Russian market were the shares of such companies as MMK (+4,46%), Gazprom (+of 4.23%), “Rosneft” (+4,19%), “Yunipro” (+3,26%), “NOVATEK” (+3,21%) and NLMK (+3.08 per cent).
Growing up, the Russian stock market domestic foreign exchange market led the total external attitude to the purchase of U.S. dollar retreated somewhat in the strengthening of the ruble. The morning of the day we will see a continuation of the trend to buy American currency, even despite the growth of oil on world commodity market. Yes on the raw materials market are also the maximum values for the last 4 – 5 years. Investors are afraid of uncertainty with the Iranian sanctions and that pushes oil prices to new heights together with the stock markets.
The most interesting will be next week – to return to the Chinese market after the weekend. And then the music starts with new strength and new chords are clearly exciting.
Roman Blinov,
Head of analytical Department,
“International financial center”