Novosti i prognoe: tržište kapitala od 10-01-2018

Major US stock indices fell slightly on Wednesday, interrupting the rally beginning of 2018, after the report that China could slow down or even stop its purchases.

Bloomberg News referring to people familiar with this issue, said that Chinese officials recommended that the government reduce, or even stop, the purchase of US sovereign debt. The report also notes that Chinese officials believe that US debt is becoming less attractive compared to other assets, adding that trade tensions between the two countries could be a reason for slowing or stopping purchases. "If China were not the largest foreign holder of US debt, it would not be a big deal, but it is," said Peter Buokvar, chief investment officer at Bleakley Financial Group.

A certain influence on the dynamics of trading was also provided by the US data. As it became known, import prices in the US recorded the lowest growth in five months in December, and the pressure of basic import prices was suppressed by a decrease in spending on food and consumer goods. The Ministry of Labor reported that import prices rose 0.1% last month after revised with an increase of 0.8% in November. This was the smallest increase since July and well below expectations of economists of a 0.4% increase.

In addition, wholesale inventories in the US grew slightly stronger than originally expected in November, suggesting that investment in inventories is likely to contribute to economic growth in the fourth quarter. The Ministry of Commerce said on Wednesday that wholesale stocks recovered by 0.8% after a 0.4% decrease in October. Last month, the Ministry of Trade informed that wholesale stocks rose by 0.7% in November.

Most components of the DOW index finished the auction mixed (17 in the red, 13 in the black). Outsider were shares of Intel Corporation (INTC, -2.57%). The leader of the growth of shares of General Electric Company (GE, + 1.99%).

Most sectors of the S & P index recorded a decline. The utilities sector showed the greatest decrease (-1.1%). The conglomerate sector grew most (+ 0.6%).

At closing:

DJIA -0.07% 25,369.13 -16.67

Nasdaq -0.14% 7,153.57 -10.01

S & P -0.11% 2,748.23 -3.06

U.S. stock-index futures fell on Wednesday, as investors digested a surge in bond yields, triggered by a report that China is considering slowing or halting purchases of U.S. government debt.

Global Stocks:

Nikkei 23,788.20 -61.79 -0.26%

Hang Seng 31,073.72 +62.31 +0.20%

Shanghai 3,422.14 +8.24 +0.24%

S&P/ASX 6,096.70 -39.10 -0.64%

FTSE 7,738.46 +7.44 +0.10%

CAC 5,501.05 -22.89 -0.41%

DAX 13,268.39 -117.20 -0.88%

Crude $63.44 (+0.76%)

Gold $1,321.10 (+0.56%)

(company / ticker / price / change ($/%) / volume)

Cisco Systems (CSCO) resumed with a Overweight at Piper Jaffray; target $44

Deere (DE) upgraded to Outperform from Sector Perform at RBC Capital Mkts

3M (MMM) target raised to $240 from $180 at Deutsche Bank; Hold

Boeing (BA) target raised to $347 from $328 at Drexel Hamilton

U.S. stock benchmarks on Tuesday afternoon finished at fresh records, with the S&P 500 and Nasdaq registering a sixth straight gain for 2018. The three main equity benchmarks have gained between 21% and 30% over the past 12 months, supported by factors such an expanding global economy, growth in corporate profits and enthusiasm over the Trump administration's tax cuts.

U.K. stocks closed higher Tuesday, with the blue-chip index setting another record as Wm. Morrison Supermarkets PLC helped lead gains in retail shares following its upbeat Christmas sales update.

Some Asian stock markets pulled back Wednesday morning, ending a big start to 2018 for global equities, though Hong Kong's benchmark climbed to a 10-year high.