Market Buzz: Focus on global growth, US Fed plans

On Thursday analysts expect Russian floors to open with moderate gains as buybacks of the biggest Wednesday losers occur. However with negative international sentiment and stalled oil prices, the market is likely to slip later in the day.

On Wednesday the Russian
floors slumped to 1360 points area. The MICEX ended the day at
1361.43, losing 2.6 percent, while the RTS closed at 1360.06
short of 2.8 percent. Equities of Russia’s major natural gas
company Gazprom slipped to a four-year-low, setting a new
anti-record, while the shares of Russia’s biggest bank — Sberbank
— fell lower than 100 rubles ($3) per share.

European stock markets also retreated on Wednesday. Investors’
sentiment was affected by global news, which pointed to weak
growth and rising bond yields. 

The losses came after the Organization of Economic Cooperation
and Development and the IMF lowered their global growth
forecasts. The International Monetary Fund cut its 2013 growth
outlook for China to “around 7.75 percent”, against previous
estimates of 8.0 percent in the world’s second-biggest economy
this year.

Meanwhile the OECD cut its growth forecast for the world’s
leading economies, except Japan. The organization however noted
that growth should pick up later this year. Unemployment in
Germany increased in seasonally adjusted terms in May, but the
labor market is continuing to hold up relatively well to the
eurozone debt crisis, official data showed on Wednesday. 

On growing concerns with global growth, shares in most European
markets fell. London’s FTSE 100 index of leading companies lost
1.99 percent to 6,627.17 points. In Frankfurt the DAX 30 lost 1.7
percent to close at 8,336.58 points, and in Paris the CAC 40
dropped 1.89 percent to 3,974.12 points. Stocks in Milan dropped
1.61 percent, while Madrid slid 0.82 percent.

Concerns with global economic growth and ongoing uncertainty of
the US Federal Reserve’s plans for unwinding its bond-buying
program sent the US stocks downwards Wednesday. 

The Dow Jones Industrial Average fell 0.68 percent to close at
15,304.64. The broad-based S&P 500 slid 0.7 percent ending at
1,648.50. The NASDAQ Composite dropped 0.61 percent to 3,467.52.

On Thursday investors will be eyeing US’ revised data on first
quarter economic growth, in addition to the weekly report on
initial jobless claims and data on home sales.

Most Asian markets fell Wednesday on growing concerns that the
Fed will be withdrawing its aggressive stimulus program soon.
Japan’s Nikkei 225 index fell 2.8 percent to 13,932.92. Hong
Kong’s Hang Seng lost 0.2 percent to 22,518.85. Australia’s
S&P/ASX 200 dropped 1.5 percent to 4,900.90. Benchmarks in
Singapore, Taiwan, Indonesia, and the Philippines also fell.
South Korea’s Kospi rose adding 0.2 percent to 2,005.99.

Already on Friday Japan is expected to release official data on
household spending and inflation as well as preliminary data on
industrial production, a leading economic indicator.

Oil prices have stalled, showing little movement this week. Brent
is currently trading 0.2 percent higher at $102.6, while WTI is
0.04 percent lower trading at $93.

This article originally appeared on: RT