Stock exchange news. Bear trends still prevail at the market. This includes shaky financial situation of Europe and civil claims from Federal Housing Estate Agency to largest banks. The latter fact has done serious harm to the financial sector. Gloomy spirit of investors keeps the major indexes within the “red” zone.
Speeches of Obama and Bernanke became the main events of the week. The report of American president brought some optimism, as he has suggested the sum of $447 bln. for new programs. However, all his suggestions are to be confirmed by the Congress, and it is not for certain that everything will go smoothly.
According to traders of Department of Portfolio Investments, major risks are currently concentrated in Europe, where claims about Greece quitting the European Union are being heard more and more. This sells short to Greek bonds, return on which is kept within the range from 20% for 10-year to 90% for 1-year bills. Demand for state papers keeps falling rapidly.
It is evident that in such condition it is extremely risky to enter long positions. The market currently needs a strong positive push, which is capable of breaking the negative trend that reins at the market. Until this happens there is time to have a closer look at some papers, estimate their potential, and work out trading plans for the future. The Department suggests to consider the following papers as such:
