Moscow. December 14. U.S. stocks fell sharply on Friday and for the week following the deep drop in oil prices amid persistently pessimistic sentiment in all markets, and prepare you for the final meeting of the Federal reserve system (the fed) this year.
According to MarketWatch, a reduction in Standard & Poor’s 500 over the past five sessions was maximum from August to 3.8%, while the implied volatility was amplified during the week, the VIX index increased by 64% to 24, and again exceeded the long term average of 20.
The Dow Jones Industrial Average lost last week to 3.3% and the Nasdaq Composite index was 4.1%.
The drop in the price of oil WTI with delivery in January has increased to 3.8% by the end of the session on Friday, the price of a barrel dropped below $36 – to the lowest level since the end of 2008. For the week oil prices have fallen 11% – the worst result this year. The index of companies in the energy sector in the US included in the calculation of the S&P 500 fell on 11 December by 3.4%.
“Friday sale felt panic, traders were very busy. Trading volumes were higher than usual, and were leading sellers, while the buyers, it seems, went on strike”, – said the head of Department of trading operations of ITG Brian Fenske.
Retail sales in the U.S. in November rose by 0.2% (the largest increase in four months) compared with October, while analysts surveyed by Bloomberg expected a gain of up to 0.3% from 0.1% in October.
While the November increase in the PPI in the USA was the highest since June of 0.3%.
The consumer confidence index in the U.S. in December 2015 has increased from 91,3 91,8 up to the point of maximum four months, according to preliminary data from the University of Michigan.
However, analysts polled by Bloomberg, expected a more significant growth rate – up to 92 points.
“The week was rough. All suggest that on 16 December we are waiting for a rate hike by the fed. I think it is too risky to open any large positions, but one thing is for sure – volatility in the coming weeks will remain high,” said the Fund Manager Miton Group Nick Ford.
According to futures quotations at the level of basic interest rates, the probability of its increase by the Fed at the meeting of December 15-16, is estimated by traders at 76%.
The stock price of DuPont hiscompany fell 5.5% after it announced the merger with Dow Chemical on equal terms. The price of securities the Dow dropped 2.8%. In the future, the combined company DowDuPont will be divided into three independent specialized business.
The deal is DuPont and Dow Chemical will be the largest in the history of chemistry, the total capitalization of the companies exceeds $130 billion.
Paper Chinese Internet giant Alibaba fell by 5.4% in new York. The company announced the acquisition of Hong Kong English language newspaper South China Morning Post.
Market value Adobe Systems Inc. increased by 2.8% due to positive quarterly reports: the profit in the fourth Fincastle nearly tripled, exceeding analysts ‘ expectations.
The Dow Jones Industrial Average at the end of trading on 11 December fell by 309,54 paragraph (1,76%) – to 17265,21 item.
Standard & Poor’s 500 index declined 39,86 points (1,94%), to 2012,37 item.
The value of the Nasdaq Composite decreased by 111,71 paragraph (2,21%) – to 4933,47 item.