Market update by UWCFX

Trading Discussion News and Economy
62

[B]28.11.2011

Asia turns up
after red week[/B]

Asian stock exchanges were off for a good start of the week after rumors that IMF, the International Monetary Fund, seems prepared to give Italy an emergency credit on 700 Billion Euros. This created along with better sales during the American Thanksgiving at end of last week, a better market sentiment. Nikkei in Japan was up with 1,47 % and Hang Seng raised 2,02 %. The Euro is also strengthened. Euro/USD is up from Fridays lows, trading at 1.3306.

The possible IMF credit shall give the new Italian premier, Maro Monti, more time to refinance Italy’s huge debt. With increasing talk about a break up of the Euro, these news has injected some optimism in markets which have fallen up to ten consecutive days.

Oil prices and metals are up during morning’s trade in Asia. Gold trading at 1706 and up 30 dollars since Friday. NYMEX is at 98,40 and Brent 107,50. USD is considerably stronger against yen at 77,7643.

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06.12.2011

S&P plays politics prior to EU-summit;

EURO countries
downgraded

On the eve of the EU summit Thursday and Friday the US rating agency Standard and Poor has created new panic in
the markets by downgrading all members of the EURO including Germany and France. Germany is loosing its triple
A rating and France is degraded to AA. All EURO-countries are set under immediate economic surveillance. The S&P
decision would put increased pressure on banks and bigger companies also threatened by downgrading.

The news came just hours after Sarkozy and Merkel in a joint press conference announced agreement on how to
tackle the Euro-zone crisis. France and Germany are proposing a revision of the European Treaty to be ratified by
member states by March 2012. A part of the package is introduction of stronger budget discipline whereby immediate
sanctions are going to be taken against member countries not following its obligations. Monthly EU- meetings at top level
is also included and a more effective mechanism for the rescue of troubled sovereign economies.

The package was well received by the market. Europe and the US rose till S&P spoiled the party in late US-trading. After
listing impressing gains over the last weeks the Asian exchanges are steeply down. Oil prices are falling as precious
metals. Gold is falling 40 dollar from inter day high on yesterday.

The downgrading has put the Euro under increased pressure. Euro/USD is 1.3377. Speculators are watching the
EURO drama, and it is expected that the EURO shall be under constant attacks for weeks and months to come.
Japanese Yen is strengthened and trading at 77,76 against the dollar.

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07.12.2011

EURO remains firm
before key summit

EURO remained firm against the dollar (1.3426) in Wednesday’s morning trade in Asia as investors trimmed
their holding of positions considering whether to bet on a further decline in the common currency ahead of
crucial EU-summit on Thursday and Wednesday and European Central Bank (ECB) meeting on Thursday.

Market participants are closely watching any developments and new moves with eyes mainly on the
compromise package worked out between Merkel and Sarkozy indicating a rewriting of the European
Treaty. The rating agency Standard and Poor shocked markets yesterday with news that it intends to
downgrade all members of the EURO-zone.

While most concentration so far has been on Germany and France, Premier Cameron yesterday stated that
he shall veto any revision of the EU-treaty not in accordance with British interest. This tells
that the indicated Merkel/Sarkozy proposal by far is a foregone conclusion. Any transfer of power and
authority to Brussels shall most likely be met with fierce resistance from more nationalistic member
states.

Australian GDP grew 1,0 % from previous quarter and climbed 2,5 % from a year earlier. 0,8 was expected.
The better than expected figures supported risk sentiment and benefited higher yield currencies as the Euro.

A senior dealer at Barclays Bank in Tokyo claimed many investors seem to cover Euro/USD short positions
and that the ground appears to be firm in the 1,33 segment. In short term there is an upward bias versus
dollar. Euro/USD will likely continue to be volatile driven by any headlines prior to the EU-summit.

Oil prices have stabilized over the last 24 hours. Trend towards a stronger Yen continues; USD/JPY at 77,72.
Gold is trading at 1729 up from yesterday’s low at 1703.

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[B]08.12.2011

Short term EURO fate
hangs on the summit[/B]

The short term fate of the EURO rests to a considerable degree on the outcome of the highly anticipated end of the week meetings
in the European Central Bank (ECB) and the two days summit of European leaders Thursday and Friday.

There are strong rumors this morning that ECB shall cut it’s interest rate with at least 50 basic points from today’s
1.75 % level. This shall allow banks to pledge a wider range of collateral to borrow funds from the central bank and
to extend the duration of the long term lending facility to two or thee years.

These eventual measures might be seen as a prelude to the summit and as an effort to avoid a new global banking
crisis. Normally a cut in the interest rate is seen as negative to a currency, but this is not normal times. Markets
have factored a 25 bps cut. No action might therefore be seen as negative and lead to a steep fall in the Euro presently
trading at at 1.3407 versus USD.

In addition to ECB actions, Markets are expecting that the often fractious EU-group shall come up with a viable
program necessary to ensure progress in tackling the Euro-zone debt crisis. Merkel and Sarkozy seem to agree on
stricter budget discipline by transferring national sovereignty to Brussels.

The overriding challenge, however, remains to find a balance between harsh austerity measures and economic growth. Critics are
claiming that the proposals deal with the consequences and not the reasons for the crisis giving banks
closely connected with the political elites a free ride leaving the taxpayers once again to pay for their excesses.

Stock markets ended flat or in the negative zone yesterday. Futures are down as are markets in Asia. Oil prices striving to keep above the USD 100 level (NYMEX 100,55). Gold is stabile on 138.

66

[B]Market update – 09.12.2011

England blocks
EU-treaty revision[/B]

After a marathon session running into the early morning hours England blocked Sarkozy-Merkel’s proposal for a new and revised EU-treaty giving the European Commission more decision power on the cost of member states.
Premier Cameron made it clear the proposed revisions did not give England the necessary guarantees and especially not for its financial services industry.

Cameron stressed that England is not a part of the Euro-zone, and he sees the inflexibility of the EURO as mainly responsible for the financial crisis. He offers England’s support, but obviously see the EURO-crisis as primarily a problem for continental Europe.

An intergovernmental agreement between the 17 EURO-members seem in this situation to be the most likely outcome. To avoid the impression that ECB (European Central Bank) is acting as a lender of last resort, 200 Billion Euros is going to be transferred to the International Monetary Fund (IMF) to create an extra firewall to bail out EURO-zone countries like Spain and Italy fighting with big budget deficits.

European leaders tried after the meeting to give this outcome towards a two-tier Europe a positive spin.
Markets have reacted cautiously. The steep falls in futures seen through the night seem to have stopped for now.
Euro/USD is flat at 1.3325 while YEN continues to be strengthened versus USD at 77,59.

Oil prices have fallen more than two dollars on the prospects of increased uncertainty and slower economic growth. Last quarter result for industrial output in China shows that the dramatic growth seen for many years have come to a halt.
Gold prices which reached 1750 inter day yesterday, have been in free fall at present trading at 1708.

67

[B]Market update - 12.12.2011

Markets calm down:
Asia opens in blue[/B]

The Asian stock exchanges opened the week up on positive US macro numbers and some
optimism after last weeks EU summit. “The Michigan Consumer confidence” shows
growing consumer confidence to future development of US economy.

MSCI Asia Pacific Index is up 1,2 % with five shares up against one in red. In Japan is the
Nikkei up 1,2 %. Kospi in South Korea increases 1,48 %. The exception in Asia is Shanghai
Composites in China down 0,57 %.

The European Union summit which ended last Friday did not solve any fundamental
problems connected to the sovereign debt and looming bank crisis, but gave some
temporary relief which markets seem to have reacted positively to.

National budgets shall be subject to review by the EU Commission in an effort to
introduce stricter budgetary discipline. Membership countries which are not behaving
in accordance with strict rules might be subject to strict sanctions.

The British Prime Minister David Cameron rejected to support the final agreement
which might have opened for a revision of the EU-treaty. Any revision of the treaty
demands unanimous decisions. The proposed drafts are supported by the 17 Euro-members
and 9 of the other EU-members.

The EURO/USD is still under pressure this morning at 1.3356. USD/JPY is stabile at
77,62. Oil prices are stabile; NYMEX close to 99 and Brent trading in the interval
108 – 109. Gold prices are steeply down trading at 1691.

68

[B]Market update - 13.12.2011

Global markets drop
on EURO concern [/B]

After a couple of days of digesting the result of end of last week’s EU summit meeting, global markets are back in deep red. Instead of the summit leading to a relief Christmas rally, dark skies are back on the horizon. The sovereign debt crisis, a strong need for recapitalization of major European banks, a looming recession and the future of the Euro are back on the top of the agenda.

The EURO continues to be under strong pressure and reached a 10-week low versus dollar at 1.3198. EURO is also loosing ground versus yen, JPY dipping to 102,60. The markets are expecting that S&P rating agency already this week is going to follow up it’s threat to downgrade all countries within the EURO-zone.

Eight Spanish banks were yesterday placed under review for a possible downgrade by another rating agency, Moody’s Investors Services, adding strongly to the question marks and uncertainties in the whole banking sector.

Support at the 1.3150 mark for Euro/USD is vital. A clear breach of the mark can technically open the Euros downside to 1.2860 reached in January 2011. As long as the European Central Bank gives up it’s reluctance to purchase more euro-zone sovereign debt, the Euro seemed in for further dips.

In many financial circles there are increased concern about the austerity course chosen by European leaders. Strict austerity measures can according to many economists only lead to a repetition of similar mistakes European leaders made between the two world wars leading to mass unemployment and economic recession.

Markets all over the world are strongly down along with deep plunges in the gold and precious metal prices. Gold trading at 1651 with analysts forecasting steeper falls.

69

[B]Market update - 14.12.2011

EURO set to
dip further[/B]

The Euro was mostly flat in static Asian trading after tumbling over night to its lowest level in
nearly a year. EURO/USD at present trading at 1.3038. Traders see a further slide in the single
currency when no silver bullet is in sight for the Euro zone debt woes.

It seems to be only a question of time before the EURO falls through the 1.3000 mark and will
test the technical support level on 1.2860 seen in January 20011.

The negative EURO sentiment is likely to persist unless Germany and the European Central
Bank (ECB) step up their efforts to put an end to Eurozone crisis. Such changes are, however,
unlikely to occur within soon.

Under the present circumstances the EURO is expected to come under increased
pressure also from the yen. In October the Euro fell to a ten years low against the Yen at 100,77.

Japanese analysts predict that the EURO may fall as deep as to Yen 96. They predict Euro/USD
down to I,20; testing earlier low levels seen after the financial crisis in 2008.

Traders will today keep a sharp eye on the Italian bond auction and EU production data numbers
for October which shall be published as well.

Meanwhile stock markets are extremely volatile. Dow Jones went yesterday from plus 100 to minus 100
during the same session. Financials are under strong pressure.

MF Global’s chief executives could offer no reasonable explanation on where USD 1,2 Billion of client’s
money had disappeared. Possible major banks involvement were not conducive for a more positive sentiment.

OIL prices are still high (NYMEX 100 and Brent 109,75) waiting for outcome of OPEC meeting.
Gold and precious metals have retrieved somewhat after last days steep falls. Gold at 1638
up from yesterday’s bottom on 1622.

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COPPER (FEB. 2012) - Last week, it broke major support level of 410 and finally made a low of 386. Overall trend is bearish and sell on rise strategy. Now resistance at 399-400. Downside support at 380-373 to watch out, once break and trade below bears may show power.
NATURAL GAS - After a long gap, finally broke major support level of 170 and heading towards the 140-143 mark in coming days. Bulls must avoid to buy side.

71

[B]Market update - 19.12.2011

Fitch and Moody’s have
fired a volley across Europe…[/B]

On Friday, on December, 16th, after abundance before the various American macroeconomic data published during a week, the statistics of the USA has given out only one significant result. The consumer price index in November hasn’t undergone changes at expected increase on 0.1 % and after decrease on 0.1 % in October. Thus without foodstuff and energy carriers the increase in consumer prices has made 0.2 % against 0.1 % last month. In aggregate these indicators confirm FR’S statements that there is no serious inflationary pressure that allows it to continue to keep interest rates at exclusively low levels.

In the middle of day stock markets have painfully reacted and in the moment have fallen on negative territory after it became known that the international rating agency Fitch though has kept the higher credit rating of France ААА, but has changed the forecast on it with stable on negative and in addition has placed ratings of Italy, Spain, Belgium, Ireland, Slovenia and Cyprus on revision towards deterioration. Fitch motivated the actions by that the summit which has taken place on last week of EU in Brussels hasn’t promoted to the main task permission, despite acceptance of some positive steps on struggle against debt crisis in the Euro area countries. In turn, rating agency Moody’s, being guided by similar preconditions, has lowered a sovereign credit rating of Belgium on 2 points with АА1 to АА3 at the negative forecast of development of a situation.

The price for gold with has risen for 21.00 dollar or 1.3 % to value of 1595.60 dollars. Gold has risen in price owing to certain easing of dollar and as the price for a precious metal became again attractive to investors after decrease almost for 140 dollars following the results of 4 previous trading sessions. As a whole for a week loss has made 6.8 %.

Oil has gone down in price to the minimum mark since November, 2nd against concern in prospects of global demand for the energy carriers, burdened by the European debt crisis. In comparison with final level of last Friday oil has had loss in 5.9 %.

Today Ministers of Finance of the European Union countries will have a teleconference on which will discuss the further steps on overcoming of debt crisis of a Euro area. Representatives of 27 EU countries will discuss a question on bilateral credits of IMF and the EU countries, and also some points of the new tax agreement.

It is difficult to foretell a direction of the markets, undoubtedly that Christmas rally to which investors got used – this year won’t take a place.

72

[B]Market update - 20.12.2011

Pessimism still is present
in the market[/B]

On Monday, on December 19th, the basic American indexes were closed with a fall. After short trade in plus the market has rolled down against comments of Mario Dragi that economic prospects in the European region remain very uncertain, and laws don’t allow to increase purchase of bonds.

Article in Wall Street Journal about FR’s possibility to make to banks more rigid requirements to the capital, in turn, “has added fuel to the fire”, and the bank sector has appeared in leaders to decrease.

It seems that in Asia threats also accrue and situation every day becomes more and more heated. The basic indexes in Asia have shown negative dynamics yesterday. The death of the head of the North Korea Kim Jong II became one of the latest news, which has provided prompt falling at stock exchanges. According to investors, younger son of the dictator appointed as its successor, could be not strong enough to settle the unstable political situation observed in the country.

We will notice that problems of Europe remain significant news, which put pressure upon investors. Yesterday came news that additional 150 milliards are going to be released in order to help Europe to overcome debt crisis. Germany and France should make the greatest payments. The countries not entering into an Euro area, but being thus members of EU, are going to allocate funds to IMF too.

Prices of oil will be also considered as a significant fact. Oil prices has gone up and recovered a bit from the bottom levels and reached 104,02 dollars per barrel in price. Gold is picking up a little bit and is traded on a level 1600,19.

There are expected statistics from Germany and statistics on house building in USA – we will see if these numbers will have any positive or negative effect in the market.

73

For all this help, someone has to respond to you!
Thank you

74

[B]Daily Market Review

Wednesday, December 21, 2011

The positive on the American, Asian and
European markets can last not for long[/B]

After quite long time of corrections and large falling, yesterday has brought positive sentiments and growth on stock exchanges all over the world.

The European indexes have finished trading session in a green zone: British FTSE100 - +1,02 %, German DAX - +3,11 %, French CAC40 - +2,73 %.

The American stock exchanges have opened in plus. Moreover, in first half of day growth of the basic indexes has proceeded. Following the results of day, the American stock exchanges were closed positively. Yesterday, we have been mentioning upcoming statistics from USA - on Tuesday the following data has been published: the number of the given out building licenses of new houses in November has made 685 thousand, it was expected 628 thousand; the number of bookmarks of new houses in November has made 681 thousand while it was predicted 653 thousand. As a result: Dow Jones - +2,87 %, SnP500 - +2,98 %, NASDAQ - +3,19 %.

Oil of mark Brent 107,32 dollars/barr. The EUR/USD pair bargains close 1,312. Oil is strengthening and returning from the low levels of last week. Definitely, it is also giving positive support to the markets.

On the other hand, there is another set of the statistics to be issued: data regarding import from Germany and consumer trust index in Euro zone, data on oil and oil products in USA.

We shall admit that the positive on the American, Asian and European platforms, connected with optimistic macro statistics from the USA and Germany, can last not for long time. Moreover, investors could prefer to fix some profit already today.

75

[B]Daily review – Thursday, December 22, 2011

Today’s statistics on world economy
can become a push to growth of the markets[/B]

Yesterday pessimistic moods prevailed in the world markets, due to the results of granting of liquidity to commercial banks from ECB. Cost of loans is quite low - in this connection, demand has considerably exceeded the offer. The excessive demand, which has exceeded the forecast, has been regarded by investors as a signal about weakness of the European bank system. However, the American indexes managed to be closed in plus as the trading session was affected also by statistics on economy of the USA. Sales of the properties in November have grown on 4,0 % though the increase only on 1,9 % was predicted.

Signals from the raw market are more positive: Brent has tested $108 for barrel. Increase was promoted by announcement of the data on stocks of oil and oil products in the USA: stocks of crude oil were reduced to 10,57 million barrels, gasoline stocks - on 0,412 million barrels. The pair of EURO/DOLLAR was consolidated at levels a little above of 1,30, so signals from the currency market were neutral and didn’t render pressure upon raw platforms.

The potential growth on world indexes remains, the statistics on world economy, which will be issued today, can become a push to growth. There will be issued data about GDP of Great Britain in the afternoon and closer to trading session end - the traditional week data on unemployment from the USA and gross national product of the USA for III quarter according to the third, final estimation.

We shall not to forget that volatility in the markets is very high also movement can be in any direction, therefore it is necessary do not to make any hasty decisions.

76

[B]Daily Market Review
Friday, December 30, 2011

Better home sales
sent exchanges up[/B]

The number of pending home sales in US increased more than expected and created better sentiments in the markets yesterday. Dow Jones jumped 1, 12 % and reached 12 278 far above the psychologically important 12 000 level. NASDAQ was also up with 1 % to 2 613.

On a year basis Dow Jones is up 6 %; NASDAQ has tumbled 1, 5 %. Banks had a good day in yesterday. After earlier steep falls Bank of America was up 3, 3 %. Citi Group, JP Morgan and Wells Fargo increased likewise more than 2%.

Iranian threats to close the Hormuz straits are keeping oil prices high: NYMEX is stabile just below 100 pr.
Barrel and Brent is 108, 16.

Gold and silver prices have recovered after Wednesday and yesterday’s falls. Gold, which reached 1522 on the bottom in early US-trading, has recovered 35 USD trading at 1558. Silver is likewise up from yesterday’s bottom on 26, 10 trading at 27, 57.

In the currency markets continues to be under pressure. EURO/USD is 1.2942, a recovery, however from yesterday’s low on 1.2850. Japanese Yen reached a three weeks high versus USD at 77, 5065.

Yen also climbed against the EURO. Market expectations are indicate that traders will try to push JPY below the psychologically important Y100.

[B]United World Capital wishes all its traders a HAPPY and successful new year.[/B] It has been a difficult year with great challenges for traders. UWC hopes that our daily comments in that respect have been to some help and assistance.

77

[B]Daily update - 14.02.2012

Moody’s includes England
on credit “watch” list

British pounds are falling[/B]

The international credit rating agencies have busy times. Yesterday it was Moody’s turn to downgrade the creditworthiness of Italy, Spain and Portugal simultaneously putting France, England and Austria under “active watch”. Moody characterizes their credit perspective as “negative”.

This has led to a substantial fall in the British Pound vs. USD. The USD world index shows a general strengthening in the short and medium term for the USD. USD/JPY is trading at 77,9725 up 0,65 % basically due to last quarter’s report on a 2 % fall in Japanese GNP.

Moody’s downgrading of central EURO-members comes as no surprise, more or less in line with similar credit ratings done by other agencies. The most interesting is that England for the first time appear on thir credit watch list. Minister of Finance Osborne sees this as an active encouragement to continue the country’s drive towards ambitious austerity measures.

It is also likely that Moody’s downgrading would set the stage for a renewed debate on the very role of international rating agencies; are they really the neutral and objective observers as they would like market participants to believe; or do they have their own agendas as earlier strongly stressed by France and Germany, taking handsome profits for not even trying to play even handed?

Wrangling is continuing before EU Finance Ministers are meeting in Brussels tomorrow to decide whether the promised Greek government austerities are seen as binding enough. This comes among increased concerns on the effects of dramatic austerity measures: are they worth the price? All the Euro countries which have swallowed the medicine and as Greece have introduced harsh measures as Spain, Portugal, Ireland and Italy, have seen severe recession, fast climbing unemployment along with increased social unrest.

Monday’s securities markets were positive. Both Europe and US reacted favorably on Greece. The Apple share for the first time reached the USD 500 level; making the capitalization of Apple even bigger than the oil giant EXXON. The US market has risen for weeks. Analysts are voicing concerns, and stressing that Technical signals are pointing towards a correction.

Oil prices are flat this morning, while Gold is loosing ground dipping below 1720.

78

The relief rally in stocks lasted some few hours before markets were back in red.

79

[B]Daily Market Review
Thursday, February 16, 2012

EURO falls on
Greek wrangling[/B]

Assurances from the leader of the Euro-group, Jean Claude-Juncker that all necessary decisions regarding Greece shall be taken on Monday 20th, did not calm markets in today’s morning trading. The Euro is in free fall trading at 1.3017, down from high 1.3250 on continued uncertainties on Greece. This trend seems doomed to continue.

Written confirmations from the leaders of the the two big Greek parties assuring that they would continue to support the agreed austerities also after the parliamentarian elections in April, seem now to be in place. This along with agreements on how to cut an extra 310 M Euros in budgetary expenditures. This has, however, not been been sufficient to stop rumors that the leading EURO-countries now see Greece leaving the Euro as a foregone conclusion.

Remarks from the German Minister of Finance to his Portugal colleague has been seen as an assurance that the line goes with Greece. A Greek retreat shall not lead to further contagion inside the Euro-zone, and Portugal shall have the necessary backing. The general feeling is that especially the strong Northern European countries feel exasperated and more than willing to see Greece leave the Euro. Markets have consequently started to gamble on a Greek retreat.

The nervousness surrounding Greece is influencing markets. After heavy gains yesterday Asian exchanges lost ground in morning trading after both Dow Jones (- 0,76 %) and Nasdaq ( – 0,55 %) fall yesterday evening. Futures for Europe are down indicating that the promising New Years rally which have seen many exchanges jump 10 % , are running out of steam. Technical signals are pointing towards a correction.

Gold and metal prices which increased substantially yesterday have lost its gains. Gold is trading at 1720. Oil prices are going against the stream. Nymex is clinging on to the 101 – 108 level and Brent reached 118. The war of words going on around Iran still the main driving factor.

80

[B]Daily Market Update - Monday, February 20, 2012

Greek debt deal
expected today[/B]

Global markets have over the last days calculated into prices that a solution is going to be reached when the EU Ministers of finance meet in Brussels today. Asia was no exception. Markets were in a positive mood and added new increases to former gains. The composite Asian Stock-index is up one %.

The US Finance secretary, Timothy Geithner, added his voice in support for Greece bail-out when he during the weekend strongly encouraged The International Monetary Fund, IMF, to extend credit to Greece. He characterized the “bail-out” package on 139 Billion Euros as “strong and solid” deserving the support of the international community.

The proposed “bail-out” package is though offering little comfort to ordinary Greeks who again took the streets yesterday protesting against austerities which have driven their country deep into recession and mass unemployment. Many see the “bail out” rather as a support for European banks bringing no relief to a struggling nation. During the week end Spain also saw huge demonstrations against austerities organized by the trade unions.

In the wake of the minister’s meeting EURO/USD is trading on on 1.3214. Expect a relief rally and a stronger Euro when the package is eventually adopted. The Yen is considerably weakened after a huge deficit on their balance of trade figures were presented last week. USD/JPY is at 79,515. Of the smaller currencies Norwegian krones (NOK) continue to climb gaining both versus EURO (7,4886 and USD (5,6691) helped by increasing oil prices and and strong reserves.

Oil prices continue to climb. NYMEX is up 3 dollars from Friday trading at 105. Brent is consolidating above the 120 and trades at 121. Metals are up with Gold posting a 0,75 % jump to 1735. The tensions around the Persian Gulf continue. As a reaction to renewed sanctions, Iran has cut oil deliveries to France and Germany. If Iran follows up its threat to close the Hormuz straits, oil experts foresee dramatic jumps in crude prices possibly to above 200 barrel levels.

81

[B]Daily Update – 27.02.2012

The Summit has Come to the End,
but Questions Remained the Same[/B]

High appetite to risks remains in the markets, which helps indexes to be kept near yearly maximums. During weekends there were no any significant events, which could be capable to change an alignment of forces in the beginning of this week. At summit G20 the arrangement on possibility of allocation of additional funds of IMF has been reached, however it will be possible only if Europe will realize additional anti-crisis measures. According to the head of IMF, K. Lagard, it is a question of additional 500 billion dollars.

On Friday Government of Greece has directed the offer to private creditors on an exchange of bonds with reduction of their nominal value, now creditors have 10 days to consider this offer. The following provision has been included in the offer of an exchange: In case if 66% from total number of creditors will agree on “voluntary” restructuring - the remained bonds will be restructured compulsorily. In our opinion, it will have bad influence of the markets and fall of ratings.

Positive spirit remains in the commodity markets due to the upcoming LTRO: copper has returned to a level of 8.5 thousand dollars per ton; the oil of mark Light came nearer to a level of 110 dollars/barr., and Brent has finished week above a price of 126 dollars/barr., having updated a historical maximum. However, already today we can see some cooling in the commodity markets: the euro already is under symbolical pressure as expected in the middle of the week huge input of liquidity from ECB (on Wednesday), will break balance between dollar and euro. It is not excluded that probable correction on euro will have influence also on growth of raw actives.

From important events today, we are expecting news from Germany where the package of the help to Greeks should be discussed. However, it is improbable that the German parliament will refuse granting of additional funds to Greece. Therefore today, quite possibly, the markets will lie down in a side trend in expectation of events in the American stock market.