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ZSE: Another Day Without Stimulating News

As in the past weeks, the Crobex index of the Zagreb Stock Exchange could today move within a narrow range, with low trading volume, as there are no news from either the domestic or global economic scene that could significantly stimulate the market.

Of the 7 analysts from brokerage firms who participated in the Hina survey, 6 expect stagnation of the Crobex today, while 1 expects an increase. The Crobex index fell by 0.31 percent yesterday, to 1,760 points, while Crobex10 decreased by 0.34 percent, to 994 points. Regular trading reached 11.4 million kuna, which is approximately 3 million less than the day before.

– In the last week or two, the Crobex has been moving between 1,750 and 1,770 points, so I do not expect any significant deviation from that range today, as trading volumes are low, and there are almost no stimulating news from the domestic economy – says Maja Bešević Vlajo, portfolio manager at Podravska banka.

Some positive sentiment may spill over to the domestic market from abroad. On Wall Street, stock indices slightly rose on Thursday, but trading was cautious as investors are unwilling to significantly change positions ahead of the employment report, as well as due to the risk of the ‘fiscal cliff’. The Dow Jones index strengthened by 0.30 percent, while the S&P 500 rose by 0.33, and the Nasdaq index by 0.52 percent.

Asian stock markets also saw stock prices rise this morning, thanks to yesterday’s increase in indices on Wall Street, but also due to signs of stabilization in the Chinese economy.

– New directions for investors will be provided today by the key employment report in the US for November. It is estimated that 85,000 new jobs were created in the US economy, while the unemployment rate remained at 7.9 percent – emphasizes Bešević Vlajo.

Additionally, an important figure will be the German industrial production, which is estimated to have stagnated on a monthly basis in November, while it fell by 1.5 percent year-on-year.

European stock markets are trading cautiously this morning due to weak economic prospects for Europe. After the European Central Bank lowered its estimates for the eurozone economy yesterday, predicting a deeper recession next year than previously thought, this morning the Bundesbank lowered its growth estimates for the German economy.