Analysis

	World Markets Summary of April 21st, 2008.

The continuing decline of the dollar, write-offs of the major banks due to the American mortgage crisis, the increasing crude oil prices – these topics remain the same in spite of an interruption in the summary publications. Only two events stand out. On Friday a typical "carry-off" of the dollar bears occurred as the gold price dropped from 947 to 904 dollars per ounce. The trend started on Thursday. The price went from the key resistance of 954 to 937 dollars per ounce. After a 10-dollar correction on Friday the price dropped by 43 dollars. The Euro-dollar rate followed the same pattern. As a result, after a new record of 1.5984, the rate dropped to 1.5710 by Friday evening. However, on Monday the rate went up again to 1.5920. Consequently, the gold price rose over 924 dollars per ounce again. The crude oil price is trending smoother. It is smoothly rising. The price of one barrel of Brent oil is over 114 dollars. OPEC refused to increase oil production, which could be expected. The price is not likely to drop below 100 dollars per barrel in the near future. The statistical data on the American economy leave no doubt – the recession has started. Now the only question is how long it is going to last. The US stock markets closed on Friday with a decent increase - Dow + 1.8%, S&P 500 + 1.8%, NASDAQ +3.2%. On Tuesday new information on the American real estate market is expected to be made public, which is not going to bring optimism to investors. It is too early to talk about overcoming the crisis. No future negative information or news of write-offs will bring enthusiasm to stock buyers. The expectation of a further rate reduction makes the stock indexes grow, the statistics, however, will lead to short-term and sharp depressions.