Analysis

	World financial market overview, April 28, 2008.

The further oil quotations’ rise is becoming rampant – the price has almost reached the level of 120 USD per barrel, which forced the European Commission to increase the inflation forecast to 3.6 %. Interestingly, these events are taking place along with the major update in gold – the prices have fallen below 900 USD per troy ounce, the minimum was indicated at 878 USD/ounce. But the industrial metals became more expensive, by the end of the Friday tender the only decline was observed with palladium – 2.55%. Shanghai bond index grew 20% last week, following the decision of the Chinese financial authorities to reduce the bond transfer tax. This didn’t break the descending trend and today the decrease has continued. The index has lost 34% since January. European and American bond indexes grew moderately at first, then the growth started to slow down, and now it can turn into a side trend or change into a rate decrease. On Wednesday, April 30, the US FRS will publish its decision regarding the rates, which are expected to be reduced only by 0.25% and the accompanying note will probably contain some hints at the soon-to-be abortion of the aggressive weakening of the monetary policy. This news will hardly be a pleasant surprise for those who buy paper securities on both sides of the ocean. On the eve of that most players will use the wait-and-see policy, preferring to save money, which will reasonably lead to a pause starting from Wednesday. By the end of the week the trades will probably be more active due to certain clearness, resulting from the FRS session finale. Overall, the American economy starts to benefit from the down-value USD; some manufactures come back to the USA resulting from the increase in service price of Chinese and Indian producers. However, this process has not yet been adequately shown in the outgoing economical statistics, since its priority is the past. Some analysts predict the soon ending of the mortgage crisis and the “worst part is over” mantra appears more and more often in the analytical publications within the bank sector. Moreover, the cautious “bottom-price” bonds acquisition becomes more widespread. So far it hasn’t resulted in any obvious quotes’ growth, but we will find out soon if those suppositions were too precipitate.