First big news that hit investors on Tuesday, October 4th, were the news of Italy government bonds ratings’ downgrade by Moody to "A2" with a negative outlook from "Aa2," the result of high debt, a weak global economy and political uncertainties that delay corrective action. European indices reacted immediately with decline of 2%-4% and active investors started selling their riskier assets, including stocks of Ukrainian Agroholdings. UAIndex reflected this pattern with -6.13% decline in daily terms and active trade volumes for the smallest companies.

Later that day Ben Bernanke bluntly warned Congress on Tuesday of what most of America has sensed for some time: The economic recovery, such as it is, "is close to faltering." The central bank chief spoke on a day when the stock market spent most of the trading hours in bear market territory -- down 20 percent from its most recent highs in April. A late-day rally helped the market finish higher. Bernanke's exchange with lawmakers seemed to capture the growing belief that no one is prepared to help the global economy in any meaningful way anytime soon. Speaking in unusually frank terms, he also captured the nation's sour economic mood. He also stated that it is obvious that Europe has issues to deal with, yet United States in this case are seen as “innocent bystanders” and only help the country can offer Europe at the moment is the development of recovery plan known as Operation Twist.

We say that yesterday’s stock markets’ performance is a good example of how manipulative actions can easily cause panic amongst inexperienced traders. As panic wears off stocks will show growth. We go as far as stating that stock prices as well as European indices will show positive performance today, September 5th.

UAIndex