Analytics on 20/10/2017

Yesterday stock indices have not demonstrated a single dynamics and closed the trading day in different directions. Dow Jones has grown on 0.02% (23163.04), S&P 500 added 0.03% (2562.10), the Nasdaq fell 0.29% (6605.07). European markets showed a decline in a unified dynamics. The German DAX dipped by 0.41% (12990.10), British FTSE 100 fell 0.26% (7523.04).

Today it is expected a few publications of the macroeconomic data and the speeches of the monetary authorities that could affect investors' decisions during the trading sessions.

At 09:00 MSK the producer price Index (PPI) Germany in September
At 09:35 MSK the President of the Bank of Japan Governor Haruhiko Kuroda speaks
At 15:30 MSK Base the consumer price index for September
At 15:30 MSK Base the retail sales index for August
At 17:00 MSK Sales in the secondary housing market in September
At 20:00 MSK the Number of drilling rigs from Baker Hughes
At 21:00 MSK FOMC member Mester speaks

The focus of investor attention was events in Spain. The story of the exit of Catalonia from Spain has been developed. On October 21, Saturday, it will be used of 155th article of the Constitution of the country, which will limit the self-government of Catalonia. After Catalan leader Carles Putteman said that regional Parliament can vote for a formal Declaration of independence if the Spanish government does not agree to the talks, convened a special meeting of the Cabinet of Ministers. After that, the investors decided to reduce risk and exit of the long position that was the main reason for the decline not only at the European but also at overseas markets. There is a possibility of continuation of this trend before the weekend, since the opening Monday can be a collapse.

Due to the external background, yesterday's opening of the American markets was with a strong gap down, but by the session end  indexes managed to recover thanks to the company reports for the quarter and macro statistic. Data on jobless claims, showed a marked decrease with 244К to 222К, while the index of manufacturing activity Philadelphia fed rose from 23.8 to 27.9 points at the forecast of decrease to 22.0. Only the leading economic index decreased by 0.2%, contrary to the expected rise of 0.1%.

Philip Morris loses of 4.0% of the capitalization after the report of adjusted earnings for the third quarter of $1.27 per share, which came out worse than expected at $1,38. Also quotes Alcoa dropped down for  2.35%. Adjusted profit of aluminum producer for third quarter is 72, compared to the forecasted 77 cents a paper. The operator of the payment system Visa announced an increase of dividend by 18%, since the beginning of the year shares of this company increased by 38%.

The decline of the oil market was caused by a possible restoration of the supply of oil through the Kirkuk pipeline in Iraq. Today it will be published the data of the number of rigs, and this will be in the focus of investors.