Analytics on 26/10/2017

On Wednesday, the stock indices decreased in the single dynamics and closed in the red zone. The Dow Jones slipped by 0.48% (23329.46), S&P 500 dropped 0.47% (2557.15), the Nasdaq fell by 0.52% (6563.89). European markets also went into a correction and closed negatively. The German DAX dropped 0.46% (12953.41), British FTSE 100 dipped by 1.05% (7447.21).

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 00:45 MSK trade balance of New Zealand for September
At 09:00 MSK the Index of German consumer climate for November
At 10:45 MSK a Speech the Deputy head of the RBA Debelle
At 14:45 MSK the Rate on Deposit facility in the Eurozone
At 14:45 MSK Decision on interest rates Eurozone
At 15:30 MSK Balance of foreign trade in goods report for September
At 15:30 MSK the Number of initial applications for unemployment benefits
At 15:30 MSK Press conference of the ECB
At 17:00 MSK pending home sales in the real estate market for September
At 17:30 MSK FOMC member the Kashkari speaks

Stock markets of the old world are falling with Pending the outcome of the ECB meeting. Today the European regulator will announce plans to curtail redemption of assets and the increase in the key rate. Market participants expect a relatively mild scenario of the ECB's exit from monetary stimulus measures. The European currency was heated by speculations around this topic, although it was recently in drawdown because of the situation in Spain, where events unfold while at the incomprehensible scenario, which creates additional risks. So the Euro growth is still limited.

In the U.S. stocks in correction, and the full situation is quite negative. In addition to quarterly report in focus of US investors it is still the tax reform of Donald Trump and the intrigue surrounding the appointment of a new head of the fed. Yesterday, one of the senators said that the U.S. President asked to the Republican faction to vote for one of the candidates, and the results of the majority of votes were cast in favor of John Taylor. This caused the strengthening of the dollar and rise in yields of US Treasury bonds prior to the March highs.

77% of companies who are the already issued reports for the third quarter showed profit higher than analysts ' expectations, which is quite a good indicator. Therefore a modest reaction of most of the indices, may reflect, on the one hand, the doubts of investors about future revenues, and on the other – the need to lay a higher refinancing rate. Still, the good news of recent months and the positive reports of the companies, means more likely that the fed will raise rates.

By mid-week, oil prices demonstrate the active growth despite the messages on growth of inventories in the United States. Now the prices are supported by the success of the OPEC+ deal for reduction of production. Also inspired by this, the Minister of energy of Saudi Arabia Khalid al-Falih said that the countries involved in the agreement will do whatever it takes for the market to achieve the target levels of inventories in the world. However, a technical correction is likely in the coming days.