Analytics on 27/10/2017

Yesterday stock markets of America have not shown a single dynamics and closed mixed. Dow Jones up 0.31% (23400.86), S&P 500 rose by 0.13% (2560.40), the Nasdaq dipped 0.11 % (6556.77). European markets showed growth in a single dynamics. The German DAX rose by 1.39% (13133.28), British FTSE 100 rose 0.53% (7486.50).

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 02:30 MSK Nationwide core consumer prices in Japan in September
At 02:30 MSK the Basic index of consumer prices Tokyo October
At 03:30 MSK the producer price Index of Australia for the third quarter
At 10:15 MSK speech by a member of the ECB Prata
At 15:30 MSK the U.S. GDP for the third quarter
At 17:00 MSK the Index of consumer expectations from the University of Michigan in October
At 17:00 MSK the Index of consumer sentiment from the University of Michigan in October
At 20:00 MSK the Number of drilling rigs from Baker Hughes

Yesterday the participants of the European markets were focused on the meeting of the European Bank. The regulator has announced a reduction of asset purchases by 30 billion euros. The ECB President Mario Draghi said that his Department is not going to rush to raise rates even after the stimulus programs. This decision was forecasted by investors, and helped the markets of Old world to show growth. Now it is clear that the regulator has chosen the best way, allowing him to further gently to reduce the QE. The European currency fell sharply against the dollar, reaching the support level 1,1625.

Against the background of this good news it is not possible to forget about the existence of negative factors associated with the situation in Catalonia. The Central government of Spain intends to dissolve the regional Parliament of Catalonia to hold elections and to suppress independence motion in the region. It is also known that the special forces of Spain arrived to Catalonia and leaders of the autonomous region can be declared guilt in state coup.

In Europe it is continued publication of quarterly reports. German pharmacist Bayer recorded a significant increase in quarterly profit, mainly due to the proceeds from the sale of Covestro. Deutsche Bank recorded a more than twofold increase in quarterly profit. In the third quarter, net profit increased from 256 million euros a year earlier to 647 million euros, while analysts predicted a value of 253 million Euro. Today it is expected the report of Volkswagen.

As in Europe, yesterday trading in the U.S. began on a positive side due to the quarter reports. ConocoPhillips and Xerox reported the results better than expected. The world's largest delivery service United Parcel Service (UPS) also showed growth. Ford Motor Corporation recorded a net profit of 63%. Today it is going to report Chevron, Colgate-Palmolive, ExxonMobil. Now the focus of attention of American investors directed to a vote of the budget draft and who will become the new head of the fed. At the moment there are two candidates in consideration, and one of them is very aggressive.

After the publication of the data from the Ministry of energy of the USA about growth of inventories, oil prices are under pressure. Despite this, the quotations do not depart from the spring highs. Support to the "black gold" is provided from the speech of the Prince of Saudi Arabia about that country's support for the extension of the deal of production freeze and a rise of dollar.