On Thursday, the stock indices showed explosive growth in the single dynamics and closed at new highs. The Dow Jones jumped by 1.39% (24272.35), S&P 500 soared 0.82% (2647.58), the Nasdaq rose 0.73% (6873.97). European stocks has not demonstrated a such optimism, and reduced to a single dynamics. Germany's DAX slid 0.29% (13023.98), British FTSE 100 declined 0.90% (7326.67).
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 the Nationwide core consumer prices of Japan
- At 11:55 MSK the Index of business activity in the manufacturing sector of Germany
- At 12:30 MSK the Index of business activity in the manufacturing sector in the UK
- At 16:30 MSK the Change in employment in Canada
- At 16:30 MSK Canada GDP
- At 17:05 MSK FOMC member Bullard
- At 17:30 MSK FOMC member Kaplan
- At 18:00 MSK the Index of business activity in the U.S. manufacturing sector from ISM
- At 18:00 MSK the Index of employment in the U.S. manufacturing sector from ISM
- At 18:15 MSK FOMC member Harker speaks
- At 21:00 MSK the Number of drilling rigs from Baker Hughes
During the day, European stocks tried to rise, but after the publication of macroeconomic statistics in the Eurozone fell and closed lower by the end of the day. Inflation rose only up to 1.5% in November, which was worse than expected by market participants of 1.6%. Now the ECB does not give false hopes and predicts that the inflation target of 2% can only be executed within three years. Germany showed a significant drop in retail sales in October. The number of unemployed declined more-than-expected for November.
Profile Committee of the Senate of the United States Congress passed a bill the most significant in the last 30 years changes the tax code by endorsing the reform proposed by the administration of Donald trump. Thus, the bill is progressing in accordance with expectations of investors. This is the main driver of growth in the American markets. Yesterday markets are already opened up with a gap at half a percent and continued to grow. Support to customers was provided by data on the labor market. The number of initial applications for unemployment benefits dropped from 240 thousand to 238 thousand.
Over the past two days, gold prices went down by $20 per ounce due to the increase of the yield of US Treasury bonds. Yesterday the price sharply down to $1270 per ounce. Even the launch of ballistic missiles Pyongyang has not led to the escalation of military activity with Washington, but it has been caused just a sharp verbal reaction. The attractiveness of gold as a safe haven asset fell slightly.
None of the markets participants was not surprised by OPEC's decision to extend the agreement to reduce the oil production to the end of 2018, so the quoted prices reacted very sluggishly. Almost all adopted the decision during a meeting yesterday at the summit in Vienna was expected by the market and was priced in. In support of the agreement said the oil Minister of Saudi Arabia, Russian energy Minister Alexander Novak, as well as representatives of Iran and Iraq. It coincided with forecasts of analysts. However, the quotations continued to rise without much correction. There is a chance that the trend will continue to rise. Today, investors will consider number of the rigs from Baker Hughes.