On Monday Stock indices of America have not demonstrated common dynamics and closed mixed. Dow Jones up 0.24% (24290.05), S&P 500 dipped 0.11%(2639.44), the Nasdaq fell 1.05% (6775.37). European markets grew in a unified dynamics. The German DAX rose by 1.53% (13058.55), British FTSE 100 rose 0.53% (7338.97).
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 03:30 MSK retail sales Australia At 03:15 MSK the Chairman of the RBNZ Spencer speaks At 06:30 MSK Australia's Decision on key rates At 11:55 MSK the Index of business activity in the services sector of Germany At 12:00 MSK the Index of business activity in the Eurozone services At 12:30 MSK the Meeting of EU Finance Ministers At 12:30 MSK the Index of business activity in sector of services of Great Britain At 17:45 MSK the Index of business activity (PMI) in the services sector of America At 18:00 MSK the Index of business activity in the non-manufacturing sector from ISM of America
Both American and European markets are still supported with the news of the approval of the tax reform of Trump the U.S. Senate. This reform will boost the American economy, which in turn drags the whole world. Thanks to this yesterday, the European markets have shown strong growth throughout the day after the impetus on Friday. From the macroeconomic data it can be noted the report of the UK index of business activity in the construction sector, which showed an increase from 50.9 up to 53.1, it was better than forecasts of 51.0. It's not much help to the growth of the national index, despite the fact that after high volatility last week, the pound went into a narrow consolidation. This can lead to strong momentum in the coming days.
The U.S. dollar cannot decide the direction, in anticipation of new speeches of the former Advisor of the US administration's national security Michael Flynn. Last week he admitted in making false statements to the FBI and announced the intention to testify against Donald Trump in the court case of Russian interference in presidential elections. If he will tell something substantial, it could undermine the reputation of the current President and the promotion of his reforms, and as a result, it will affect world stock markets and the dollar.
So, despite the opening of the indexes up whole day there was observed downward movement. Investors don't want to continue the New Year rally until the tax reform will be applied. A Senate vote is not final and it should be adopted by the upper house of Congress, the bill now must be merged with the same document from the House of Representatives, and it could happen in the coming days.
Naturally, oil prices corrected after rising last week. In addition to fixing profit of long positions investors considered data from Baker Hughes. They showed an increase of drilling rigs in the United States for two during the previous week. Now, market participants began to pay more attention to the dynamics of this indicator. It helps to evaluate the reaction of the shale producers of America to high oil prices that make unconventional production more profitable.