Analytics on 07/11/2017

On Monday the stock indices continued growth and closed in positive territory. Dow Jones up 0.04% (23548.42), S&P 500 added 0.13% (2591.13), the Nasdaq rose by 0.33% (6786.44). European markets have not shown a single dynamics, and closed mixed. The German DAX declined 0.07%(13468.79), British FTSE 100 added 0.03% (7562.28).

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 03:01 MSK retail sales from BRC the UK in October
At 06:30 MSK interest rate decision Australia
At 10:00 MSK the Volume of industrial production in Germany in September
At 11:30 MSK the Index of housing prices in the UK from Halifax for October
At 12:00 MSK ECB President Draghi speaks
At 13:00 MSK the Meeting of EU Finance Ministers
At 16:35 MSK the Index of prices from GlobalDairyTrade New Zealand
At 18:00 MSK the Number of open vacancies in the US labor market from JOLTS
At 20:55 MSK the President of the Bank of Canada's Poloz
At 22:30 MSK a Speech by fed Chairman Yellen

Commissioner for economy and finance of the EU Pierre Moscovici said that the Eurozone came out from the financial and economic crisis that lasted several years. According to the data of macro statistics for 2016, all countries except Greece showed a growth. At the same time the European Commission expects economic growth in all countries in 2017 and 2018. Also according to forecasts of the European Commission, unemployment will be reduced from the current 9%.

Important event for Europe yesterday was the publication of factory orders of Germany for September. The indicator rose by 1.0 % while analysts expected a decline of 1.6%. Markets also had a support from a final index of business activity in the services sector in France in October. The index increased to 57.3 points from 57.0 points in September.

In the USA, investors are waiting for news about the tax reform. On Thursday of last week representatives of the Republican party have circulated inside the house of representatives proposals for reform. The key point of the document is to reduce the rate of taxation on corporate profits down to 20%, instead of the current 35%. In addition, it is proposed to undertake changes in the taxation of individuals, turning to a progressive system.

American investment company Berkshire Hathaway, owned by Warren Buffett, reported financial results for the third quarter, in which operating profit fell to $3.44 billion compared with $4,85 billion a year earlier.

Yesterday the main driver of the rally in the oil market was political instability in the largest country oil exporter Saudi Arabia. On Sunday, the Committee for combating corruption detained the 11 princes of the ruling family, four Ministers from the current government and dozens of former Ministers.