Analytics on 08/11/2017

On Tuesday stock indices of USA have not shown a single dynamics and closed mixed. Dow Jones added 0.04% (23557.23), S&P 500 fell by 0.02% (2590.64), the Nasdaq was 0.27% (6767.78). European markets showed a single negative dynamics. The German DAX fell by 0.66% (13379.27), British FTSE 100 declined 0.65% (7513.11).

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 16:15 MSK the Volume of construction of new homes in Canada in October
At 16:30 MSK building Permits in Canada in September
At 18:30 MSK crude oil Inventories USA
At 18:30 MSK the data of excess oil inventories in Cushing (Oklahoma)
At 21:00 MSK the Auction on placement of 10-year Treasury notes
At 23:00 MSK interest rate Decision New Zealand
At 23:00 MSK the Report on monetary policy RBNZ
At 23:00 MSK statement by the Reserve Bank of New Zealand

There was published statistics on retail sales in Europe. Whole in the Eurozone, the index rose 0.7%, it was better than analysts ' forecasts. At the same time it dropped by 1% in the UK. There were also published data on dynamics of industrial production in Germany, the largest economy of Eurozone, in September it decreased by 1.6%, which was worse than expectations. As a result, this put pressure on the European currency, which fell to the lowest level since July. Indexes of the region also closed the session in the red zone.

Pressure on the Euro also came from the growing power of the dollar which has continued to rise against most currencies on the background of growth of profitableness Treasuries and the lower volatility. The season of corporate reporting in the US is gradually being completed, which may reduce the ardor of the bulls. Therefore, it is likely, correction this week. Currently there are 81% of the companies from index S&P 500 reported financial results. 74% of these companies reported earnings that surpassed analysts ' forecasts.

Also the focus of attention of market participants directed to negotiations about tax reform. For investors it is important that the representatives of the Republican party managed to overcome disagreements on a new bill that could make the biggest changes in the tax system of the United States for the last 40 years.

The oil retreated from the highs after jump on the background of the arrest of princes, Ministers and former senior officials of Saudi Arabia. The past event is seen as a sign of strengthening the power of the crown Prince Mohammed Bin Salman, who was in favor of production cuts within OPEC. Now oil looks overbought, it is the equilibrium price level close to $60. In this case, the market will be the balance between producers and consumers. Now the volatility is constrained by the negative from the decline of inventories according to API less than expected.