Analytics on 13/11/2017

On the last day of the previous trading week, stock indices of America have not shown a single dynamics, and closed mixed. The Dow Jones declined by 0.17% (23422.21), S&P500 slipped by 0.17% (2582.30), the Nasdaq rose 0.01% (6750.94). European markets showed a decline in a unified dynamics. Germany's DAX slid 0.42% (13127.47), British FTSE 100 down 0.68% (7432.99).

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 01:00 MSK a Speech the Deputy head of the RBA Debelle
At 03:10 MSK FOMC member Harker speaks
At 03:01 MSK the Index of housing prices from Rightmove UK
At 12:00 MSK the Statement by the member of the ECB, Constancio
At 14:00 MSK Monthly report, OPEC
At 20:45 MSK the President of the Bank of Japan Governor Haruhiko Kuroda speaks
At 22:00 MSK the Report on execution of the Federal budget of the USA for October

European exchanges ended the week negative due to external background, despite the relatively good performance of macroeconomic indicators. France has published data on industrial production, which grew in line with expectations of experts for 0.6%. In the UK, industrial production rose 0.7% in September, despite the fact that the expected increase of 0.3%. The pressure on the national index was made by a report of the German insurance company Allianz. In the third quarter it showed reduced operating profit by 15.6% to € 1.6 billion compared with 1.9 billion euros recorded a year earlier.

On Friday, the pessimistic mood of US investors was due to disagreements in the Congress regarding the main conditions and timing of tax reform. This happened after the Senate introduced its version of its implementation, according to which the tax on the profits of companies will be reduced from 35% to 20% only in 2019. Last week, the U.S. House of representatives has put forward its own version of the reform. The differences between these two versions relate to the canceletaion of tax deductions maximize income tax for individuals. Tax reform is one of the key points of the program of the President Trump and it is expected that it should lead to higher corporate profits. Hope for this ensured a steady rise of the U.S. stock market lately, and the disappointment can lead to a strong correction that is already overdue.

The corporate reporting season coming to an end, which will reduce the flow of positive news. One of the last to consider the report of the company NVIDIA, the world's largest manufacturer of graphics accelerators, which showed revenue increased by 31.5% to a record 2.64 billion. and that's above the consensus forecast of 2.36 billion dollars. As a result, the capitalization grew by 6.3%.

On Friday, oil prices dropped due to the fact that, according to the report of oilfield services company Baker Hughes there were an increase in the total number of drilling rigs operating in the United States for the first time in the last 6 weeks. Although during a week an increase in the prices of "black gold" was 2.0%. There is a likelihood of correction.