In the last trading day of last week, the stock indices showed a single positive trend and closed in green zone. Dow Jones up 0.89% (25803.19), S&P 500 gained 0.68% (2786.24), Nasdaq also gained 0.68% (7261.06). European markets were also trading in positive territory. The German DAX climbed 0.32% (13245.03), British FTSE 100 added 0.32% (7778.64).
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 13:00 MSK Eurozone's trade balance
- At 21:15 MSK the speech of the representative of the Bank of England, Tenreiro
The main driver for growth in European stocks was the news that the party of Angela Merkel has reached a preliminary agreement on forming a coalition with the center-left party. Last year in September, the party of the Chancellor won the election, but still not a coalition government was formed, which caused fears of investors and stopped buying of the securities of the region. Of course this news has an impact not only on the stock market, it also collapses the dollar to the lowest in three years against the Euro and was supported not only by European but also American stock exchange. Unfortunately the growth in the currency played a negative role by limiting the growth stocks.
From the corporate sector we want to highlight a company Fiat Chrysler, whose capitalization grew by 0.7% after news of the transfer of one of the production lines from Mexico to Michigan. This will strengthen the company in the U.S. market, according to the Trump program.
In America the focus of investors was reports of banks JP Morgan Chase and Wells Fargo, which has opened a new season of quarterly reports. Financial results of JP Morgan Chase showed that for the year 2017 net profit decreased by 1% to 24,441 billion dollars, while revenue grew by 4%, compared to 2016, to 99,624 billion. As a result, the capitalization of JP Morgan Chase have grown on 1,69%. Also the Largest in the world by assets under management investment company BlackRock has risen to 3.3% due to successful quarterly financial results that exceeded forecasts of analysts.
In addition to reporting the US indexes continued a vertical rally up also due to the decline of the dollar after the news from Europe. Macrostate has also added of positive. The consumer price index in December showed a growth of 0.1%. Retail sales in the United States in December increased by 0.4%, analysts expected an increase of 0.5%. Given the relatively high proportion of casual retail spending in the overall structure of consumer spending which is two thirds of business activity in the United States, these figures always cause interest. In General, the positivity fills market participants now, which are not even fixed part of the profits before the long weekend. Today, American markets are closed due to celebration of Day of Martin Luther King.
The weakening of the dollar gave no chance for the bears in the oil market. Black gold continues to grow. This is despite the increase in the number of drilling rigs on Friday as Baker Hughes reported, also the decision of Donald Trump about the extension of the 120 day suspension of us sanctions against Iran.