On Wednesday, the stock indices showed a single strong growth dynamics and closed at new highs. The Dow Jones rose by 1.25% (26115.65), S&P 500 up 0.94% (2802.56), the Nasdaq jumped by 0.94% (7298.28). European exchanges, on the contrary, has not shown the positive dynamics and closed in negative territory. The British FTSE 100 fell by 0.39% (7725.43), German benchmark DAX fell by 0.47% (13183.96).
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 00:30 MSK FOMC member Mester speaks
- At 03:00 MSK new home Sales Australia
- At 03:30 MSK the PMI Australia
- At 03:30 MSK the unemployment rate in Australia
- At 07:30 MSK industrial production Japan
- At 11:00 MSK the President of the Bundesbank Weidmann speaks
- At 16:30 MSK the Number of issued building permits in America
- At 16:30 MSK the Volume of construction of new homes in America
- At 16:30 MSK the Number of initial applications for unemployment benefits
- At 16:30 MSK the Index of manufacturing activity Philadelphia fed
- At 16:30 MSK the unemployment claims
- At 16:30 MSK the change in the number of unemployed people in Canada from ADP
- At 17:30 MSK a Speech by ECB member, Coeure
- At 19:00 MSK crude oil inventories in America
- At 19:00 MSK the data on excess reserves of oil in Cushing (Oklahoma)
Yesterday Europe was poor the news. From the macroeconomic statistics it was published the consumer price index of the EU, in December which rose by 0.3% upto 0.4%, and this was in line with forecasts of analysts. According to the report of the European Association of car manufacturers, new car sales were down by 4.9% in annual extrapolation. Despite the neutral news background the European indices went into minus. The leaders of the fall were commodity companies. Also the sectors of consumer services and telecommunications were hurt. On their background technology, utility services and basic materials looked stronger . Correction could develop further, but the weakening of the Euro helped the indices to hold.
In contrast with the European, US indices set new records. The Dow Jones at first time closed above the level of 26,000 points. Rapid growth contributed due to the optimism of investors in relation to companies profits. The index of wide market S&P500 is also at a record high, its growth since the beginning of the year amounted to 4.8%, while there were only two the "red" days during these two weeks.
Meanwhile, the reporting season in the US continue. Yesterday the big banks Goldman Sachs and Bank of America reported. Goldman Sachs said about net loss in the fourth quarter of $1.93 billion. This is the first time in six years when the Bank went negative. According to a press release, it happened because of the costs incurred in connection with the tax reform, as well as results from trading bonds and commodities. Capitalization of it fell by 1.5% at the end of trading. At the moment, has already managed to report 36 companies from the index S&P 500, and more than three quarters of the figures of net profit exceeded expectations. Market participants are also optimistic for further results, as the decrease in the tax rate on business is justified.
According to the American petroleum Institute (API) inventories of oil in America fell more than expected. In spite of this growth was not continued and now the consolidation of quotations at current levels. Oil Ministers of UAE and Iraq said OPEC+ retain the intention to fulfill the terms of the agreement before the end of 2018. Also Saudi Arabia and Russia support them. However, now more and more market participants are of the opinion that the agreement to reduce oil production may stopped ahead of schedule.