Analytics on 20/11/2017

On Friday, the stock indices of USA showed a single negative trend and closed in the red zone. The Dow Jones fell by 0.43% (23358.24), S&P 500 dipped 0.26% (2578.85), the Nasdaq fell 0.15% (6782.79). European markets showed similar dynamics. The German DAX fell by 0.41% (12993.73), British FTSE 100 slightly declined by 0.08% (7380.68).

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 02:50 MSK the Volume of export in Japan for October
At 02:50 MSK trade balance in Japan for October
At 10:00 MSK the Index of German producer prices for October
At 15:15 MSK the speech of the member of the ECB Lautenslager
At 17:15 MSK speech by a member of the ECB, Constancio
At 17:00 MSK the ECB President Draghi speaks
At 19:00 MSK the ECB President Draghi speaks

On the last day of the trading week, the external background for the American markets was the reduction of the indexes of the Old World. Market participants react to the introduction of taxes for multinationals corporations in the EU. As a consequence there may be a significant decline in their revenues and profits. With his hand pressure on the markets has approaching Brexit, though the terms of this process is not yet approved. On Friday Jean-Claude Juncker, European Commission President, expressed hope that in December the EU members and the UK agree on the terms. Also speaking, the head of the ECB, Mario Draghi, promised to keep interest rates at current record low levels for an extended period of time after completion of the program, giving extra support for the Euro and, consequently, the pressure on the stock market.

On Friday the main macro statistics in the USA has been the number of construction of new homes in October, which amounted to 1.29 million units, which is significantly higher than expected 1.19 million units. It gave a support for buyers, but it was not enough to continue growth. The main driving force now is new tax reform. Yesterday, the Republicans having a majority in the House of representatives, managed to secure the adoption of the bill now for their version of the bill to vote in the Senate, and then will begin the long overcoming all existing divisions for approval of a single document. This difficult process is delaying the implementation of the expected fiscal reforms and, accordingly, reduces the potential growth in the stock market.

The weekly increase in the price of gold were at the highest percentage value since May of this year, 1.8%. The reason was the weakening of the dollar against all the major reserve currencies, primarily against the Japanese yen and the Swiss franc.

Oil quotations won back the correction, which was the day before. The main reason expectations of the extension of the agreement on the reduction of oil production until the end of 2018. It is also expected that after the meeting of the cartel OPEC in late November a number of other oil-producing countries will join. For the week the price of oil dipped by 0.3%, and this interrupted the continuous growth during the previous five weeks. According to Baker Hughes the number of rigs has not changed, that also plays into the hands of buyers.