During yesterday's trading session, the stock markets of America showed a downward correction in a single dynamics. The Dow Jones declined by 0.15% (24754.75), S&P 500 fell by 0.32% (2681.47), the Nasdaq fell 0.44% (6963.85). European stocks have not shown an uniform dynamics and closed mixed. The German DAX index dipped by 0.72% (13215.79), British FTSE 100 added 0.09% (7544.09).
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 00:45 MSK the Balance of current account in New Zealand
- At 00:45 MSK trade balance New Zealand
- At 10:00 MSK the producer price Index (PPI) Germany
- At 16:00 MSK the President of the Bundesbank Weidmann speaks
- At 16:15 MSK the President of the Bank of England's Carney speaks
- At 16:30 MSK the Volume of wholesale sales in Canada
- At 18:00 MSK on Sale on the secondary housing market of the USA
- At 18:30 MSK crude oil Inventories
- At 18:30 MSK the Data on excess reserves of oil in Cushing (Oklahoma)
Recent Growth for European investors yesterday became a reason to commit part of the profits. This led to the mixed movement of indices. Statistics are also added incentives for the correction. The index of business expectations in Germany fell by 1.5 points to 109.5, though analysts were expecting a decrease with a lower speed to 110.7 points. The index of business climate IFO of Germany also showed a fall of 0.4 points down to 117.2, while there were predicted no change. The labour market in the EU is not pleased. The average wage for the third quarter decreased from 2.1% to 1.6%, and the index of labor cost declined 0.2%.
An additional incentive to decrease was given by the sharp rise in german Bond yields, which supported the Euro and pushed its rate up. This in turn has created additional pressure on the stock market. The growth of the Euro also affected the currency pair of EUR/JPY for the day jumped points and continues to grow today in the Asian session. The USD/JPY also showed a leap. Perhaps the movement could be stronger, but market participants are waiting for the results of the two-day meeting of the Bank of Japan, which will close on Thursday, to understand whether the Bank of Japan will join to the Federal Reserve to reduce stimulus.
As well as European investors, the US decided to fix profit. The New world index retreated from the record highs reached a day earlier, helped by unprincipled background information. The number of issued building permits came 1,298 million, thought it was more than the predicted value, but it is still a decrease relative to the previous level 1,316 million. In the end, after a small gap up at the opening of the index of wide market S&P 500 went down. Yesterday it became known that the house of representatives approved the global tax reform the United States for 30 years. But this is not conclusive. Today the Republican fraction of Congress will need to hold another vote due to procedural issues. After which the President Trump will be able to sign the bill.
The decline of oil reserves, according to the American petroleum Institute (API) had fallen to 5,222 M, which was higher value than expected 3,200 M. This supported oil prices rose in Asian session this morning. Also the growth was supported by continued outage of the pipeline in the North sea, through which oil is supplied Brent. The limitation in supply now amount to 450 000 barrels per day. The pipe operator Ineos hopes to be able to fix the crack in the pipeline until December 25.