In the last trading day of previous week on Friday, the stock indices showed a positive trend and closed in green zone. Dow Jones up 0.21% (26071.72), S&P 500 added 0.44% (2810.30), the Nasdaq rose by 0.55% (7336.38). European exchanges also grew up in a single dynamics. The German DAX surged 1.15% (13434.45), British FTSE 100 rose 0.39% (7730.79).
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 02:00 MSK the Index of business confidence Japan's Reuters Tankan
- At 13:00 MSK the Eurogroup Meeting
- At 16:30 MSK fed national activity Index Chicago
- At 16:30 MSK the Volume of wholesale sales of Canada
On Friday, despite the ambiguous statistics, European markets still managed to show growth after a long period of stagnation. Benchmark of Germany almost managed to go greater than peak of November. The producer price index of this country showed a decline in line with expectations to 2.3% in annual extrapolation, while month-on-month it rose slightly to 0.2%. Britain has published a report on retail sales for December, it fell by 0.1% to 1.4%, which greatly below of analytics' forecasts that had predicted growth to 3.0%.
There was also continued an increase in America, although macro statistics was contrary to that. There were published the preliminary consumer confidence index of Michigan University in January, which fell 1.5 points to the lowest level since the middle of last year 94.4 points. And it was a surprise for market participants, as analysts predicted increase up to 97.0. This deterioration in consumer mood of the Americans gives the signal about re-evaluation of high expectations of economic progress, as well as doubts of investors in the capacity of President Donald Trump to fully implement a wide range of reforms in the conditions of tough confrontation with Congress.
New evidence for this was not acceptance by the Democrats in the Senate of the draft of law of temporary financing budget for the government, and at midnight Saturday that led to the suspension of all activities not related to national security and foreign policy of the Federal agencies. For the adoption of the budget the Democrats wants to cancel a number of anti-immigration measures that had been adopted earlier by the presidential administration.
Even such negative developments on Friday could not break the strength of buyers. They were inspired by very good earnings reports. This allowed to the major indices to close the 3rd consecutive week in positive territory, and show historical records. But maybe today there will be a correction in the Asian session, futures of the broad market index are trading in the red zone.
The price of gold increased by 0.4% reaching the level of $ 1335 per troy ounce. Investment attractiveness of the yellow metal as a safe harbor increased in connection with a possible suspension of activities of the government, although it had lost 0.1%.
February futures for Light fell 58 cents or 0.9% to $ 63.37 a barrel. This happened because at the next inventory reduction, US Department of energy presented data of the increase daily production to close to record volumes. During the week the price of "black gold" decreased by 1.4%. Today there is still a chance for a correction, as the report on the number of drilling rigs from Baker Hughes showed a decrease of 5.