On Monday the stock markets in America once again rose demonstrating a positive trend. Dow Jones increased by 0.55% (26214.60), S&P 500 added 0.55% (2832.97), the Nasdaq jumped by 0.98%(7408.03). Unlike overseas colleagues the European have not shown a single dynamics and closed mixed. The German DAX added 0.22% (13463.69), British FTSE 100 slipped by 0.20% (7715.44).
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 09:30 MSK a Report on monetary policy Bank of Japan
- At 09:30 MSK interest rate Decision Japan
- At 09:30 MSK a report by the Bank of Japan about the prospects for the economy
- At 09:30 MSK Press conference of the Bank of Japan
- At 13:00 MSK the current situation Index ZEW in Germany
- At 13:00 MSK the ZEW economic sentiment Index in Germany
- At 13:00 MSK the economic sentiment Index ZEW in Eurozone
- At 13:30 MSK the Meeting of EU Finance Ministers
- At 14:00 MSK the Index of factory orders (CBI) in the UK
Trading in Europe has started from approaching the "red zone", but on the background of the world positive attitude stock market of Germany was able to move into positive territory. Special attention of investors this week will be focused on the upcoming ECB meeting. It is assumed that due to current dynamics of inflation and concern of Mario Draghi the strong Euro, the regulator will take a more "dovish" rhetoric. This can be a signal to close positions in the stock market, and as a result will lead to the correction of the Euro.
From fundamental news, it is better to highlight quarter report of Switzerland's largest Bank UBS. It has offices in more than 50 countries, the number of employees exceeds 61 thousand, and the capitalization today is 72,202 billion CHF. According to the report profit for the year fell from 3,286 billion CHF to CHF 1,247 billion. The loss is due to the inclusion of statements of tax deductions in connection with the adoption of the tax reform in the United States, which lump sum payment UBS was amounted CHF 2.9 billion. In the fourth quarter of 2017, the Bank recorded a net loss of 2.22 billion. In spite of this it was recorded an increase of 34% of pre-tax profits up to 997 billion, and that's better than analysts ' expectations.
In America, investors do not care so much about the government shutdown, which began last week, the index continued rally up. It could face the country billions in losses, even if it only lasts for a few days. Previous time the government was stopped in 2013 for 16 days. Then the reaction on financial markets was substantial. In history, the us government has suspended its work for 18 times. Yesterday as expected by investors, President Donald Trump at the end of the day signed up a draft wich was agreed by both houses of Congress, a government will be financed until February 8. A temporary budget was adopted for the fourth time since the beginning of the financial year. This is because Republicans and Democrats can't agree on long term budget on the background of some disagreements in immigration legislation.
After a pause and small correction oil moved to growth again due to the statements of the Minister of energy of Saudi Arabia. He said that most of the countries, parties to the agreement to reduce production the OPEC+ have intention on the extension of it after 2018, but then the format will carry more advisory in nature, as suggested by the Minister of energy of Russia Alexander Novak.