On Thursday, the last trading day of previous week stock indices closed in the red, showing a single dynamics. The Dow Jones fell by 0.67% (20453.25), S&P 500 fell 0.68% (2328.95), the Nasdaq lost 0.53% (5805.15). European markets also moved down, but less obvious dynamics. The German DAX fell by 0.38% (12109.00), British FTSE 100 for 0.29% (7327.59).
After the Easter holidays American markets opened today. The basic trading platforms of Europe remain closed in connection with the celebration of Light Monday. Also today, in spite of this series of publications of macroeconomic data and the interventions of the monetary authorities planned, which can influence the decisions of market participants during trading sessions.
At 09:15 MSK the President of the Bank of Japan Governor Haruhiko Kuroda
At 15:30 MSK the manufacturing PMI NY Empire State in the US in April
At 23:00 MSK net long-term TIC USA in February
After the weekend the good news may be the statement by Donald Trump on Twitter about reconciliation with China. On Sunday, he wrote "Why I call China a currency manipulator when they work with us on the issue of North Korea? We will see what happens! "On the one hand a clear intention to establish a relationship with the largest importer of the United States, on the other hand this is happening against the backdrop of worsening geopolitical situation in the region. Ships of the U.S. Navy are moving to the Korean Peninsula, moving. Also to continue the show of force of America in Afghanistan it was the explosion the largest conventional bombs weighing 11 tons, the target was the underground communication ISIS.
On Monday, China reported GDP growth in the first quarter, which was 1.3% compared to the same period last year came out at 6.9%. This exceeded analysts’ expectations. China also reported industrial production increased in March by 7.6%, while waiting for 6.3%, while retail sales increased by 10.9%, consensus 9.6%.
Gold prices showed a good growth on Monday opened with a gap, contributed to the data on China's GDP, as well as tensions on the Korean Peninsula supported the demand. Last week on Thursday, gold prices traded higher, as investors continued to shift assets in the precious metal amid geopolitical concerns, despite the fact that mostly upbeat economic data failed to affect mood.
The price of oil fell due to thin market on Monday after a three-day Easter break. The U.S. continues to increase production, and it is a constant source of problems for attempts of the organization of countries-exporters of oil (OPEC) and other major oil producers to reduce offer and to support the continuation of the upside rally. Oil production in the U.S. rose to 9.24 million barrels a day, according to the latest data from the IEA. It is making the country the third largest producer in the world after Russia and Saudi Arabia. Also on Thursday, there was another message about the growth in rig count that's been happening for the 13th consecutive week.
Sincerely, Global FX chief analyst Sergey Melnikov.