On Thursday, the stock indices showed a strong positive trend and closed in green zone. Dow Jones up 0.85% (20578.71), S&P 500 added 0.76% (2355.84), Nasdaq surged by 0.92% (5916.78). European markets also closed positive, but without bright dynamics. The German DAX climbed 0.09% (12027.32), British FTSE 100 added 0.06% (7118.54).
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 10:00 MSK the Index of business activity in the manufacturing sector (PMI) in France in April
At 10:30 MSK the Index of business activity in the manufacturing sector (PMI) in Germany in April
At 11:00 MSK the Index of business activity in the manufacturing sector (PMI) in the Eurozone in April
At 11:30 MSK , retail sales for March
At 15:30 MSK Base the consumer price index (CPI) for March
At 16:45 MSK Index of business activity in the manufacturing sector (PMI) of America in April
At 17:00 MSK Sales in the secondary housing market of the USA for March
At 20:00 MSK the Number of drilling rigs from Baker Hughes
Yesterday, the US stock market was supported by the publication of macroeconomic data from the labor market, which was ambiguous. The number of initial claims for unemployment benefits rose to 244 thousand at the forecast of decrease to 242 thousand. But the number of citizens who continue to receive benefits for the week decreased by 49 thousand, and reached the minimum for 17 years. The American market was supported also by index of leading indicators, which rose to 0.4% while the forecast was 0.2 %. Today investors will pay attention to statistics of the sale of homes on the secondary market. The growth rate, which is expected by analysts, pointing to a strengthening economy and the increased likelihood of interest rate hikes by the fed.
Head of the Federal Reserve Bank of Dallas Robert Kaplan said yesterday that a good benchmark for the market is still three-fold increase in rates this year. He also said that the fed has the ability and the intention to proceed gradually, with patience and sensitivity to the main indicators of the U.S. economy.
European investors are waiting now for the results of the first round of the presidential elections that will be held on the weekends. Leadership of Emmanuel Macron can significantly support markets, although the recent terrorist attack in Paris may add votes to Marine Le Pen.
Quarterly reporting period continues in the United States. American Express reported yesterday the net profit above analysts ' expectations, whose market capitalization has subsequently jumped by 5.49%. Bright outsider was EBay, which fell by 3.03% due to insufficient financial returns.
Yesterday news came that Iraq had expressed an intention to withdraw from the Vienna OPEC+ pact of offer reducing and plans to increase production. Despite this, the country still supports the idea of the agreement. After a strong decline this week oil is consolidating at current levels. The weakness of the dollar inhibits it from further decline. Today, investors will monitor the number of active drilling rigs, published by Baker Hughes Agency.
Sincerely, Global FX chief analyst Sergey Melnikov.