On Wednesday, the stock indices showed a single slightly negative trend and closed in the red zone. The Dow Jones declined by 0.10% (20975.09), S&P 500 down 0.05% (2387.45), Nasdaq is slightly decreased by 0.01% (6025.23). European markets continued growth in a unified dynamics. The German DAX closed with a gain of 0.05% (12472.80), British FTSE 100 rose 0.18% (7288.72).
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 06:00 MSK the Report of the Bank of Japan about the prospects for the economy and monetary policy
At 09:30 MSK Press conference of the Bank of Japan
At 12:10 MSK Speech by RBA Lowe
At 14:45 MSK the Rate on Deposit facility in the Eurozone
At 14:45 MSK interest rate Decision in the Eurozone in April
At 15:30 MSK Base orders for durable goods in the U.S. for March
At 15:30 MSK Press conference of the ECB
At 15:30 MSK the Number of initial applications for unemployment benefits America
At 17:00 MSK pending home sales in the US real estate market for March
The results of the previous trading session in Europe show how a pace of purchases reduced. Volatility is reduced also, it had previously risen by the positive reaction to the victory of centrist Emanuele Macron in the first round of the presidential elections in France. From political news investors move attention to the quarterly reporting season. Yesterday favorites of the financial sector were Banco Santander with a gain of 0.17%, and Credit Suisse, the capitalization of which increased to 2.68% after the report is better than expected. Today it is planned to publish quarterly results of Deutsche Bank, Airbus, Danske Bank. Also today, investors ' decisions may be affected by statements of representatives of the monetary authorities. It will be announced the decision on the key rate of the European Central Bank, it is expected the level of it will remain 0%.
The season of corporate reporting in America continues on the positive wave. According to the result of the publications capitalization increased of the following companies Procter&Gamble, PepsiCo, United Technologies and Twitter. Today will be published data on quarterly results of Ford Motor, GoPro, Intel, Amazon, American Airlines.
The infusion to the equity funds of $4.7 billion last week says about the growth in risk appetite and continued growth trends of the stock market. It is the largest capital inflow for a month and a half.
The draft of tax reform, presented by Donald Trump, has caused skepticism among experts. Reduction of income tax from 39.6% to 15% would allow a growth business, but it will not be able to cover the loss from the difference of reduction rate. The shortfall of money to the budget most likely will increase the deficit.
The U.S. Department of energy reported that crude inventories in U.S. fell to 3.641 million, which is more than alleged decline of 1.661 million barrels. In spite of this particular positive on the energy market was not observed. Investors remain concerned that growth in shale oil production could undermine the efforts of OPEC+ to reduce global offer reduction.
Sincerely, Global FX chief analyst Sergey Melnikov.