Stock indices did not demonstrate a clear directional dynamics yesterday, but they closed in positive territory. The Dow Jones rose 0.03% (20981.33), the S&P 500 added 0.06% (2388.77), Nasdaq grew by 0.39% (6048.94). European markets were down in the single dynamics. The German DAX fell 0.23% (12443.79), British FTSE 100 fell 0.71% (7237.17).
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 08:30 MSK French GDP for the first quarter
At 10:00 MSK Spanish GDP for the first quarter
At 11:00 MSK the Speech of the Chairman of the National Bank of Switzerland Jordan
At 11:30 MSK UK GDP for the first quarter
At 12:00 MSK the Eurozone CPI for April
At 15:30 MSK the U.S. GDP for the first quarter
At 15:30 MSK the Canadian GDP for the first quarter
At 17:00 MSK the Index of consumer expectations from the University of Michigan in April
At 20:00 MSK the Number of drilling rigs from Baker Hughes
At 20:15 MSK FOMC member Brainard speaks
At 21:30 MSK FOMC member Harker speaks
Yesterday European indices has been adjusted down from the heights of 20-month highs. Representatives of the financial and commodity sectors were leaders of decrease. Banco Frances SA is losing 2.06%, the capitalization of the Deutsche Bank falling by 3.66%, TotalFinaElf goes to minus by 1.17%. Today, it is expected reports of Bankia and Electrolux. Following the meeting of ECB key rate in the Eurozone remained at a zero level. Mario Draghi in his comments, declared the intention of the regulator to maintain a soft monetary policy. Today, European investors will follow the publication of the GDP of several countries in the region France, Spain and the UK. Results may increase volatility during the day.
For the stock exchanges of the US optimism came with the news about the fixing of situations with reaching the debt ceiling. The Congress approved the budget of government expenses for next week. That stopped the threat of termination of work in the coming days and this will give time for the budget 2017 negotiations.
An outstanding event yesterday was the report of PayPal which came out better than expected. As a result the market capitalization of company has grown by 6.91%. The company also announced a stock repurchase worth $5 billion Capitalization of American Airlines fell by 5.56% due to a sharp decline in net profit. Today it is scheduled the reports of oil companies Chevron and Exxon Mobil.
Today is especially eventful, and this is GDP data and is corporate reporting, also today is the last trading session of April, during which traders could fix profits in order to improve the financial performance for the month.
At the end of the day will be published the number of drilling rigs from Baker Hughes, which traditionally sets the tone for trading on the oil market for the next week.
Sincerely, Global FX chief analyst Sergey Melnikov.