Macro economics

Market analysis for April 6, 2017

Stock exchanges in America yesterday showed a single negative dynamics and closed in red zone. The Dow Jones fell by 0.20% (20648.15), S&P 500 lost 0.31% (2352.95), Nasdaq down 0.58% (5864.48). Unlike the American markets stocks of Old World were mixed without of single dynamics. The German DAX lost 0.53% (12217.54), British FTSE 100 grew 0.13% (7331.68).

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 ECB President Draghi speaks

At 10:15 MSK consumer price Index (CPI) of Switzerland in March

At 10:30 MSK speech by a member of the ECB Prata

At 14:30 MSK publication of the minutes of the meeting of the ECB's monetary policy

At 14:45 MSK the Statement by the member of the ECB, Constancio

At 15:30 MSK the Number of initial applications for unemployment benefits in the United States

At 16:30 MSK FOMC member Williams speaks

At 19:40 MSK the speech of the ECB Prata

At 20:15 MSK speech by a member of the ECB, Constancio

The Eurozone markets are adjusted after appearing of the information about the possibility of stopping quantitative easing sooner than planned. This position was voiced by a member of the Board of governors of the European Central Bank Vitas Vasiliauskas. Also yesterday,President of the Bundesbank, Jens Weidmann said  about the advisability of this step. On that news a pair of major currencies EUR/USD declined to the lower border of the sideways range 1,064 in which it is trading after a significant correction last week. The speeches of the representatives of the European monetary authorities expected today also.

News about the continued improvement in the labour market in the United States can push EUR/USD to further continue the decline. The unemployment rate in non-agricultural sector from ADP in March amounted 263 K while analysts had expected 187 K. The positive statistics from the labor market is an important factor for the Fed to accelerate the increase in the key rate. Tomorrow the publication of these data will continue with data of non-farm payrolls.
The US stock market has not yet decided on a direction. Despite the strong gap up at the opening in the index of wide market S&P 500, the sellers won. Investors adjust their portfolios and reduce risk pending the outcome of the meeting of leaders of America and China, which starts today.

After achieving of maximum for the month, oil prices started to correct down yesterday. The trigger for this movement was the publication of data from the US Department of energy (EIA) about of inventories growth by 1,566 million barrels. This was contrary to the data from the API published a day earlier. Support the growth of prices for hydrocarbons can give news about the shutdown of production at the Buzzard field in the North sea. Due to this, global offer decreased 0.180 million barrels a day.

 

Sincerely, Global FX chief analyst Sergey Melnikov.

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Interest rates

Country Rate Value
USA Federal Funds 0,25 %
Switzerland 3 Month LIBOR Range -0.75 %
United Kingdom Repo Rate 0,10 %
EU Refinancing Tender 0,00 %
Japan Overnight Call Rate -0,10 %
New Zealand Official Cash Rate 0,25 %
Australia Cash Rate 0,25 %
Canada Overnight Rate Target 0,25 %
All rates
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