Stock indices of America have not shown a single dynamics, and closed in different directions. Dow Jones up 0.28% (21891.12), the index of wide market S&P 500 slipped 0.07% (2470.30), the Nasdaq fell by 0.42% (6348.12). European markets also traded in different directions. The German DAX dipped 0.37%(12118.25), British FTSE 100 gained 0.05% (7372.00).
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 07:30 MSK interest rate Decision of Australia in August
At 09:00 MSK the Index of housing prices Nationwide in the UK
At 10:55 MSK the Index of business activity in the manufacturing sector (PMI) for July in Germany
At 10:55 MSK the change in the number of unemployed in Germany in July
At 11:30 MSK the Index of business activity in the manufacturing sector of UK in July
At 12:00 MSK Eurozone GDP for the second quarter
At 17:00 MSK the Index of employment in the manufacturing sector from the ISM in July
At 17:00 MSK the Index of business activity in the manufacturing sector (PMI) from ISM for July
Yesterday positive data from the labor market in the Eurozone gave the initial impulse to the rise of the indexes of the Old World, but to the end of the session, the growth was neutralized amid another jump in the Euro. The unemployment rate fell to the lowest since 2009 and was 9.1%. Total retail sales in Germany were at the level of 1.1%, which is above forecast of 0.2%. The consumer price index came out unchanged and in line with expectations 1.3 points.
Today the index of "blue chips", Dow Jones, stormed new heights it had happen already for not the first session, while the S&P500 and Nasdaq are barely following it. This happens on the background is not very inspiring of the macroeconomic data, as well as continued fall of the dollar. The index of business activity of the University of Chicago in July fell from 65.7 points to 58.9 points. Despite the galloping growth indices, there is a possibility of the sales period approaching. Usually August is correctional. As a prerequisite for this is the lack of progress with the tax reform in the Congress. And now there are only two weeks remained before lawmakers leave for the holidays. Unfortunately the main focus of attention directed to foreign policy. If this week's factions of the Republicans and Democrats are not about to come to agreement, investors will start leaving from risky assets.
Also in August, it can be happen long-awaited reversal in the dollar's price, which updated low for several years last month. This can occur when the fed will announce the beginning reductions balance, and we will see the rising cost of borrowing dollar-denominated assets.
According to the results of the quarterly reports, Samsung surpassed Intel in terms of revenue of the sale of microarrays showing in the second quarter it valued of $15.7 billion, while the revenue of Intel was $14.8 billion in the same period.
Oil price continues to rise in against the background of dollar weakening. It is likely that soon there will be consolidation at the nearest resistance. The upside target for WTI could be the level of 50,80 USD per barrel. OPEC next week, on August 7-8, plan monitoring meeting, which will be evaluated compliance of the agreement on oil offer restriction. A favorable outcome can to give an extra boost in the moment and bring up the quotes for another 5-6$.
Sincerely, Global FX chief analyst Sergey Melnikov.