On the first day of the working week stock indexes of America have not shown an uniform dynamics and closed mixed. The Dow Jones rose 0.13% (21703.75), S&P 500 rose by 0.12% (2428.37), the Nasdaq decreased by 0.05% (6213.13). European markets were down in the single dynamics. The German DAX fell by 0.82% (12065.99) Britain's FTSE 100 dipped 0.07% (7318.88).
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 12:00 MSK the current conditions Index ZEW in Germany in August
At 12:00 MSK the economic sentiment Index ZEW in Germany in August
At 12:00 MSK the Index of economic sentiment ZEW
At 13:00 MSK the Index of industrial orders in the UK in August
At 15:00 MSK the Statement by the member of the ECB Constancio
At 15:30 MSK Base index of retail sales Canada in June
At 15:30 MSK retail sales in Canada for June
European stocks look noticeably weaker than the others. Yesterday there were not a lot of events and publications of macroeconomic data, so the indices drifted in the continuation of the downward trend, which intensified last week due to a terrorist attack in Barcelona. Although now European stocks approached to a strong resistance level, what gives hope for the consolidation.
In the US market after unconditional victory of sellers last week, which led to the break of the local upward trend, the volatility is reducing. The market is trying to consolidate at the current levels. The index of wide market S&P 500 found a support near the value of 2420 points. It is likely that the new range now will be between 2420 and 2450 levels, the exit from which is unlikely to be before the end of the week, when there will be a symposium of FRB of Kansas city. It will be attended by the representatives of the Central Banks of different countries. In Friday Fed Chairman, Janet Yellen will present report on the state of the US economy. It is also expected the statement of ECB President Mario Draghi, which will probably give a details on the timing of monetary policy tightening in the Euro area.
In the absence of the macroeconomic data investors consider news about the geopolitical situation and on the corporate reports. Pressure on the dollar yesterday was made by the news of the beginning of the joint military exercises of the U.S. and South Korea. The maneuvers proceed using computer simulation that can be perceived by North Korea as preparations for invasion and cause a reaction. As a result, U.S. dollar dipped towards less risky currencies, yen and the franc.
The results of the corporate reporting season are talking about economic growth. 73% of the total number of the companies reported net profits that exceeded analyst expectations. This week, investors will monitor results of Lowe's Cos, Staples, Dollar Tree и Tiffany & Co.
After take-off on Friday, yesterday, oil prices moved to the correction due to profit-taking that intensified at the end of the session. Despite the decline of the number of drilling rigs in the United States, this does not inspire much optimism, since producers of shale oil are not going to abandon plans to increase production for 160 thousand barrels per day this year. The news about the outage of the largest oil deposits of Libya saves prices on "black gold" from deep dive.
Sincerely, Global FX chief analyst Sergey Melnikov.