During the previous trading session stock markets of America showed a single rising trend and closed in green zone. The Dow Jones rose by 0.12% (21892.43), S&P 500 up 0.46%(2457.59), the Nasdaq jumped by 1.05% (6368.31). European markets also grew in a unified dynamics. The German DAX gained 0.47% (12002.47), the index of great Britain FTSE 100 rose 0.38% (7365.26).
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 02:30 MSK Speech by RBA Lowe
At 02:50 MSK the Volume of industrial production in Japan in July
At 04:00 MSK the Index of business confidence in New Zealand's trade balance for August
At 04:30 MSK new private capital expenditure of Australia for the 2nd quarter
At 09:00 MSK retail sales for July in Germany
At 10:25 MSK the speech of the member of the BoE MPC Saunders
At 11:00 MSK the change in the number of unemployed in Germany in August
At 12:00 MSK the Eurozone CPI for August
At 12:00 MSK the unemployment rate in the Eurozone in July
At 15:30 MSK Base the price index of expenses on personal consumption in July
At 15:30 MSK the Number of initial applications for unemployment benefits USA
At 15:30 MSK the Cost to individuals is US in July
At 15:30 MSK the Canadian GDP for June
At 16:45 MSK the Index of business activity (PMI) in Chicago USA in August
At 17:00 MSK pending home sales in the US real estate market for July
Yesterday began the trend of reversal in the stock markets of Europe which is likely continue today. Yesterday positive data of the consumer price index contributed to that. It rose by 0.1% and was exactly at the level of expectations of 1.8%. The beginning of a correction in the Euro against the dollar also helped to increase in the indices of the region. The inflation data of the Eurozone, which will be published today, can affect to the situation in a pair of major world currencies, as well as the data on the labor market in the U.S., which will be announced at the end of the week.
The rise of the US dollar yesterday was supported by positive macro statistics. Employment indicator from ADP was at the level of 237 thousand despite the fact that it was expected 183 thousand. U.S. GDP for the 2nd quarter rose by 3%, while the forecast of growth was 2.7%. Positive data also boosted the US stock market up, which is steadily moving out of correction. Yesterday the broad market index S&P 500 had broken the local down trend and closed at 2457.59 p, which is close to target in the resistance zone 2465, which will probably be soon achieved.
Amid growing US dollar and easing of geopolitical tensions in the world precious metals markets are correcting downwards. A significant increase in prices in previous trading session led to the achievement of local areas of resistance, as well as overbought of gold, which is reducing at the moment and the market goes into consolidation.
Data on the reduction of oil inventories from the API yesterday was confirmed by EIA. It was a decline of 5.39 million barrels, at the same time the forecast was 1.9 million barrels. However growth of quotations has not followed. Investors, looking at the effects of hurricane Harvey, suggest a significant increase in the inventories next week. The reason for this was the reduction in capacity at the refinery, i.e., oil, not being able to be recycled into a product of consumption, will be directed to replenish inventories. Also before the end of the week, the hurricane could strike another blow; meteorologists suggest even the occurrence of floods.
Sincerely, Global FX chief analyst Sergey Melnikov