On Thursday, the stock indices of America have not shown an uniform dynamics and closed in different directions. Dow Jones up 0.04% (22026.10), S&P 500 slipped 0.22% (2472.16), the Nasdaq fell 0.35% (6340.34). European indexes closed mixed also. The German DAX fell by 0.22% (12154.72), British FTSE 100 rose by 0.85% (7474.77).
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 04:30 MSK a Report of monetary policy RBA
At 04:30 MSK retail sales of Australia in June
At 09:00 MSK factory orders in Germany for June
At 15:30 MSK the unemployment rate in the non-agricultural sector of the USA for July
At 15:30 MSK trade balance, US June
At 15:30 MSK USD unemployment rate for July
At 15:30 MSK employment Change Canada July
At 17:00 MSK the Index of business activity (PMI) Ivey Canada July
At 20:00 MSK the Number of drilling rigs from Baker Hughes
As a result of the Bank of England by meeting yesterday the key interest rate was left unchanged at 0.25%, it was in line with expectations of market participants. On this news the pound fell by 150 points, almost reaching the level of 1.31 against the dollar.
European statistic had no any significant impact to the movement of indexes in the region. The index of business activity in the services sector of UK was 53.8 in July, it is above the consensus forecast 53.6. Retail sales in the Eurozone rose 0.5%, while the forecasted growth was 0.1%. The index of business activity in the services sector of Germany was 53.1 for July and it is below analysts ' expectations of 53.5. Capitalization one of the largest European companies Siemens fell by 3.06% after the publication of the quarterly report about net profit which was below expectations.
The diversity of the American macrostatistics was unable to support the indexes of the New World, trading opened with a small loss. Orders in manufacturing sector grew by 3% in June, while the index of economic conditions ISM non-manufacturing sector was 53.9 points, which is much worse than the forecasted of 57 points. The number of initial claims for unemployment benefits, one of the important indicators of the economic health of America, on which the fed's decision-making in monetary policy is based, was 240 thousand against of 242 thousand, and it is lower than expected and below the previous 5 thousand. Now it can even talk about though slow but continuing recovery of the labour market. Today will be published the main index, non-farm payrolls for July, which can cause increased volatility.
The company Tesla are pleased with a quarterly statement, after which the capitalization jumped by 6.7%, net loss of the company was at the level of $1,33 per share, which was below the predicted $1,88. Cosmetics seller Avon reported a quarterly loss of $45.5 million which is well below expectations. Also negative was added by the news that CEO Sheri McCoy will leave the company. As a result, the capitalization fell to 10.71%. Today will be published the results of big companies Calgon and Toyota.
Yesterday evening and this morning during the Asian session the oil markets continue to decline. WTI futures fell below 50 dollars per barrel. It comes amid growing risks of recovery of shale oil production in the US and disagreements between of parties the covenant of OPEC+. Also, it contributes to the sharp rise in exports from the African members of the cartel. Today it will be published data of changes in the rig count from Baker Hughes. Next week it will be a meeting of representatives of OPEC+. The positive rhetoric in that meeting can support buyers.
Sincerely, Global FX chief analyst Sergey Melnikov.