During the last trading session of previous week, the stock indices showed a single positive dynamics and closed in green zone. Dow Jones up 0.30% (22092.81), S&P 500 up 0.19% (2476.83), Nasdaq grew 0.18%(6351.56). Indices of European markets also grew in the unified dynamics and closed positively. The German DAX jumped by 1.18%(12297.72). The British FTSE 100 rose by 0.49%(7511.71).
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 09:00 MSK the Volume of industrial production in Germany for June
At 10:15 MSK the Index of consumer prices of Switzerland for July
At 10:30 MSK the Index of housing prices in the UK from Halifax for July
At 18:45 MSK FOMC member Bullard speaks
At 20:25 MSK FOMC member Kashkari speaks
This week will be rich for publications of macro data. Tuesday it will be published the number of open vacancies in the US labor market. On Wednesday the planned release of data on oil inventories in America. Thursday it will be published the volume of industrial production in England, and the producer price index in the United States. This week leading economies of the world will report about consumer price indices.
On Friday European stock indexes rose amid the weakening of the Euro and the British pound sterling, this occurred after the publication of strong data from the labor market of America. The unemployment rate in the US declined from 4.4% to 4.3%. Non-farm payrolls were especially good. The increase was up to 209 thousand despite the fact that the predicted level was 183 thousands, which is significantly lower. Employment in the private sector increased for 205 thousands with the expected 180 thousands. Indicator of participation rate in July increased up to 63.4% from 62.8%, which shows how the share of labour force in the total adult population was increased. Good news was about foreign trade. The balance deficit in the U.S. in June fell to 43.6 billion which beat expectations of $ 45.0 billion and is also the lowest since October last year.
Indexes of the USA showed weak growth, it was restrained primarily by fears of investors of the fact that a substantial improvement in the labor market will lead to another increase in the key rate this year. Major stock indexes closed the last trading session in positive territory. But the Dow Jones index once again updated the historical maximum, and completed the ninth day in the row at positive territory.
From corporate reporting manufacturer GoPro pleased investors. Capitalization of it jumped by 23.5% following the release of quarterly financial results which was above expectations of analysts.
During the week oil was down by 0.3%, the main factor of that was concerns of investors over the accuracy of performance of the covenant OPEC+ for reduction of production. On the last day of the previous week the growth of oil was due to the reduction in drilling activity, data about that was published in the weekly report from Baker Hughes.
Sincerely, Global FX chief analyst Sergey Melnikov.