On the last trading day of last week, on Friday, the major American indexes showed growth in the single dynamics. The Dow Jones rose by 0.07% (19933.81), S&P 500 added 0.13% (2263.79), the Nasdaq rose by 0.28% (5462.69). European stocks closed mixed. Germany's DAX sank slightly by 0.05% (11449.93), British FTSE 100 grew by 0.06% (7068.17).
Today it is expected a number of publications macro-economic data that can influence investor decisions during the trading sessions.
At 02:30 MSK Japan is to released Tokyo Core CPI for December, the actual value of this is 0.6%.
At 16:55 MSK the USA is to released Redbook.
At 17:00 MSK the USA is to released S&P/CS HPI Composite - 20 n.s.a. for October.
At 18:00 MSK the USA is to released CB Consumer Confidence for December.
Yesterday U.S. and European stock exchanges were closed for the Christmas holiday, trading with oil is also not carried out.
Last week the U.S. stock indexes traded in a narrow consolidation range. So the index of wide market S&P 500 for the second week does not go beyond the corridor 2250 – 2275. The volatility gradually decreases. This can be explained by preparing traders for the holidays and decreasing of work activity. It is a good sign that says about the approach of a strong pulse. We can assume that with high probability this momentum can be held upward. In this case, the upside target for the S&P 500 index is near the level of 2300.
In America continue to unfold the events surrounding orders for new jet fighters to Lockheed Martin. A couple of weeks ago the new President, Donald Trump announced via Twitter that he will cancel the order for the construction of the latest F-35 fighter due to excessive high cost. The total amount of the contract was 400 billion. While Trump said he thinks over the placement of this order to the Boeing company. At this news the market capitalization of Lockheed Martin fell almost 10% over the past two weeks. On Friday, the CEO of Lockheed Martin Marlin Hewson said that currently in talks with Donald Trump, and ready to make concessions in price in order to preserve order. The news can make buyers to wake up, who now have the opportunity to enter a trade at a great correction.
Today trading of oil futures opened with a small gap up and immediately began to be adjusted. The main part of investors and buyers are waiting for the real execution of the new agreement, OPEC+ for the reduction of oil production. So the main events will unfold after the first of January 2017. Now rising prices inhibits by the activity of countries not participating in the agreements. This improvement in the situation in Libya, where due to the reduction in military conflicts the opportunity to increase production appear. It is projected that the country will be able to put another 400 thousand barrels per day in the near future. Also, suppliers of shale oil to increase its production capacity, as evidenced by the weekly report on the number of drilling rigs.
Sincerely, Global FX chief analyst Sergey Melnikov.