During trading session yesterday the main U.S. stock indexes showed a negative move and closed in the red zone. The Dow Jones fell by 0.56% (19833.68), S&P 500 fell 0.84% (2249.92), Nasdaq gone down 0.89% (5438.56). Despite losses in the U.S. market, European markets closed in positive territory. German DAX has grown on 0.02% (11474.99), British FTSE 100 rose by 0.54% (7106.08).
Today it is expecting several publications of macroeconomic data from different countries, which are able to influence the actions of investors during the trading sessions.
At 10:00 MSK the U.K. is to release Nationwide HPI for December.
At 16:30 MSK the U.S. is to release Goods Trade Balance for November.
At 16:30 MSK the U.S. is to release Initial Jobless Claims.
At 19:00 MSK the U.S. is to release Crude Oil Inventories.
At 19:00 MSK the U.S. is to release Cushing Crude Oil Inventories.
Yesterday during the American session was dominated by "bearish" sentiment. It was the sharpest and prolonged decline in the past two weeks, but despite this, the rate went not abroad of their consolidation ranges. The index of wide market S&P 500 opened with a small gap up and moved down from the top of consolidation line to the bottom border. There were not any particular fundamental news or publications statistics yesterday. We can say that this movement looks like a technical correction. Investors were waiting for a good point to close part of the positions before the New Year, and yesterday the prices were at the upper end of the range. It should be noted that the volume of trading before the New Year holidays remain very low. In the absence of liquidity in a thin market such actions investors can lead to sharp movements yesterday. In the morning session has already come and index futures are traded in green zone. It is likely that today we can see a correction to yesterday's fall.
From the companies' news, we can note the increase of shares of the largest oil companies on the background of the rise in price of black gold. ExxonMobil adds 1%, ChevronTexaco increased capitalization of 2%.
Oil is rising for a sixth consecutive session, and is already near the maximum for 17 months. The main driver of growth remains the Vienna agreement of OPEC, but its strength is not enough to reach new heights. Investors now will follow a real balance of offer and demand. Today's trading in the Asian session opened lower prices of futures on main oil benchmarks. This behavior is caused by published data about the increase of 4.2 million barrels instead of the expected decrease. It is likely that today's correction will continue.
Sincerely, Global FX chief analyst Sergey Melnikov.