Yesterday, the major stock indexes of America showed neutral dynamics and closed in the red zone. The Dow Jones dipped 0.07% (19819.78), S&P 500 fell by 0.03% (2249.26), Nasdaq closed with a minus 0.12% (5432.09). European stocks showed mixed dynamics. The German DAX fell 0.21% (11451,05), British FTSE 100 down by 0.20% (7120,26).
Today it is expected some publications of macroeconomic data, able to influence investors' decisions during the trading session.
At 17:45 MSK the USA is to release Chicago PMI for December.
At 21:00 MSK the USA is to release Baker Hughes Oil Rig Count.
The last trading week of this year brought a surprise. Today in the Asian trading session in the currency market sudden a flash crash happen. The Euro rose sharply in price. EUR/USD at the moment have reached values of 1,065, which is maximum of three weeks. It should be noted that a pair of the major currencies for more than a week was in a sideways consolidation after the presidential rally, where the dollar has risen more than 6%. Investors ' expectations of changes in the policies and plans of the Federal reserve to raise the key interest rate has reignited interest in the U.S. currency. But closer to the new year crush at the buyers ran out, and some of them decided to take profits. Due to extremely low trading volumes and lack of sufficient liquidity technical correction turned into sharp spikes of volatility. As a result, eventually the sellers came to market and they helped to return the pair to the level of 1,053. It is likely that the Euro will continue to be adjusted upwards.
During yesterday's trading session, the stock indices showed a neutral trend and closed in negative territory, despite the fact that the macro data does not give the reasons for the negativity. The number of initial claims for unemployment benefits came in line with expectations and was on level 265 thousand. As a result, the index of wide market S&P 500 fell slightly, but still within the consolidation range. In the morning the futures contracts show slight increases from the lower end of the range. This behavior can be explained by the desire of investors to cover some positions and lock in profits, and also the thinness of the market in which there are no big buyers.
The oil also showed no any a particular dynamic. Despite the increase of stocks according the US Ministry of energy quotations did not show any signs of correction. Today investors will pay attention to data of the number of active oil rigs from Baker Hughes.
Sincerely, Global FX chief analyst Sergey Melnikov.