On the first day of this week, the main stock indexes of different countries showed growth and closed in green zone. Dow Jones gone up for 0.20% (19208,90), S&P 500 added 0.56 percent (2204,25), the Nasdaq rose by 0.93% (5304,71). European indices also showed upward dynamic. German DAX rose by 1.63% (10684.83), British FTSE 100 increased by 0.24% (6746.83).
Today published a series of macro-economic data that can have influence the investment decisions of market participants.
At 06:30 MSK was published the decision of the Reserve Bank of Australia about interest rate for December, which remained unchanged at 1.50%, as expected.
At 10:00 MSK we will know size of change of volume of industrial orders in Germany in October, it is expected that the figure will be 0.6%.
At 13:00 MSK Eurozone GDP for the third quarter will be known, as expected the value remain at the level 1,6%.
At 16:30 MSK in the U.S. will be published trade balance for October, it is expected that the figure will be -41,80 B, which is below the previous value -36,40 B.
At 18:00 MSK it will be published index of business activity of Canada by Ivey for November, according to analysts, the figure may be 59.9 %.
At the first trading session of this week, European indexes opened with a gap down. It was expected on the background of the failure of the Prime Minister of Italy on the constitutional referendum at the weekend. Matteo Renzi have seen the reforms as the main vector of development of a country that said "no" to them. After that, Renzi declared that resigns. But, despite the appearance of danger of a banking crisis in the country, investors may have decided that all of that is done, all the best and by the end of the session, the indices recovered and closed in green zone. Support to buyers was provided by the representative of the European Central Bank's Nowotny, who said that there are no obvious reasons for the exit of Italy from the Eurozone, and if there are problems, they only in separate banks, but not the entire banking system of the country. The ECB does not need a banking crisis, and if necessary he is ready to support Italian banks. Macro-economic data also provided support to the "bulls". The PMI in the services sector of Germany for November came in better than it was expected, as well as PMI in the UK.
Today, European investors will consider data of GDP, analysts expect growth year-to-year by 1.6%. EUR/USD during yesterday's session has shown the highest volatility during the month, it dropped below the local low, but at the end of the day shot up to highs of three weeks. Perhaps today we saw the start of the local correction in the pair, the purpose of which may be in the range of 1.08 to 1.10.
Following Europe, the U.S. indices resumed their growth. S&P 500 closed above the recently broken the annual high and continued consolidation, which began last week. On the background of the high probability of growth of the key rate in December, financial sector is growing especially. The leader of that growth was Bank Goldman Sachs, increasing its capitalization to a maximum for 9 years.
Prices for futures contracts for WTI crude oil opened trade session with a decline today, it happen after reaching year high yesterday .Now prices are in consolidation at high levels, gaining strength before the new impulse. Perhaps investors are waiting for the final signing of the agreement between the countries-oil producers December 10.
Sincerely, Global FX chief analyst Sergey Melnikov.