Stock indices yesterday showed the strongest growth for the period since the presidential election. The Dow Jones jumped by 1.55% (19549,62), S&P 500 gained 1.32% (2241,35), Nasdaq rose by 1.14% (5393,76). European indices also showed good growth. German DAX has gone up to 1.96% (10986.69), stock index of UK FTSE 100 rose by 1.81% (6902.23).
Today, it is expected publication of a number of macro-economic data and scheduled events that may affect the investment decision-making.
At 02:50 MSK in Japan GDP for third quarter was published, value (QoQ) is 0.3%, expected 0.6%.
At 15:45 MSK Deposit Facility Rate for Eurozone will be published, expected value -0.40%.
At 15:45 MSK Interest Rate Decision (Dec) for Eurozone will be published, expected value 0.00%.
At 16:30 MSK ECB Press Conference.
At 16:30 MSK in USA Initial Jobless Claims will be published, expected value 258K.
European stocks rise for a third day. Yesterday, leaders of growth were companies from the extractive and financial sectors. It seems that the failure of the Italian referendum was held for markets without any reactions, and Christmas rally is gathering its strength. In his recent speeches, ECB President Mario Draghi already hinted about a possible extension of monetary stimulus after March 2017. Today at a press conference after the meeting of the European regulator, it may be declared a positive decision on this issue. Investors are aiming to open long positions before this event.
After Trump showed his thrift, and cancelled the order for building the aircraft for $ 4 billion, the Boeing company has lost more than 550 million market capitalization at the same moment. Soon managed to compensate the loss and now the stock is trading at more than $ 3 higher than before. Yesterday’s statements of the new President of America of its intention to reduce the prices for prescription drugs has affected the sector of pharmaceutical companies. Capitalization leaders Merck & Co. and Pfizer slid more than 2%.
Despite the thrift of the new President, to which the market has not yet get habit, investors do not find special reasons to fear and boldly continue the Christmas rally. Now the index of wide market S&P 500 is already close to the first technical level of 2250, where it may get pause for consolidation.
Oil prices continue to decline. News about the agreement OPEC already considered by the buyers. It becomes apparent, that there are investors who are in doubt in the final signing of the agreement; they started close positions, fixing profit. Contradictory statistics of stocks of oil and oil products also have contributed to lower the price for the black gold. Inventories declined two times more than expected, but greatly increased stocks of gasoline and distillates. It is likely that consolidation in the range of 49.00-52.00 $ per barrel for WTI will continue until the occurrence of new information factors.
Sincerely, Global FX chief analyst Sergey Melnikov.