On Thursday indices of U.S. stock exchanges continued to rise in the single dynamics and finally closed on new peaks. The Dow Jones rose by 0.59% (20172.40), S&P 500 up 0.58% (2307.87), the Nasdaq closed up 0.58% (5715.18). European markets also closed in the green zone. Germany's DAX climbed 0.86% (11642.86), index London stock exchange FTSE 100 climbed 0.57% (7229.50).
On the last day of this week it is expected the number of publications of the macroeconomic data and the speeches of the monetary authorities that could affect investors ' decisions during the trading sessions.
At 03:30 MSK a Report on monetary policy RBA.
At 10:45 MSK the unemployment claims in the non-agricultural sector of France for the 4th quarter.
At 12:00 MSK Monthly report, the IEA.
At 12:30 MSK the Volume of production in the manufacturing industry in the UK in December.
At 16:30 MSK the Bank of Canada of Canada for January.
At 18:00 MSK the Index of consumer sentiment from the University of Michigan for Feb.
At 21:00 MSK the Number of drilling rigs from Baker Hughes.
At 22:00 MSK the Report on execution of the Federal budget for January.
Despite the pressure of political risks and the Brexit looming over Europe, yesterday the bulls managed to reverse the situation on the European markets and show growth through corporate news. The largest oil company of France, Total reported net profit which is exceeding of any projections due to cost reduction and continued for a year the growth of oil prices. Also one of the largest creditors of Germany's Commerzbank reported a net profit above forecasts, as well as revenue growth.
The stock indexes of American markets climbed to new heights yesterday. The index of wide market S&P 500 grow by 0.58% and closed over the level of 2300, that technically opens up more possibilities for the continuation of the uptrend in the near future. The driver of yesterday's rise was a statistics from the labour market. The number of initial claims for unemployment benefits showed a decrease from 246 to 234 thousand, which was significantly better than the expectations of analysts, who expected an increase up to 250 thousand. During the weekend investors will pay attention to the meeting between the US President and the Prime Minister of Japan Shinzo Abe, which will take place at the residence of Donald Trump. It is expected to discuss monetary policy and the new realities of the automobile industry.
The oil market continues to surprise investors showing optimism despite the record growth of inventories and production of oil in the United States. Prices of WTI continue to rise for the past two consecutive sessions, rebounding from the lower boundary of the wide sideways trading which is holding on for several months. The optimism can be explained by growth of import in China by 27.5% compared to last year. This country is the second largest consumer of hydrocarbons in the world after the United States. Also, market participants expect to receive a new portion of positive news from the Committee for the fulfillment of the pact of OPEC, which will be published new results on Monday. Today, investors will pay attention to the monthly report of the IEA and data of the number of drilling rigs from Baker Hughes.
Sincerely, Global FX chief analyst Sergey Melnikov