Yesterday stock indexes of leading stock exchanges of America showed an increase in the single dynamics and closed in the positive zone. The Dow Jones rose by 0.50% (19954.28), S&P 500 index gained 0.28% (2275.32),the Nasdaq rose 0.28% (5563.65). European stocks also rose during the trading sessions. The German DAX rose by 0.54% (11646.17), British FTSE 100 rose by 0.21% (7290.49).
Among today's macroeconomic events in addition to publications of data it would be desirable to note speeches of monetary authorities, which may affect decision-making by investors during the trading sessions.
At 13:00 MSK shall be published in the Eurozone industrial production for November.
At 15:30 MSK will be published the minutes of the meeting of the ECB's monetary policy.
At 16:30 MSK in the U.S. speech of FOMC member Harker.
At 16:30 MSK in the U.S. it will be published index of import prices for December.
At 16:30 MSK in the United States it will be published the number of initial applications for unemployment benefits.
At 20:30 MSK in the U.S. speech by FOMC member Lockhart.
At 21:15 MSK in the U.S. speech by FOMC member Bullard.
21:45 MSK in the U.S. speech by FOMC member Kaplan.
At 22:00 MSK in the USA it will be published a report on the Federal budget of the United States in December.
Wednesday was highlighted with a press conference of President-elect Donald Trump from which investors waited for clarification about the further development of the economy. After unexpected for many the election of presidential candidate from the Republican party there are a lot of uncertainties and it became clear that economic development will continue in a different way, but it is not quite clear in which, that leads investors to a state of uncertainty. Among the main theses must to note the criticism of the Obamacare medical program. Trump has promised to replace it with better quality and cheaper, and also reduce drug prices. After this message, there was a reduction capitalization of pharmaceutical companies. Also, the new President continued to harp on the subject of protectionist policies, promising to increase customs duty on all goods produced outside the United States. Trump is going to solve a problem of the return of the industry back to the country, reminding that the concern Ford has refused car production in Mexico. The President-elect also said he will be "the best in U.S. history, the creator of new jobs." The conference ended with a promise by Trump to provide a full program of economic development immediately after the inauguration on January 20.
Despite the expectations of investors, though stock markets increased its volatility, but impulse was not followed. The index of wide market S&P 500 were down in the beginning of session and rose in late trading. It continues trading at the upper boundary of consolidation range 2250-2275. This week included several speeches of FOMC members and also Janet Yelen. If the statements of the representatives of monetary authorities will not make effect, the indexes will continue the consolidation, and the main impulse can be expected after the inauguration of Donald Trump.
Despite the growth of U.S. reserves, oil prices recovered after two sessions of slump. This is probably due to profit-taking on speculative short positions. It also became known that in its new forecast the energy information administration (EIA) raised its expectation for the average price for WTI in 2017 by 1.84, which means $ 52.50 per barrel.
Sincerely, Global FX chief analyst Sergey Melnikov.