U.S. stock indexes yesterday showed a single negative trend and closed in red zone. The Dow Jones lost 0.32% (19891.00), S&P 500 slipped 0.21% (2270.44), the Nasdaq fell 0.29% (5547.49). European markets closed in different directions. The German DAX fell 1.07% (11521.04), British FTSE 100 has grown slightly by 0.03% (7292.37).
Today it is expected the number of publications of the data of macro statistics, and also speeches of representatives of the monetary authorities, which may affect investors ' decisions during the trading sessions.
At 03:00 MSK there was a speech by Fed Chairman Janet Yellen.
At 16:30 MSK in the U.S.it will be published core index of retail sales for December.
At 16:30 MSK in the U.S. it will be published producer price Index (PPI) for December.
At 16:30 MSK in the U.S.it will be published retail sales for December.
At 16:30 MSK in the U.S. it will be published core index of producer prices (PPI) for December.
At 17:30 MSK in the U.S. the speech of the FOMC member Harker.
At 18:00 MSK in the U.S.it will be published consumer sentiment Index from the University of Michigan on January.
At 21:00 MSK in the U.S. it will published the number of drilling rigs from Baker Hughes.
The conference the newly elected President of Donald Trump has not provided sufficient clarity in the vision for further developments. Not having received the additional driver for the stock markets of the New World continued to drift in the sideways ranges just slightly increased volatility. Market participants also did not find out for a clear stimulus for growth in the rhetoric of the monetary authorities. In his speech yesterday, Patrick Harker stated that he considers appropriate a three-fold increase in the key rate during 2017. However, his colleagues were not so optimistic. Dennis Lockhart, Atlanta fed President believes that the two increases will be enough, and the representative from St. Louis, James Bullard opined that he does not want to rush to raise rates. After the speeches of FOMC members, the investors ' attention was drawn to the speech of Fed chair, which took place at 03:00 MSK. Janet Yellen said she's optimistic short-term economic prospects, but, nevertheless, she was concerned about increasing income inequality and low rates of productivity growth. In her speech, Janet Yellen did not comment the prospects of the US economy and monetary policy.
Not receiving information’s recharge from the representatives of the monetary and political authorities in the stock markets continued to move sideways at the same time from the sales was restrained by the positive statistics from the labor market. New impulse may come after the inauguration of Donald Trump, which will take place on January 20. Also, now the attention of investors is drawn to the start of the season of quarterly corporate reporting.
Oil prices continue to rise on news from the countries who had supported the Vienna agreement, about the reductions of production volumes, as well as on expectations of increasing demand for hydrocarbons from China. An additional stimulus to growth now is stopping of the dollar strengthening. Today investors are waiting for a report of the number of active oil rigs from Baker Hughes.
Sincerely, Global FX chief analyst Sergey Melnikov.