Yesterday, America celebrated Day of Martin Luther King, and trading on the major exchanges were not carried on. In last the session on Friday, US stocks were mixed and closed mixed. Dow Jones slightly declined by 0.03% (19885.73), S&P 500 rose 0.18% (2274.64), Nasdaq rose 0.48% (5574.12). In yesterday's trading in Europe, stocks declined in a unified dynamics. The German DAX dipped by 0.64% (11554.71), British FTSE 100 was adjusted to 0.15% (7327.13).
Today we expect the number of publications of macroeconomic indicators, and also speeches by monetary authorities that may affect investor's decisions during of trading.
At 12:30 MSK in the UK it is released the consumer price index (CPI) for December.
At 13:00 MSK in Germany it is released ZEW economic sentiment index January.
At 14:00 MSK the speech of the ECB representative Novotny.
At 14:45 MSK the speech of Prime Minister of great Britain Theresa may.
At 18:00 MSK the speech of FOMC member Brainard.
At 18:00 MSK the speech of U.S. Treasury Secretary Lu.
Today is the first full trading day this week after American holidays. Despite the fact that today's economic calendar consists mainly speeches of the monetary authorities of different countries, the more important events wait us the rest of the week: Today also opens economic forum in Davos, for tomorrow speech planned by Fed Chairman Janet Yellen in San Francisco, 19 January the ECB will discuss the decision on the key rate, on Friday, January 20 inauguration of a new U.S. President Donald Trump.
Yesterday, European indices were down on profit taking and risk limits before today's speech of Theresa May, Prime Minister of great Britain. Her tough rhetoric about Brexit recently raises the volatility of the European markets. The essence of her intention to complete the breaking of old economic relations with the EU and create new. This creates a lot of uncertainty and increases the risks of investment. Yesterday, the British FTSE 100 colored in red for the first time this month, however, reaching a new high. The main support for the stock market in England has a national currency that is now at thirty-year lows. In the Eurozone observed inflation increase, which can worry the investors, causing them to take into consideration a possible change in monetary policy of the ECB, which will be known the day after tomorrow.
Yesterday, oil prices slightly increased on the news from Baker Hughes about the reducing the number of active drilling, which is the first for six months. But it was not enough to continue growth. Due to the absence of key players trading took place with volumes several times below average, but, despite this, the volatility is reduced before the publication of the monthly report of OPEC, which will be released tomorrow. It will give more clarity on compliance of the Vienna agreements. In case of positive news it can be expected out of the consolidation up.
Sincerely, Global FX chief analyst Sergey Melnikov.