The stock indices grew on Friday in single dynamics and finished the week on a positive area. The Dow Jones rose by 0.48% (19827.25), S&P 500 added 0.34% (2271.31), the Nasdaq rose 0.28% (5555.33). European markets were choppy. The index of Frankfurt stock exchange DAX rose by 0.29% (11630.13), the London FTSE 100 index dipped 0.14 percent (7198.44).
Today will be a few macroeconomic events and publications statistics.
At 14:30 MSK it will be held the speech the ECB President Draghi.
At 16:30 GMT in Canada it will be published wholesale sales for November.
On the last day of the previous week, America officially acquired the new President. Donald Trump became the forty-fifth President after two periods of Barack Obama. Inaugural speech of President resembled an appeal to the people of the country in hard times, Trump invited the whole nation to take up the restoration of the former power of the state, speech was full of promises to protect the interests of ordinary people, to create jobs, restore manufacturing in the USA, to consider the interests of citizens in international politics. Stock markets last week showed no particular dynamics, and volatility remaining in marked a month ago consolidation corridor despite the abundance of macro-economic events. The basic need for investors right now is clarity and understanding of the new economic policy or even the new rules of the game. Such clarity has not brought the inaugural speech of the new President. In fact, he said nothing new and gave no specifics. At the previous conference, Trump promised to report on their plans immediately after the inauguration, perhaps something it will become clear soon. Meanwhile, the markets continue to be in tension and can remain in this state in the coming months.
Under the influence of uncertainty investors continued to place funds in defensive assets such as gold. The yellow metal has been growing for a fourth week, reaching a level of 1217 on Friday, it is likely that this trend will continue, the target could be at the level of 1240.
This weekend took place the meeting of the Committee on control of performance of the agreement on cut of oil production in OPEC and other states, major suppliers. The first meeting reflected the enthusiasm of the participants, agreements with which they execute it. It was noted that the deal works and justifies the wait. The offer begun to reduce, it is not very visible in price movements due to low seasonal low demand. But the participators of the agreement are optimistic that goals to stabilize the market of hydrocarbons will be achieved. In the last hours of the trading session at the end of last week quotations of oil has shown a sharp decline, probably on a strong jump in the number of active rigs in 29 PCs, which reported Baker Hughes. But today morning the Asian session opened with a strong gap up.
Sincerely, Global FX chief analyst Sergey Melnikov.