Stock indices on Tuesday showed growth in the single dynamics and closed positively. Dow Jones up 0.57% (19912.71), S&P 500 rose by 0.66% (2280.07), Nasdaq gained 0.86% (5600.96). European stocks showed mixed dynamics. Germany's DAX climbed 0.43% (11594.94), British FTSE 100 dipped slightly by 0.01% (7150.34).
For today is scheduled a number of publications of macroeconomic data, as well as speeches of monetary authorities that may affect investors' decisions during the trading sessions.
At 00:35 MSK it was published weekly crude oil inventories according to the American petroleum Institute (API).
At 03:30 MSK it will be published consumer price index (CPI) Australia.
At 12:00 MSK it will be published index of business climate IFO of Germany in January.
At 16:15 MSK President of the Bundesbank Weidmann speaks.
At 18:30 MSK in America, it will be published data on excess reserves of oil in Cushing (Oklahoma).
At 18:30 MSK in America, it will be published crude oil inventories.
At 18:30 MSK will be held the speech of the Chairman of the National Bank of Switzerland Jordan.
At 19:00 MSK will be held the speech of the head of the Bank of England Carney.
Yesterday was highlighted by several positive events which gave optimism to investors. In the UK High court prescribed to start the Brexit only with the approval of Parliament, which will examine the draft next week. Although the uncertainty until this issue persists, the markets reacted very positively on it. The national currency continued to strengthen, reaching a level of 1,2545 in the GBP/USD. There are preconditions for further growth, the goal can be in the level of 1.28. Just a week ago the pair was trading at 1.20, which was at least thirty years before but a recent softening of rhetoric of the Prime Minister about Brexit, came to result. Today, investors will pay their attention to the speech of the head of the Bank of England Carney.
One more of news markets greeted positively, it is the decision of Donald Trump on America's withdrawal from the TRANS-Pacific partnership and the renegotiation of the North American free trade agreement. Investors continue to watch the new President and it looks like they add optimism that he passes from words to actions. The index of wide market S&P 500 rose 0.66% and closed at 2280.07 that the upper bound of consolidation, it can mean a awaited boost, and can be a good signal to buy.
The American dollar has not recovered to the levels of a month ago, and the second day in sideway moving. The new U.S. administration is not beneficial to a strong national currency, it will reduce the competitiveness of the country. About this in his comments, said the candidate for the post of Secretary of the Treasury Steven Mnuchin. Under that kind of pressure, it is likely further weakening of the national currency, the immediate goal for the pair EUR/USD may be at the level of 1,085.
Oil quotations showed yesterday no any strong dynamics and they were more consolidation. There are no prerequisites for reduction, but for growth factors is not quite enough, although their number is constantly increasing. First, the Commission on control over execution of the agreement OPEC+ positively reported last weekend. Iraq yesterday announced the reduction of the volume of production by 180 thousand barrels., and there are plans for another 30 thousand barrels per day. This morning came news from the American petroleum Institute (API) on the growth stocks in line with expectations. OPEC representatives positively evaluate prospects of stabilization of the market, despite the current lack of continuation of movement. We have to wait a few months after limitation of offer to current reserves of oil already accumulated in the world began apparently to decline, which will lead to higher prices. Today market participants will pay attention to the weekly report of U.S. inventories.
Sincerely, Global FX chief analyst Sergey Melnikov.