On the last day of the previous week the American indexes not showed single dynamics and closed mixed. Dow Jones slightly declined by 0.04% (20093.78), the S&P 500 index dipped by 0.09% (2294.69), Nasdaq grew by 0.10% (5660.78). European stocks also did not have one direction. Germany's DAX slid 0.29% (11814.27). The British FTSE 100 rose 0.32% (7184.49).
Today it is expected the number of publications of macroeconomic data and the speeches of the monetary authorities, which able to influence investment decisions of market participants:
At 10:45 MSK in Australia it will be a speech by Deputy RBA of Dibella.
At 11:00 MSK it will be published the index of leading economic indicators KOF in January.
At 11:00 MSK it will be published Spanish GDP for the 4th quarter.
At 16:00 MSK it will be published the consumer price index (CPI) of Germany in January.
At 18:00 MSK it will be published data on pending home sales in the real estate market of America for December.
After the rapid growth and achievements of new highs on the major indices previous week, now some investors decided to take profits. There is a weak correctional movement for the second consecutive day. Statistical data of GDP contributed to decrease of the optimism. Real growth of gross domestic product in the fourth quarter came to 1.9%, which was below analysts’ forecast of 2.2%. At the same time support to the markets was provided by an index of consumer confidence from the University of Michigan, showing an increase this month to 98.5, it is better than forecast of 98.1. As well as a report on consumer spending, one of the important indicators of the US economy, it showed growth of 2.5% in line with expectations. However, the correction in the market continues and perhaps in the near future we can see a pullback to the level of the recently broken upper boundary of the consolidation range. For the index of wide market S&P 500 this area 2175-2181. This week investors will wait for statements from the labour market, monthly data of non-farm payrolls, which will be the first after the inauguration of the new President and may affect the Fed's decision of further actions to tighten monetary policy.
The corporate reporting season continues. Among the leaders of growth were Microsoft, the company has added to the capitalization 2.4%. The leader of the fall, we can call the company Colgate-Palmolive that declined by 6.3% due to sad sales reports for the fourth quarter. Also reduced the capitalization the second largest oil company of USA, Chevron, it is losing 2.4 percent due to poor quarterly results.
Accumulated negativity in the oil market splashed out in Friday. The result of the correction was offset the entire increase over the previous week. Pressure on the market has a recoilless growth of inventories in the United States, which in three weeks has already climbed to more than 9 million barrel. As well as continued increasing the pace of drilling activity and rising of production. Last week, Baker Hughes reported about the increase in the number of rigs for 15 PCs.
Sincerely, Global FX chief analyst Sergey Melnikov.