Yesterday, the stock indices showed a positive dynamic and closed in green zone. The Dow Jones index rose by 0.60% (19881.76), S&P 500 added 0.85% (2257.83), Nasdaq increased by 0.85% (5429.08). Major indices of European markets closed in different directions. The German index DAX lost 0.12% (11584.24), British FTSE 100 rose by 0.49% (7177.89).
Today we expect series of publications of macroeconomic data from different regions of the world, which can affect investors ' decisions during the trading sessions.
At 03:30 MSK Japan is to release Manufacturing PMI for December.
At 12:00 MSK Eurozone is to release Markit Composite PMI for December.
At 12:30 MSK the U.K. is to release Construction PMI for December.
At 13:00 MSK Eurozone is to release Core CPI for December.
At 13:00 MSK Eurozone is to release CPI for December.
At 16:55 MSK the USA is to release Redbook.
At 22:00 MSK the USA is to release FOMC Meeting Minutes
At the end of last year, the index of wide market S&P 500 was declining during three sessions in a row. This was due to the thinness of the market due to lack of volumes and the main part of the bidders. Some of market participants closed part of the speculative positions to reduce risk before the season’s holidays. In the first trading session, the market growth was restored. The S&P 500 index was back in the frame range within which it was trading before the holidays. Now the probability of continuation of growth is maintained.
Yesterday evening, the American currency has again updated its 14 year highs. EUR/USD reached a peak of 1,034. It is likely that a pair of the world's major currencies continue to decline. This forecast is based on the growth yield of US government bonds, and increased investor appetite for risky assets, which are the most profitable.
The first day of trading of the New Year the quotations of basic sorts of oil was observed high volatility. Session opened with a gap up and continued growth, which was caused by a confirmation of execution of the Vienna agreement. The representative of Kuwait confirmed the reduction of production by 130 thousand barrels per day. Oman also reported a decrease of 45 thousand barrels per day. In result, oil prices exceeded the highs of July 2015. In the second half of the trading session the growth stopped, and the dynamics moved into a correction. As a result, the price of WTI fell by 2.29%, Brent at 2.02%, which levels the two-week minimum. The cause of the fall is a sharp strengthening of the currency of quotation, U.S. dollar.
Sincerely, Global FX chief analyst Sergey Melnikov.