Yesterday, the major stock indexes of America showed an increase in the united dynamics and closed positively. Dow Jones up by 0.30% (19942.16), the S&P 500 increased by 0.57% (2270.75), the Nasdaq Composite index added 0.88% (5477.00). European markets also closed in the green zone. The German DAX slightly added 0.08% (11584.31), London's FTSE 100 was up by 0.17% (7189.74).
Today expected a large block of macroeconomic data, mainly from the United States, which may affect investors ' decisions during trading sessions.
At 00:35 MSK the USA is to release API Weekly Crude Oil Stock.
At 12:30 MSK the UK is to release Services PMI for December.
At 15:30 MSK ECB Publishes Account of Monetary Policy Meeting.
At 16:15 MSK ADP Nonfarm Employment Change for December.
At 16:30 MSK the USA is to release Initial Jobless Claims.
At 18:00 MSK the USA is to release ISM Non-Manufacturing PMI for December.
At 19:00 MSK the USA is to release Crude Oil Inventories
Yesterday, the major indices continued their upward trend, which began immediately after the Christmas holidays. Now most investors came back after the rest days thus trading is held at a normal volume. Growth of indices warms up by a positive statistic, which in fact better than expected before. The index of current business conditions, according to the New York Institute for supply management in December rose to 63.8 points, from 52.5 points in November. In the end of trading session the index of wide market S&P 500 jumped to 2270.75, and came close to historic highs, but still remains in the consolidation range, which was before the holidays. It is likely that soon we can see the continuation of growth, the purpose of which could be at the level of 2300. Today investors will pay attention to the publication of employment data and ISM non-manufacturing PMI. At 16:30 MSK will be published the number of initial applications for unemployment benefits. According to forecasts it is expected to increase.
The U.S. currency loses its power after the publication of the Fed minutes last night. Inverters consider plans of the Federal reserve at three-fold increase in rates this year as unrealistic. The basic argument is doubt about the possibility of the approval by Congress of changes in tax legislation, which wants to hold the new president Donald Trump.
Oil stopped its decline and started to recover in price. Not only the weakening dollar helps to this, but also data about stocks changes in the United States. This morning came a report from the American petroleum Institute, according to which reserves fell by -7,400 M versus the expected -1,700 M. Today is also expected the publication of data on oil reserves.
Sincerely, Global FX chief analyst Sergey Melnikov.