Yesterday, stock indices of USA showed multidirectional dynamics. The Dow Jones fell by 0.21% (19899.29), S&P 500 slightly declined by 0.08% (2269.00), Nasdaq has grown 0.20% by (5487.94). European stocks showed near-zero dynamics, closed in the green zone. The German DAX added 0.01% (11584.94), British FTSE 100 rose by 0.08% (7195.31).
Today it is expected the number of publications macro-economic data and speeches of the monetary authorities, which may affect investors ' decisions during the trading sessions.
At 16:30 in the USA will be to released Nonfarm Payrolls for December.
At 16:30 MSK in the USA will be to released Unemployment Rate for December.
At 16:30 MSK in Canada will be to released Employment Change for December.
At 18:00 MSK in Canada will be to released Ivey PMI for December.
At 21:00 MSK in the USA will be to released U.S. Baker Hughes Oil Rig Count.
At 21:00 MSK FOMC Member Lacker Speaks.
At 23:35 MSK FOMC Member Kaplan Speaks
U.S. indices continue to move in low volatility sideways. The index of wide market S&P 500 showed a slight increase, remaining in consolidation corridor 2250-2275. Dow Jones is approaching the level of 20.000, is also not making any sudden movements. The yesterday's data on labour market has been contradictory and did not give sufficient clarity. On the one hand the change in the non-farm payrolls from ADP came out worse than expected, on the other hand, the number of initial claims for unemployment benefits decreased significantly. All can be resolved today after the monthly government employment data non-farm payrolls, which will be published at 16:30. It is expected that volatility will increase and there will be long awaited release of the more than two-week consolidation.
Donald Trump continues to develop protectionist policies. After Ford, the new President had threatened via Twitter Toyota Motors new duties on imports for finished vehicles from Mexico, where the company was going to build a new plant. On this news, the company slipped in the capitalization of more than 0.5% and still has a tendency to decrease.
Yesterday's employment data from ADP had an impact on the value of American currency. The dollar continues to weaken for the second consecutive session. It adds optimism to buyers of gold, which develops a correction after the slump. If the trend continues, the next target level for prices for the precious metal will be at around 1200.
The falling dollar also impacted on increasing of prices of oil futures contracts, they are growing the second consecutive session. Yesterday to the positive factors added significantly lower inventories in the USA, and also news that Iraq has begun to decrease production in accordance with the Vienna agreement OPEC+. Today oil investors will focus on data from the US labor market, as well as the weekly report from Baker Hughes the number of rigs.
Sincerely, Global FX chief analyst Sergey Melnikov.