On the last day of the previous week the stock indices showed a positive trend and closed in green zone. The Dow Jones rose by 0.32% (19963.80), S&P 500 by 0.35% (2276.98), the Nasdaq added 0.60% (5521.06). European indexes are not distant from overseas colleagues. The German DAX rose 0.12% (11599.01), British FTSE 100 by 0.20% (7210.05).
Today is expected a block of publications of macroeconomic data, which may affect the opinions of investors during the trading sessions.
At 10:00 MSK the Volume of industrial production in Germany in November.
At 11:15 MSK retail sales in Switzerland in November.
At 13:00 MSK the Eurozone unemployment rate for November.
At 17:00 MSK scheduled speech of FOMC member Rosengren.
At 20:45 MSK scheduled speech of FOMC member Lockhart.
Last Friday was highlighted by the release of data on the US labor market. This is the first publication after raising the key rate in December. Employment figures are a key in the taking of decisions on tightening monetary policy by Fed. This time the statistics went controversial. The number of jobs increased in December by 156 thousand while as expected the increase of 178 thousand, the unemployment rate increased by 0.1%. The fact that the data came out worse than expected was brightened up by a revision upward in November increased from 178 thousand to 204 thousand.
Market participants reacted calmly to the published data, and particular the jump in volatility was observed. Stock indices continued its growth and has shown historical highs. Dow Jones in the dense came nearer to a symbolic level of 20,000, reaching in the course of trading 19 999,63. The index of wide market S&P 500 during the trading session pierced border of the consolidation range. Now there are preconditions that the rise may continue with a target of 2300.
Good news came for Apple. The Canadian competition authority did not find sufficient evidence to bring charges of unfair competition policy of the company. The investigation, lasting more than two years, was completed. After that event the capitalization of the manufacturer of the popular smartphones grew by 1.1%.
Oil quotes continued to rise on Friday after receiving of positive news from the participants of the Vienna agreement, which confirm the reality of the promised production cuts. However, the growth rate is still lower than expected. The prices for black gold is under the pressure of activity from shale oil producers, which is confirmed by the relentless weekly increase of the rig count. Prices for more than two weeks stay at the level of the middle of December.
Sincerely, Global FX chief analyst Sergey Melnikov.