On Wednesday, America's stock market showed high volatility, the indices closed in the red zone, moving in a unified dynamics. The Dow Jones declined by 0.10% (21008.65), S&P 500 fell by 0.05% (2411.80), the Nasdaq lost 0.08% (6198.52). European markets have not shown a single dynamics , and closed mixed. The German DAX added 0.13% (12615.06), British FTSE 100 went down to 0.09% (7519.95).
Today it is expected a few publications of the macroeconomic data and the speeches of the monetary authorities that could affect investors' decisions during the trading sessions.
At 03:10 MSK FOMC member Williams
At 04:30 MSK retail sales in Australia during April
At 08:45 MSK Swiss GDP for the first quarter
At 10:55 MSK the Index of business activity in the manufacturing sector (PMI) in Germany in may
At 11:00 MSK the Index of business activity in the manufacturing sector (PMI) in the Eurozone in may
At 11:30 MSK the Index of business activity in the manufacturing sector (PMI) in the UK in may
At 15:15 MSK the unemployment rate in nonagricultural sector from ADP of America in may
At 15:00 MSK FOMC member Powell speaks
At 15:30 MSK the Number of initial applications for unemployment benefits USA
At 16:50 MSK the speech of the member of the ECB Lautenslager
At 16:45 MSK the Index of business activity in the manufacturing sector (PMI) of America in may
At 17:00 MSK the Index of employment in the manufacturing sector from the ISM of America in may
At 17:00 MSK the Index of business activity in the manufacturing sector (PMI) from ISM of America in may
At 18:00 MSK crude oil Inventories USA
Yesterday British index FTSE100 tried to recover, using support of the national currency. Drawdown was occurred before after the publication of the results surveys voters, which said not in favor of the Conservative party, headed by Theresa May, the current Prime Minister. She might not get a parliamentary majority in the elections on 8 June, as the consequence of that scenario of Brexit can be tough. The FTSE100 reached new historic highs but failed to hold this level.
Next week also on June 8, the next ECB meeting scheduled where decisions for monetary policy may be accepted. Yesterday's statistics on the region talked about the rising inflation, bringing it closer to the target level that may prompt a regulator to action. Against this background, the DAX fell back from one-week high achieved during the day.
Papers of the financial sector were leaders of sales, UniCredit lost -1,77%. Ericsson had good growth in capitalization on the news about the purchase of 5% stake by the company Cevian Capital.
On the background of weak macro statistics on the housing market and retail sales networks, the index of wide market S&P 500 showed a negative trend and increased volatility first half of the day. Only at the end of the session, US markets managed to win back some losses. As the result it was the closed gap formed in the middle of previous week. Today it is expected publication of a number of key macroeconomic indicators of business activity and employment, so the likelihood of continued high volatility still persists.
As in Europe the papers of representatives of US financial sector left to the drawdown. The main reason was the statement of JPMorgan Chase & Co about lower revenue from trading operations for the current quarter by 15%. Wells Fargo dipped by 1.86%, Goldman Sachs by 3.24%, JPMorgan itself has lost of 2.05% of capitalization.
The oil market is also reeling due to contradictory news. The main sale started after message about the growth of production in Libya. But data from the American Petroleum Institute saying about the reduction of inventories for more than in three times than expected pushed the quotes up today in the morning at the Asian session. Today it is also expected the official statistics from EIA. If the data from API will be confirmed, further growth can be expected.
Sincerely, Global FX chief analyst Sergey Melnikov.