On the first day of the week the stock indices showed a strong uniform positive trend and closed in green zone. Dow Jones up 0.68% (21528.99), S&P 500 added 0.83% (2453.46), the Nasdaq jumped by 1.42% (6239.01). European markets also grew in a unified dynamics. The German DAX added 1.07%(12888.95), British FTSE 100 rose by 0.81% (7523.81).
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 04:30 MSK the Index of housing prices Australia
At 04:30 MSK the minutes of the meeting of the monetary policy of Australia
At 09:00 MSK the producers price Index (PPI) Germany in May
At 09:30 MSK the speech of the Chairman of the National Bank of Switzerland Jordan
At 10:30 MSK the President of the Bank of England's Carney speaks
At 11:45 MSK the speech of the Chairman of the National Bank of Switzerland Jordan
At 14:45 MSK FOMC member Rosengren speaks
At 15:00 MSK FOMC member Fisher speaks
At 15:30 MSK the Volume of wholesale sales in Canada for April
At 22:00 MSK FOMC member Kaplan speaks
The results of the parliamentary elections in France, supporters of the existing president Emmanuel Macron took the majority of seats, thus providing him with support for further economic reforms. Businessmen and investors believe in positive developments and accelerating growth in the second half of 2017 and in the next. Analysts predict the growth of French GDP of 1.7% in 2018. Positive policy gave impulse to the growth of all European markets. Leaders were banks and retailers.
The growth of European stock markets was a positive external background for the American colleagues. Positive helped the S&P 500 index to close above its growth targets. After two weeks of consolidation, the index managed to reach new historical high 2453. In addition to the external background growth driver was the recovery of the high-tech sector companies after the recent sell-off in the previous few days. Support was provided by a meeting of Donald Trump with the heads of 18 American high-tech companies, among which were Apple, Amazon, Microsoft. The reason for the meeting was the desire of the White House administration to upgrade state information systems with the aim of reducing costs, exception unnecessary spending and improving service quality. According to the calculations presented by the President, such measures can save more than $ 1 trillion over 10 years. The result of the trading session the market capitalization of Apple increased by 2.86%, Facebook by 1.48%.
The dollar strengthened and reached a three-week high against the Japanese yen when the Fed of New York William Dudley said that a tightening labour market should increase inflation. His comments reinforced a belief in the intention of the Fed to continue raising rates this year, which was sounded last week. Today investors will pay attention to the speeches of the three representatives of the Commission on open markets. There is a possibility for continued strengthening of the dollar this week.
Yesterday's attempt to recover the cost of oil fell, and after a small growth quotes gone to new lows. The main reason is the absence of any positive news that could facilitate the purchases, it is on the background of the fact that negative factors abound.
Sincerely, Global FX chief analyst Sergey Melnikov.