On Tuesday, the stock indices showed a single negative trend and closed in red side. The Dow Jones fell by 0.23% (21136.23), S&P 500 dipped 0.28 percent (2429.33), the Nasdaq fell by 0.33% (6275.06). European markets also adjust the growth of the previous days. The German DAX is down 1.04% (12690.12), British FTSE 100 dipped slightly by 0.01% (7,524.95).
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 04:30 MSK Australia's GDP for the first quarter
At 09:00 MSK the Volume of industrial orders in Germany in April
At 10:30 MSK the Index of housing prices in the UK from Halifax (m/m) for may
At 12:00 MSK Eurozone GDP for the first quarter
At 15:30 MSK building Permits in Canada in April
At 17:30 MSK crude oil Inventories in the United States
At 17:30 MSK the Data on excess reserves of oil in Cushing (Oklahoma, USA)
After a long weekend the European markets opened with a gap down, due to the negativity related to the terrorist attack in England. Later the downward movement continued, the DAX barely was reaching a historic high on Friday, sank more than 1%. Now the German benchmark is at the level of the upper border of the consolidation, which was two weeks ago. From the macroeconomic data it can be noted growth of an index of confidence of the Eurozone to highs of the ten year period from 2007 to the level of 28.4 points.
In the UK statistics of retail sales was neutral. After the sad news on Monday, the British pound traded with low volatility. Today it is possible that the speed of movements in the stock markets will continue reduce due to the upcoming Thursday, which is full of macroeconomic events. In Europe it will be early parliamentary elections in England and ECB meeting.
In the United States, investors also reduce risk, taking profit on part of long positions ahead of Thursday, when the Senate will hold hearings of the former FBI Director. Today it is likely the trend is to reduce the volatility will continue.
Against the background of growing geopolitical uncertainty demand for protective assets is increasing . USD/JPY reached six-week low dropping below 110. Also it can be noted the rise in precious metals. During yesterday's trading session, gold prices jumped to a seven-week high, reaching the level of $ 1295 per ounce. It is likely that the overall trend for rising prices of the yellow metal will continue in the coming weeks.
The tense situation around Qatar questioned the OPEC+ agreement on the reduction of oil offer. The statement of the Minister of energy of Russia Alexander Novak about the absence of obstacles to the continuation of the pact was not had a significant impact on the situation. But at the end of the day, substantial support to the energy market gave the data from the API about the decline of oil reserves by 4.620 million barrels it was above expectations of 3,500 million barrels. As a result of the oil managed to end the day in the green zone. Today investors will be watching data of inventories from the Department of Energy.
Sincerely, Global FX chief analyst Sergey Melnikov.