On Wednesday there was a single positive dynamics on the markets of the United States, as a result the major stock indices closed in the positive zone. Dow Jones industrial average added 0.54% (20950.10), the index of wide market S&P 500 rose 0.84% (2385.26), the Nasdaq rose 0.74 percent (5900.05). European markets also showed growth in a unified dynamics. The German DAX rose 0.18% (12009.87), British FTSE 100 added 0.15% (7368.64).
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 00:45 MSK New Zealand GDP for the 4th quarter
At 03:30 MSK the PMI Australia for February
At 06:00 MSK the Report on monetary policy Bank of Japan
At 09:30 MSK Press conference of the Bank of Japan
At 11:30 MSK the Decision of the Swiss Central Bank interest rate
At 11:30 MSK Assessment of the monetary policy of the Central Bank of Switzerland
At 13:00 MSK the consumer price Index (CPI) for the Eurozone in February
At 15:00 MSK interest rate Decision UK
At 15:00 MSK the minutes of the meeting of the Committee on monetary policy of great Britain
At 15:30 MSK the Number of issued building permits in the US in February
At 15:30 MSK the Index of manufacturing activity Philadelphia fed for March
At 15:30 MSK the Number of initial applications for unemployment benefits USA
At 17:00 MSK the Number of open vacancies on the labour market JOLTS US January
As it was expected by results of voting of the FOMC, the US key rate was raised by 25 basis points to a target range of 0.75% -1%. The decision was approved by all Commission members except for the President of the Federal reserve Bank of Minneapolis Neil Kashkari. Janet Yellen said in her comments, that the fed will continue to strive for a gradual tightening of monetary policy and this will make growth smoother. Such an intention may reassure investors for whom the absence of turbulence in the stock market is important. This position will increase the appetite to risk and will create the preconditions for the continuation of smooth growth. Yesterday as a result after sideways movement during a couple weeks of, the index of wide market S&P 500 came out of a range up and continued growth within uptrend. The nearest resistance can be at the level of 2400 p.
Today following the USA decisions on monetary policy the same is going to be in some other economies in the world. As it became known this morning, the Bank of Japan kept its key interest rate at its previous level of -0.1% with an annual assets buying of 80 trillion JPY. Later today there will be a press-conference of the President of the Bank of Japan Kuroda with detailed comments for further action. Today following the land of the rising sun it is expected the update of monetary policy in the UK and Switzerland. In this regard, investors ' attention will focus on the foreign exchange market.
After the announcement of the new U.S. key interest rate there were partial profit taking on long positions in the dollar in the foreign exchange market, which led to its weakening. This in turn gave a chance to oil for the correction after its recent slump. Yesterday's upward movement was also supported with the report of the decline in inventories of the United States against of projected to grow. In case of continuation of correctional dynamics up the next target could be the level of $ 50,70 per barrel for WTI.
Sincerely, Global FX chief analyst Sergey Melnikov.