On the first day of this week, the stock indices showed mixed trend and closed in different directions. The Dow Jones fell by 0.04% (20905.86), S&P 500 fell by 0.20% (2373.47), the Nasdaq rose 0.01% (5901.53). European markets also showed no single dynamics. The German DAX closed lower by 0.35% (12052.90), British FTSE 100 grew 0.07 percent (7429.81).
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 02:30 MSK the President of the United States of Trump speaks
At 03:30 MSK the minutes of the meeting of the monetary policy of Australia
At 03:30 MSK the Index of housing prices of Australia for the 4th quarter
At 12:30 MSK consumer price Index in the UK in February
At 12:30 MSK the Index of purchase prices of producers in the UK in February
At 12:30 MSK consumer price Index in the UK in February
At 13:00 MSK FOMC member Dudley speaks
At 13:00 MSK the President of the Bank of England's Carney speaks
At 15:30 MSK Base index of retail sales Canada in January
At 19:00 MSK FOMC member George speaks
The British index continues to grow for the fourth consecutive session. With the emergence of greater clarity, investors choose a direction. Yesterday date of start of the procedure of exit from the EU was finally determined, it is March 29. Today for market participants of GB a block of macroeconomic data will be published, as well as the speech of the head of the Central Bank of Carney. After yesterday's side movement the index FTSE 100 may increase volatility.
The banking sector of Europe is going down. Leader and originator of this movement was Deutsche Bank, which is preparing an additional issue with the purpose of recapitalization. This situation puts pressure not only on finance industry, but affects the entire economy. In yesterday's session, DAX closed lower by 0.35%.
The index of wide market S&P 500 declined during yesterday's trading session. Not having time to fully adjust to the new monetary policy, yesterday market participants learned about the possible plans of the Federal reserve. The head of Chicago Fed Charles Evans said that this year he is ready to vote for not less than three rate increase. The reason was inflationary expectations in connection with the growth of the economy and politics organized by the presidential administration. The dollar is not yet able to determine the direction, and slowly continues to lose value relative to other reserve currencies. If decline in S&P 500 continues today, this trend may develop, then the next support could be the level of 2350.
After the recent drop oil is developing in a new side moving range of $ 47.00 - 49,50 per barrel for WTI. OPEC is seriously concerned about the current situation, but not going to give up. Increased confidence sounds now in statements about the extension of the Viennese agreement until the end of this year. These measures are intended to create a shortage and to reduce the fuel reserves of different countries. Investors await now the release of data from the API to change inventory in the U.S. for the week.
Sincerely, Global FX chief analyst Sergey Melnikov.