Yesterday American indexes showed a sharp negative trend and closed in the red zone. S&P 500 down 1.24% (2344,02), the Dow Jones went down by 1.14% (20668,01), the Nasdaq fell for 1.83% (5793.83). European indices also ended yesterday's session in negative territory. German DAX has decreased on 0,75% (11962,13), British FTSE 100 down by 0.69% (7378,34).
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 01:00 MSK FOMC member Mester speaks
At 02:50 MSK the meeting minutes monetary policy of Japan
At 02:50 MSK trade balance of Japan for February
At 04:40 MSK a Speech the Deputy head of the RBA Debelle
At 14:30 MSK and the speech of the member of the ECB Lautenslager
At 17:00 MSK Sales in the secondary housing market of the USA for February
At 17:30 MSK crude oil Inventories USA
At 23:00 MSK the Decision of the Reserve Bank of New Zealand interest rate
One of the reasons of indexes falling can be called a change in the rhetoric of the Fed after the rate hike last week. It was said that monetary policy will be tightened more smoothly. After a few days, the various representatives of the FOMC began to express a contrary view. So in a speech in Bali yesterday, Eric Rosengren, Federal Reserve Bank of Boston, spoke about financial instability, demonstrated by a sharp increase in real estate prices, also he added that gradual increase in rates could damage the economy. A similar point of view is supported by the President of the Federal Reserve Bank of Cleveland Loretta Mester. Today it is also scheduled speeches of the representatives of the regulator. The sharp decline in American markets was felt yesterday when the index of wide market S&P 500 came close to the lower limit of the upward range, and did not show signs of a rebound. Yesterday, the index broke the uptrend which started from early November last year.
Yesterday European markets were supported by news from France about centrist Emmanuel Macron leadership in the presidential race as a result of the debate. He overtook marine Le Pen, which supports the idea of exit from the EU. As a result the European currency has strengthened and the main currency pair EUR/USD reached the level of 1.08. This news is also reflected in the capitalization of large banks BNP Paribas rose 1.02%, Societe Generale gained 1.64 %, Deutsche Bank grew by 4.29%.
On the market of black gold the search for parity level continues after the recent fall. That increases the volatility of prices. The expectations of investors about the extension of the agreement of OPEC+ for the next half of the year opposed to news about growth of inventories in the United States. According the API change was more than 4.5 million barrels instead of the projected 2 million. Today, it is also expected publication of statistics on this indicator.
Sincerely, Global FX chief analyst Sergey Melnikov.