On Wednesday the US stock indices showed a mild dynamics and closed mixed. The Dow Jones declined by 0.03% (20661.30), S&P 500 up 0.19% (2348.45), the Nasdaq rose 0.48% (5821.64). European markets were down in the single dynamics. Germany's DAX slipped 0.48% (11904.12), stock index of England's FTSE 100 fell 0.73% (7324.72).
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 12:00 MSK Monthly report of the ECB
At 12:15 MSK the speech of the member of the monetary policy Committee of the UK Broadbent
At 12:30 MSK retail sales in the UK in February
At 15:30 MSK the Number of initial applications for unemployment benefits USA
At 15:45 MSK the Speech of fed Chairman Janet Yellen
At 17:00 MSK new home Sales in the U.S. for February
At 17:45 MSK the statement by the representative of the ECB, Lautenslager
At 19:30 MSK FOMC member the Kashkari speaks
In the near future market participants will pay attention to the voting in the lower house of Congress, where it will decide the fate of the replacement of the health care system Obamacare to another, from the new White House administration. The significance of the results is difficult to overestimate, because they can determine the future of the other voting for reforms of Donald trump as tax policy and infrastructure, and other.
After a sharp decline on Tuesday, yesterday the stock indexes showed a slight rebound, consolidating at current levels in anticipation of significant fundamental news. In addition to voting in Congress today it is expected the speeches of fed officials, as well as the head of the regulator Janet Yellen. This will be her first speech after the rate hike last week. Market participants will wait for the clarification of the position of the Federal Reserve, as recently in the rhetoric of FOMC members saw a sharp change of mood from "pigeon" pronounced "hawk".
Following the weakening of the American currency, it can be observed the growth of prices for precious metals. Gold extends gains for a second consecutive week, as if catching up with lost time, after changes in the key rate movement. The fate of the price of the yellow metal depends on the special tax as part of tax reform of the United States, which can lead to economic growth and the strengthening of the dollar.
Yesterday there was no particular volatility In the oil market. Data of the growth of reserves has not been a surprise for market participants. Consolidation is a consequence of expectations of the news from America, which can affect the currency of a quote.
This weekend representatives of countries, members of OPEC will gather for a meeting in Kuwait with the aim of studying the effectiveness of the Vienna agreement to reduce oil production. Now it is more often possible to hear statements about the extension of the agreement for the new six months, but it will be more confident to talk about that only after the meeting OPEC+ in May.
Sincerely, Global FX chief analyst Sergey Melnikov.